A smart approach to winter

In today’s competitive marketplace, driving plant efficiency is a real concern all year round. However, for many manufacturers energy savings are still a particular focus in the colder months. They can be achieved in several ways, but keeping consumption low and shifting volume away from peak times is a great way to start. 

If energy consumption is highest at the times of greatest demand on the grid, the increased cost of managing the energy system during this time will be passed on to consumers – this being reflected in non-commodity charges. 

The Triad season is now also upon us, adding an extra dimension to energy management. Triad charges form part of Transmission Network Use of System (TNUoS) charges. Each year, licenced suppliers must pay TNUoS charges to National Grid to cover its costs of delivering electricity across the network. For half-hourly meters, charges are passed to customers from suppliers as Triad charges.

The ‘Triads’ are the three half hour periods of peak system demand over the winter period (November to February). The peaks typically fall between 4 and 7pm on weekdays during periods of cold weather. This is the time that industrial consumption often coincides with higher domestic consumption. Energy use during the three half-hour Triad periods will determine TNUoS or transmission charges for the following year. 

Smarter plant operation

In 2015, the Energy Saving Opportunity Scheme saw many UK organisations placed under obligations to identify energy saving opportunities for the first time. While this has given companies valuable pointers on how to reduce the volume of electricity they consume, the commercial viability of those measures varies greatly. Some are easy to implement with instant results. Others require large-scale, business-wide changes and moderate to high investment, which can often be difficult to obtain. 

The simple fact remains that many businesses, and particularly those in the manufacturing sector, have untapped cost-saving opportunities available to them. One example of this is the use of on-site generation as a back up only, when it could also be used to avoid importing energy from the grid during peak-periods. Energy could also be exported to the grid to create a new revenue stream. 

Site Optimisation

Analysing existing run schedules and taking a smarter approach to both consumption and generation can lead to substantial savings on energy costs.

For example, one large global technology company was keen to take a more intelligent approach to operational planning, but finding the time and resource was a challenge. With a complex on-site generation set up, which was principally Combined Heat and Power driven, the company needed a strategy that used both generation and consumption assets in the most efficient way. Creating the optimal operational strategy can be a long-winded process, often requiring daily data entry and complicated calculations. As a result, the company based market price input on broad averages, rather than accurate wholesale prices, which change every half hour. They needed a practical, low cost solution that would enable them to respond to market information more dynamically and push down energy costs.

Site Optimisation is a cloud-based product from DONG Energy that uses sophisticated algorithms to calculate the optimal run schedule for a specific operating plant. It does this by analysing market information and interpreting it around the requirements of plant operating constraints and asset availability. It then creates bespoke daily run schedules that detail the commercially optimal way to operate equipment, including whether to use electricity generated onsite or import from the grid. By using Site Optimisation, the company was able to boost resource savings through a reduction in daily planning time, and cut electricity costs by 11%. 

Site Optimisation provides a low-cost option that’s easy to implement. For some, it will also provide the first step into a flexible approach to energy management and more sustainable energy practices for the long term.