How to put decarbonization strategies to work
How
to put decarbonization strategies to work
Flexible
power systems help cut emissions, keep the power on and improve the bottom line.
By Richard Gorzé January 27,
2025
Learning Objectives
- Understand how to put decarbonization strategies to work to cut emissions, improve resilience and reduce energy costs in industrial settings.
- Explore how microgrid solutions and distributed energy resources (DERs) can enhance energy reliability, sustainability and grid independence.
- Learn actionable strategies to help make a site-specific roadmap and action plan for industrial decarbonization.
Decarbonization insights
- Organizations have many opportunities to progress toward environmental, social and governance (ESG) targets and net zero goals.
- Microgrids and renewable energy systems are essential tools for navigating the evolving energy landscape.
- What do you need your energy system to do? It likely needs to work harder, smarter and more sustainably to power operations into the future. The longstanding approach of setting up your electrical system and largely forgetting about it until something breaks or production requirements change is no longer sufficient.
Extreme weather events, power outages and rising energy costs create significant challenges for around-the-clock manufacturing operations. Simultaneously, organizations are striving to accelerate progress toward environmental, social and governance (ESG) targets and net zero goals. Making headway on all these fronts requires a creative, strategic, holistic and site-specific approach that aligns with business objectives.
Industrial sustainability is about netting more affordable, resilient and clean energy — future-proofing your infrastructure. Ultimately, this yields a competitive advantage.
You’re better-positioned to deal with the unexpected, such as a power outage, price increase or other sudden impacts to local energy systems. Evolving your energy mix and leveraging proven strategies and tools can ensure resilient, affordable energy supplies.
Renewable energy projects can also drive significant excitement within and outside of the organization. Unlike efficiency projects, they are visible, tangible and a source of pride for employees who can see the direct impact. This recognition helps bolster internal support and contributes to the overall success of decarbonization initiatives.
Lay the groundwork for more resilient, decarbonized power systems
There
is no one-size-fits-all approach when modernizing and decarbonizing energy
systems. Yet, the need for flexible energy systems to power industrial
operations is universal. Making that happen requires strategies that meet
specific organizational and facility requirements. What needs to be replaced,
upgraded or added will vary based on location, critical processes, the age of
existing equipment and systems and other factors.
How do you know where to start and what strategy will make the most sense? Based on years of hard-earned experience, an engineering study is a crucial first step. This comprehensive analysis will help determine the scope and requirements for your site, ensuring the project delivers the desired outcomes. The study should evaluate existing equipment and suggest necessary upgrades, providing a roadmap to create energy infrastructure that supports your business objectives well into the future.
One approach to the energy transition revolves around the concept of “everything as a grid” — a framework that turns traditional energy consumers into proactiveenergy producers that have a two-way relationship with the local utility. One way might be pursuing clean energy projects in areas where you can make the biggest impact, including regions where the utility mix is still largely reliant on fossil fuels. These projects help control energy costs, bolster energy resilience and meet regulatory guidelines. But how exactly does this strategy play out in real-world industrial settings?
Decarbonization in action at Eaton’s Arecibo manufacturing facility
We
recently completed clean energy projects at our Arecibo manufacturing facility
in Puerto Rico, where we make circuit breakers used in homes, buildings and
industrial applications. Here are two takeaways from those projects.
1. The best energy is the energy you don’t use, and we took action to drive energy efficiency at the site.
2. A solar-plus-storage microgrid gives new control over our energy supplies and costs, incorporating 5 megawatts (MWac) solar PV and approximately 1.1 MW of battery storage (along with existing onsite generators).
Together, these measures are boosting resilience, driving energy use down 45%, cutting emissions by 7,100 metric tons and substantially boosting our resilience while reducing the facility’s annual energy spend by nearly 20%.
Importantly, the microgrid’s ability to withstand a Category 5 hurricane ensures critical manufacturing operations can remain online in the face of extreme weather conditions.
The Arecibo microgrid balances energy from various sources, including onsite solar panels, energy storage systems and existing backup generators. This flexibility allows the facility to maintain operations even during grid outages, effectively “islanding” itself from external disruptions. During normal operations, the microgrid generates renewable energy that can be stored, consumed onsite or even fed back into the local grid, helping to reduce strain on regional infrastructure while cutting our energy costs.
The focus on sustainability at our Puerto Rico facilities is part of our broad initiative targeting a 50% carbon emissions reduction by 2030, aligning with science-based targets. Our approach incorporates various initiatives, including energy efficiency upgrades, plant engagement to reduce energy usage, onsite distributed energy resources, offsite renewable sourcing and green supply contracts.
