Industrial processes and the smart grid: overcoming the variability of renewables by using built-in process storage and intelligent control strategies

Abstract

Manufacturers are facing pressure to reduce electricity costs. Onsite renewable energy generation may be a solution, but its high capital cost and intermittent power generation limit its use. Grid-responsive smart manufacturing could effectively incorporate renewables in industrial processes. This study integrates grid-responsive smart manufacturing with renewables on an industrial plant scale and demonstrates both a favourable economic and environmental outcome. A user-friendly decision-aid model for energy management is provided to manufacturers. A case study shows how solar panels, industrial batteries, smart pumping strategies, and various combinations of those elements can save on electricity costs. Dynamic simulation results demonstrate that grid-responsive smart manufacturing can effectively lower peak demand. The economic results show that grid-responsive smart manufacturing and renewables synergistically optimise cost reductions. The solar coupled with smart pumping scenario shows annual cost savings of $755,200, accounting for 4.6% of the total electricity cost. Smart pumping alone saves $371,900 annually with a 0.7-year payback period, demonstrating how the manufacturing sector can utilise its own processes in load shifting. This study supports that incorporating grid-responsive smart manufacturing with renewables can effectively reduce electricity costs and emissions for industry. Abbreviations: e: Equivalent; GHG: Greenhouse gas; PBP: Payback period; PV: Photovoltaics; SP: Setpoint; VFD: Variable speed drives