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

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.

Automated summary

Manufacturers are under pressure to cut electricity costs, and onsite renewable energy generation may provide a solution. However, high capital costs and intermittent power generation limit its use. This study demonstrates that integrating grid-responsive smart manufacturing with renewables on an industrial scale can yield favorable economic and environmental outcomes. A user-friendly decision-aid model is provided to help manufacturers manage energy. Dynamic simulation results show that grid-responsive smart manufacturing effectively reduces peak demand, and the economic results indicate synergistic cost reductions when combining smart manufacturing with renewables.