Case Study: Medium-sized factory in Greater London
Geoffrey manages a medium sized factory in Greater London, which consumes about 10,000 MWh of electricity every year, and operates 365 days per year.
Factories are high users of energy and are looking for low cost ways to reduce their operating costs and increase their resilience against brownouts or blackouts, due to the costs of disrupting production, and reputation damage through not meeting customer delivery deadlines. Factories also have a limited ability to shift their loads, since equipment must often be run at high duty cycles in order to meet production targets, and also may have lengthy start-up or shut-down procedures. Voltage optimisation and a UPS service can also be valuable for factories, since both of these services reduce wear and tear on equipment and extend equipment life.
Geoffrey is actively seeking ways to reduce his operating costs and increase resilience in the face of increasing brownouts and blackouts in England. Energy consumption, and in particular TRIAD charges, are a key point of cost reduction – costing him around £55,000 per year due to the factory plant’s inability to load shift during these periods. Geoffrey’s management team are occupied enough with maintaining production that monitoring or reacting to TRIAD warning signals from National Grid is too burdensome.
Consumes on average 10,000 MWh per year of energy
Runs 24 hours, 7 days per week
Geoffrey is paying around £47,000 per year on TRIAD charges
Other savings (peak price shifting, etc.) can amount to £50,000 per year
Argonaut Power met with Geoffrey and his team to look at the factory’s half-hourly meter data, in order to analyse and understand the factory’s energy consumption over the year. Following some further discussions with Geoffrey’s team, Argonaut’s team produced a battery storage design solution for a 1 MW, 1.5 MWh battery system to meet the factory’s needs and achieve the business objectives of saving energy and reducing TRIAD charges.
Under an Energy Savings Agreement, Geoffrey's business and Argonaut share the savings in avoided TRIAD charges ̶ which in total would amount to £55,000 per year. The factory has gained some buffer in its operational costs and can cope with future uncertainties with more resilience than before.
In addition to reducing the cost of energy bills, Argonaut’s solution has allowed the factory to achieve a lower CO² emission profile, reducing its environmental impact.