How to cut energy costs in a factory

As a factory operator, you are faced with the challenge of optimizing energy consumption in your production and saving costs at the same time. Especially today, when energy costs have risen steadily over the last few years and it is no longer possible for anyone to handle cheap energy completely carefree. This is where intelligent digital energy monitoring & management systems come into play. They help you monitor and analyze your energy consumption in real time in order to specifically save costs and reduce environmental impact. It is also important to know that companies that are not small and medium-sized enterprises (SMEs) have had to carry out regular audits since December 2015 in order to optimize their energy consumption. Nevertheless, a voluntary energy audit or even the implementation of an energy management system in accordance with DIN EN ISO 50001 can also be useful for SMEs in order to obtain tax benefits (compensation regulations in accordance with Sections 63 ff EEG 2014 or peak adjustment under Section 55 Energy and Section 10 Electricity Tax Act).

Definition of energy monitoring & energy management

An energy monitoring system is a technology that makes it possible to monitor and analyze the energy consumption of buildings or systems in real time. It collects data on energy consumption and prepares it in a user-friendly form to make decisions about energy efficiency and cost savings.

An energy management system in accordance with ISO 50001 is a systematic approach to improve energy efficiency and control energy consumption. It comprises procedures and processes that systematically and regularly monitor, document and analyse the energy consumption of buildings or plants. This data is then used to identify and implement energy efficiency measures to save energy costs and reduce environmental impact. The aim of an energy management system in accordance with ISO 50001 is to promote a sustainable energy policy and at the same time optimize energy consumption and energy costs in the long term.

Energy monitoring at machine level vs. entire factory sites

Compared to measuring the entire hall or production line, direct energy monitoring of individual machines is an essential factor for effectively tackling waste at the root. Measuring individual machines gives you greater accuracy and makes it possible to analyze energy consumption down to the smallest detail. This is the only way you can identify which machines consume the most electricity and where the biggest savings potential lies.

Although not directly part of the energy savings, it is still very interesting from an economic point of view. Monitoring the energy data of individual machines during operation can help you identify problems & faults at an early stage, as these are often announced before a machine failure due to unusual patterns in power consumption. In cooperation with the machine manufacturer & with the help of artificial intelligence, a predictive maintenance system can ideally be set up (predictive maintenance).

Smart Energy - integration of energy monitoring data into the Smart Factory

Integrating energy measurement data into your smart factory or IIoT solution has a number of benefits. By linking energy consumption data with other manufacturing processes, such as monitoring machine operating times, you can create a more complete and accurate picture of energy consumption. That's when we talk about “smart energy.” In the best case scenario, a machine is no longer just an energy measurement value, but also the relationship to relevant manufacturing KPIs such as the output of good parts or the tonnage produced. Which in turn allows conclusions to be drawn about the efficiency of your systems.

In addition, integration into your smart factory or IoT solution can also ensure intelligent monitoring and forecasting of load peaks. Through integrated analysis of data, a smart energy system can automatically take measures to avoid short-term overruns of peak loads and thus prevent unnecessary costs. In short, it is only when energy measurement data is integrated into your smart factory or IIoT solution that the full potential of data-driven energy management unfolds, which can provide you with significant cost savings.

Energy saving measures in manufacturing

With a smart energy solution, significant energy savings of up to around 60% are possible - most of them can even be achieved with relatively simple measures.

Switching off systems when idle

The simplest measure that any manufacturing company can implement immediately. You can significantly reduce energy consumption just by switching off the machines at weekends, between shifts, during breaks or other downtimes. The next stage of expansion is when a smart energy system takes on this task autonomously, taking into account upcoming orders and, if applicable, the use of AI.

