Power June 2023 - 26

COMMERCIAL & INDUSTRIAL POWER
Reducing Operational Constraints
and Emissions by Increasing
Flexible Energy Capacity
Today, modern network technology can transform commercial and industrial facilities
into power sources that generate, store, and trade clean energy, allowing owners to
increase cash flow, achieve decarbonization goals, and improve energy reliability.
Nick Schmidt and Alex Hyans
nergy flexibility can be a competitive
advantage, particularly when
an industry is operating under increased
constraints. Changeable power
costs, the need to reduce carbon emissions,
and questions about energy reliability
are frequent concerns shared by
commercial and industrial (C&I) companies.
However, the industry has more options
now to deal with these challenges,
which include tapping into their building
assets to increase cash flow, achieve decarbonization
goals, and improve energy
reliability-all at the same time.
E
Common Power-Related Pressures
Power constraints are tightening as C&I
companies do more with electrification,
automation, and the Internet of Things.
These capabilities improve efficiency
and flexibility, but they also require more
power. In some cases, the electrical grid
substation serving an industrial company
cannot handle the added demand, and
electrification can mean that the company
must pay to upgrade its grid connection.
In other cases, C&I companies may
be competing more broadly for power resources,
as newer technologies, such as
cryptocurrency, demand more electricity
from the grid that serves the community.
Power costs have also been increasing.
According to the U.S. Energy Information
Administration, the average price
for electricity in the Industrial sector was
more than 17% higher in 2022 versus
2021. Depending on the electricity market
a company operates in, those costs
can spike unexpectedly as a function of
supply and demand, as happened in Texas
with Winter Storm Uri in 2021.
With severe storms, heat, and increased
power demand, companies are
also concerned about the stability of the
grid. The National Oceanic and Atmospheric
Administration's National Centers
26
for Environmental Information tallied 18
" Billion-Dollar Weather and Climate Disasters "
in the U.S. in 2022. The cost
of downtime due to a power outage following
one of these events can be significant
in the C&I space, making reliable
methods for maintaining operations and
energy imperative. The U.S. National Renewable
Energy Laboratory offers a free
" Customer Damage Function Calculator "
to help companies estimate the cost of
an electrical grid outage for their site.
Many C&I companies also need to
reduce carbon emissions from energy
consumption. According to the U.S. Environmental
Protection Agency, " Industry "
was the third-largest producer of greenhouse
gas (GHG) emissions, representing
23% of the total. Investors and local
governments are increasingly requiring
reductions in Scope 1, 2, and 3 emissions
types. The National Conference of State
Legislatures reports that 16 states plus
Puerto Rico have GHG emissions reduction
requirements, and cities such as New
York, Boston, St. Louis, and Houston have
their own emissions reduction standards.
Overcoming Challenges with Flexible
Energy Capacity
So, how can C&I organizations overcome
these common constraints? With flexible
energy capacity, buildings have the ability
to generate, store, and manage their own
energy through onsite solar, electric vehicle
(EV) charging (Figure 1), battery energy
storage systems, and other solutions.
But before companies begin implementing
these sustainable solutions, it's
important to baseline an organization's
energy usage and emissions. This will
give companies real data and insights
for determining where they have flexible
capacity, what their carbon emissions
profile looks like, and the relative scale
and economic implications for leveraging
flexible capacity and reducing carbon
emissions to required levels.
Real-time, in-building data and analytics
technology, such as Blueprint Power's
proprietary metering hardware (DIGBOX)
and online portal, capture and display
data (from chillers or cogeneration units,
for example) at a building systems level.
This data is more detailed than what a
typical building management system or
utility meter is designed to capture, and
by layering on energy load consumption
curves, dual fuel usage, and weather information,
a more precise energy profile
can be formed.
From there, companies assess pat1.
Commercial and industrial organizations
can implement a variety of energy solutions
that improve system flexibility. One is
managing electric vehicle charging based on
real-time supply and demand signals. Source:
Envato Elements
www.powermag.com
terns in their energy consumption. Are
systems running when they don't need
to be, or not running when they should
be? For example, companies have been
able to save money by identifying power
spikes caused by malfunctioning systems
or missed maintenance on equipment
that was scheduled to be run and
serviced monthly. Companies can also
evaluate the feasibility of operating systems
at different times when power
rates are lower. Furthermore, they can
identify which systems and processes
are generating the most emissions, and
determine if there is flexible energy capacity
that can be sold to the grid.
POWER | June 2023
http://www.powermag.com
Power June 2023

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