Smart energy management solutions can deliver cost savings and power security for energy-heavy businesses

Energy prices are rising worldwide, putting real pressure on businesses, especially those in energy-intensive sectors like mining, manufacturing, and large-scale industrial operations. For these companies, energy is more than a consumable; it is a critical part of daily operations. As such, finding ways to reduce consumption without compromising productivity is essential.

Expanding electricity generation capacity or not

Expanding electricity generation capacity to meet demand might seem like the only solution, but it’s not the first step or only solution. A smarter, more sustainable approach is to focus on how, when, and where energy is used. By shifting to intelligent energy management strategies, businesses can optimise consumption, reduce costs, support sustainability goals, and shield operations from ongoing energy market volatility.  As part of any energy security or energy savings initiative, understanding and optimising the existing consumption or load profile, should be the first step. 

If an energy generation expansion option like adding solar PV is considered, it is imperative to first optimise the existing energy load profile and then base the expansion requirement on the smaller load profile. This approach can save a significant amount in capital expenditure for any proposed expansion project and in some cases even negate the need for immediate expansion.  There are various optimising options to consider, depending on the characteristics and size of the load. Once the existing load profile is optimised, then the next step towards the expansion of energy sources can be considered.

The ultimate fit-for-purpose combination

At the core of smarter energy consumption strategies is a combination of battery energy storage systems, solar PV, diesel- or gas generators, utility supply and then a high-quality energy management system, controlling the various energy sources optimally. By adding battery energy storage to form a micro-grid, it immediately provides the opportunity for other cost of energy saving mechanisms, such as peak-shaving, energy arbitrage and energy security. 

During energy arbitrage, battery energy storage systems act as an energy bank, storing electricity when rates are low, often overnight or during off-peak (low tariff) hours, or from excess solar PV energy and then supplying that energy during peak demand (high tariff) times when electricity is more expensive. This means companies can reduce their total demand from the grid during high tariff times, which directly cuts down on higher-cost energy charges.  These energy demands are measured and billed in both the standard kWh usage as well as the kVA demand costs, which should both be always considered.  By understanding the kVA peak demand of your load profile and using the battery energy storage system to reduce and limit this peak demand from the utility, can produce significant demand savings as this forms a significant part of any industrial energy user’s energy bill. 

Lately, due to the increased utility charges for energy, and the reduction in cost for battery energy storage systems, the business case for adding battery energy storage to large power users (LPU’s) has improved significantly, even without the use of solar PV.

However, storing and discharging energy is not as simple as it sounds. It requires carefully selected equipment with a sophisticated energy- and battery management system that monitors the health of the battery system down to battery and cell levels, predicts its energy needs, and ensures that the system operates efficiently. Such a system continuously analyses the energy demand and supply, to and from the various integrated energy sources and loads.

Tailored solutions for complex energy needs

No two businesses are the same, especially in sectors like mining and manufacturing where operations can be unpredictable. Machines must be turned on and off, shifts change, and production schedules vary, all causing fluctuations in power demand and a one-size-fits-all energy solution will not cut it here. By deeply analysing load profiles and operational requirements, energy solution providers can design customised systems that respond to the unique energy consumption patterns for each site, having identified specific periods when energy usage spikes and targeting those for load shifting or battery use.  It is, however, important to understand - not all equipment are equal and not all equipment will work in every application.  Equipment selection is vital, and this includes both the primary power equipment as well as the control equipment.  It is also important to ensure that the selected equipment will be supported for then next 10 or more years.  

Looking ahead - AI, weather data and proactive energy use

It’s truly exciting how these systems will mature soon. Some larger micro-grid installations are now incorporating weather stations directly into their energy management systems, allowing them to monitor local weather conditions in real time and soon, even use forecasts to inform decisions about energy use and storage requirements. When a sunny day is predicted, a system with solar power integration would opt to store less battery energy overnight, knowing it can rely on solar generation during the day. Conversely, if a cloudy day or storm is expected, the system can conserve battery charge to ensure backup power is available when needed.

Taking this a step further, Artificial Intelligence (AI) will enable these energy management systems to make even smarter predictions and decisions autonomously. AI will analyse complex data patterns, including weather forecasts, historical consumption profiles, and tariff changes, to optimise when to store or use battery energy and even which loads to switch off temporarily to prevent running out of backup power.

Smart energy management becomes a competitive edge

Proactive energy management is about more than reducing cost. It’s about achieving operational resilience. Through the careful balancing of the battery state of charge and load shifting or peak shaving in response to real-time data from load analysis, companies can maintain uninterrupted operations while making the most of cost-saving opportunities.

As this technology continues to advance, the integration of weather data and AI will only make these solutions more powerful, allowing businesses to anticipate their energy needs and adapt proactively. In energy-heavy industries, the ability to manage power smartly will be the difference between business as usual and falling behind.

Richard von Moltke is the General Manager at Static Power, a division of Actom 

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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