Intelligent power regulation

Another measure is the targeted use of more efficient and smarter components. For example, controllable systems that can be automatically throttled depending on requirements and do not run at 100% of their output the entire time. With knowledge of ongoing production processes and the semantic characteristics of individual systems, peripheral devices & supporting assets such as extraction systems, ventilation, pumps or ovens in particular can be shut down autonomously by the Smart Energy solution. For example, a central extraction system no longer has to run at full power if only 2 out of 10 cutting systems are actively vacuumed at the current time.

Use of systems with a high efficiency

Another way to optimize energy use is to identify and increase the use of systems with high efficiency. This can be determined using the supplementary machine data from the IIoT platform by relating the energy measurement values to corresponding manufacturing KPIs such as good parts output or the tonnage produced. As a manufacturing operator, by focusing on systems with particularly high efficiency, you can reduce energy consumption and costs without affecting manufacturing efficiency.

Peak load reduction (peak shaving)

In calculating electricity costs for industrial companies (demand above 100 MWh), in addition to annual energy consumption, the highest load peaks are also relevant. If these are exceeded even for an entertaining period of time, this can have a very big impact on annual electricity costs. Through energy monitoring in conjunction with machine and order data (IIoT), a smart energy solution can identify in which constellations load peaks occur most frequently and take targeted measures to reduce them.

Thanks to knowledge of the semantic models of the plants and the relationships in the factory, the Smart Energy solution can decide which machines and processes could be interrupted without damaging machines or causing expensive waste on your current production batch. The subsequent action can then be carried out either semi-automatically, through a recommendation for action to your production employees, or through an autonomous shutdown or throttling of corresponding assets. This allows your company to save energy costs without sacrificing productivity.

Environmental aspects (ESG Score)

Energy monitoring is an important first step towards sustainability and environmental protection. By monitoring and optimising your energy resources, you can not only save costs, but also make a positive contribution to the environment. By taking the energy-saving measures described above, you can avoid unnecessary energy waste and thus actively reduce CO2 emissions. This in turn also has a positive effect on your company's ESG score (ESG stands for environment, social, governance and means environmental, social and corporate governance), which is of growing importance for investors and stakeholders. By using digital technologies such as Smart Energy correctly, we are able to proactively contribute to protecting our environment while promoting the profitability of our company — a win-win situation.

Differential current measurement

Another important advantage of energy monitoring solutions is the ability to measure the differential current or fault current of systems. This is particularly important for the safety of your operators, as fault currents can be an indicator of electrical faults in systems that can lead to fire or electric shock risks. An energy monitoring solution that collects this data can help you identify and eliminate potential security risks early on.

Such an energy monitoring solution also offers an important advantage when it comes to carrying out DGUV V3 tests. This legally required test requires electrical systems to be checked for faults and potential hazards. With an energy monitoring solution that continuously monitors and documents the residual current, you ensure that you meet the requirements of DGUV V3 and do not have to switch it off for a targeted on-site check.

Conclusion

Smart energy is a key to saving costs in your production: Especially in times of rising energy costs, Smart Energy helps you to record and analyze energy consumption and identify potential savings. By reducing peak loads, you can avoid unnecessary energy costs. Measuring energy consumption directly on the machines enables you, among other things, to identify inefficient systems and to use more efficient models in a targeted manner. In addition, by integrating energy measurement data into the smart factory or IIoT solution, you can gain a better understanding of the overall picture. In the long term, smart energy can not only save you energy costs, increase your competitiveness, but also significantly reduce your CO2 footprint.

Overall, it can be said that smart energy in manufacturing is an important step towards a sustainable future. It enables your company to use resources more efficiently while reducing its environmental impact.

Recommendations for companies that want to integrate a smart energy solution into their production:

1. Deploy energy monitoring solutions directly at plant level
2. Identify the most important consumption areas in your company & create an energy balance
3. Integrate energy measurement data into your smart factory to get a holistic picture & to be able to better monitor and control production processes
4. Work with experts to develop additional custom solutions for your business

It is time for companies to use the potential of smart energy in their factory and thus increase their competitiveness and sustainability.

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