Foundry Energy Management and Peak Demand Control

 USA - CANADA - INTERNATIONAL

Foundries have a unique opportunity to manage electricity costs effectively because the furnace loads are typically very controllable. This means that in the case of induction furnaces, power can be backed off when significant economic benefits can be achieved by doing so. Where arc furnace power control is required, the melting can be paused or the electrodes can be moved appropriately to temporarily reduce energy use.

Of course the issue of melt time and any effects on quality always come into question. Our customers experience has been that in some cases melt time can be increased by several minutes, however the economic benefit to the company far outweighs this.  In terms of quality, we have not had a foundry customer experience quality control issues due to controlling electricity consumption.

There are several Energy Management scenarios that may apply to today's foundries.

Scenario 1:   Foundry that is billed for peak demand charges

In this scenario, you will have a peak demand charge on your bill. This charge is typically calculated based in maximum kW, or kVA which occurs one time during the month. The basis here is that if you knew when you were setting a new peak demand then you would reduce the load at that time and avoid a significant portion of the demand charge that appears on your bill.  The demand charge is calculated  Dollars X kW or kVA at the time of the peak.

Peak demand is calculated in a variety of ways depending upon the Utility billing rate structure, however it is always calculated over time, ie: the maximum amount of usage in and 15, 30 or 60 minute qualifying period.  Some utilities also have on/off peak times during the day and may only calculate peak demand during the "on peak" hours.  This was originally designed to encourage industry to reduce load during the daytime hours when domestic load is high, therefore you will typically find on peak hours something like 8am - 8pm.  For off peak hours, demand charges might not be calculated or may be charged at a much reduced rate for the peak during "off peak" hours.

By monitoring the facility electricity usage in real time, the LCA Software displays to management and melt managers the 'real time' usage relative to a management set PEAK DEMAND TARGET. The software then sends out the appropriate load reduction signals to the furnaces automatically when necessary to reduce demand. 

Scenario 2:   Foundry operates in deregulated electricity market

For Foundries that operate in a deregulated electricity market such as PJM or Ontario's IESO market, demand may not be the main issue.  For these customers the economic benefit comes from knowing when the price of electricity goes high and reducing load at that time to avoid paying the skyrocketing price.

This is achieved automatically with the LCA Software as it monitors the real time price feed from the Electricity Market Operator and relates it directly to the PRICE TARGETS that have been set. When the price of electricity goes high, a pre-planned load curtailment strategy is executed reducing the load to a programmed target level for a specified period of time, or until the price comes back down. 

Scenario 3:  Foundry desires to budget and actively manage electricity use

In this energy Management Scenario, the Foundry management would like to take a more active roll in managing electricity usage on a pro-active basis.  By setting hourly kWh consumption targets for each hour of operation, total kWh usage is managed, peak demand is regulated and the Foundry can actively predict and budget energy costs for the accounting month.

Whether your facility is Industrial or Commercial, we have knowledge and software that can help you reduce and quantify Utility related operating costs.

We offer a knowledge base to our customers that is based on over 30 years of experience in the Energy Management and Control field.

The challenges for Companies that use significant amounts of energy are more complex than ever before.  Rising costs, the need to update metering equipment and complicated billing methods make energy a challenging issue for Management and staff at a variety of levels. We're here to help you! 

Do you have questions regarding Energy Management in your Foundry or Steel Facility?
Please feel free to contact us at  info@energyreporting.com