Leveraging microgrids and DERs for industrial resilience
Microgrid
systems balance where, when and how electricity is consumed. They provide
control over onsite energy sources and can enable you to island from the grid
to keep the power on even when the grid is down. These systems are highly
adaptable and scalable, enabling facilities to integrate multiple DERs over
time, such as solar panels, wind turbines and energy storage systems. This
flexibility allows industrials to diversify their energy mix, reduce reliance
on fossil fuels and lower energy costs.
Moreover, as industries electrify their operations and expand EV charging infrastructure, microgrids can provide the additional onsite energy capacity needed while minimizing service upgrades.
Additionally, microgrid systems like the one helping power our Arecibo manufacturing site can enable businesses to sell excess energy back to the grid during peak demand periods. This creates new revenue streams while also contributing to overall grid stability.
Overcoming the technical challenges of microgrid implementation
The
successful deployment of a microgrid requires careful planning and
collaboration with key stakeholders, including technology providers, financing
partners and local utilities. Our Arecibo project, for example, was financed
through an energy-as-a-service (EaaS) model. This approach shifted the
investment from a capital expenditure to an operational expense, making it
easier for our company to invest in sustainable energy infrastructure.
From a technical perspective, one of the primary challenges in implementing a microgrid is ensuring that all system components work in harmony. This requires:
- An optimized control architecture
- Precise synchronization between energy sources
- Ongoing system tuning
You
may also need to audit existing energy systems to ensure components such as switchgear can handle new energy inputs.
It is also critical to consider your environment and resilience requirements. For example, high winds can have a huge impact on the installed base of PV arrays, and it is up to system designers to interpret local building codes and standards to develop a mounting system that will withstand the wind loading of the given site.
Your state or local building codes will provide guidance on wind load calculations and limitations for a given area. These formulas take many aspects of the PV system and environment into consideration, including historical wind data, panel tilt, distance from roof or foundation, racking material selection and bracing type.
Protecting microgrid components
In
addition to protecting PV modules and racking systems from winds, there are
opportunities to protect other microgrid components such as generators and
battery banks by ensuring they are enclosed within a reinforced structure.
These structures will also need to meet local building code requirements for
wind bracing, structural engineering, rooftop weight and more.
It is vital to ensure the foundation and support structures used for any microgrid component are rated for the intended load and potential environmental conditions. This can be a challenge when attempting to retrofit an existing rooftop with solar PV modules and racking. Structurally reinforcing an existing rooftop is often cost-prohibitive, so ground-mounted PV installations on a reinforced concrete pad designed for the local environment are common.
Since many renewable energy projects are financed by power purchase agreements (PPAs), the project owner is responsible for ongoing maintenance. The PPA agreement outlines maintenance responsibilities and it’s critical to involve operation and maintenance teams to ensure roles and responsibilities are clear. It’s also important to consider who will take over system maintenance and whether upgrades will be possible.
Create a scalable blueprint for climate-friendly power infrastructure
The
path toward a decarbonized, resilient energy future requires careful planning,
collaboration and strategic investment. Microgrids and renewable energy systems
are essential tools for navigating the evolving energy landscape and businesses
that prioritize sustainability are better positioned to thrive in the long run.
While each facility’s needs are unique, a common factor is the need for flexible, scalable energy solutions that support increased electrification and renewable integration. Plant management teams play a crucial role in guiding their facilities through this transition, ensuring that energy systems are not only reliable but also ready for scaled energy optimization projects. Here are several strategies that can be implemented today to optimize performance and help future-proof operations while setting the stage for further decarbonization investments:
- Prioritize energy efficiency improvements: The best energy is the energy you don’t use. From lighting systems to motor-driven equipment, there are countless opportunities to cut energy consumption, reduce cost and improve sustainability.
- Integrate DERs: Adding onsite renewable energy systems, such as solar PV, can significantly reduce both electric bills and carbon footprints. These systems can be designed to meet the specific energy needs of each facility.
- Leverage energy storage: Energy storage systems provide industrials with the flexibility to use self-generated energy during periods of high demand or when the grid is unavailable. This helps reduce peak demand charges and further cuts utility bills.
- Embrace digitalization: Smart energy management systems and digital tools provide real-time insights into energy usage, enabling more efficient operations, predictive maintenance and better decision-making.
- Engage with utilities early: Every utility has its own set of interconnection requirements and incentive programs. Early engagement helps ensure that projects are appropriately sized and compliant, reducing delays and unforeseen costs.
Building
a more sustainable tomorrow starts today
The
pressure is on companies to develop more capable power infrastructure in our
increasingly electrified and sustainability-focused world. By leveraging the
energy transition alongside advancements in digital technologies and advanced
control systems, you can create more flexible and scalable energy systems that
advance organizational decarbonization goals and help boost the bottom line.
Through the implementation of DERs and microgrid systems, there are opportunities to reinvent the way energy systems support a more sustainable and profitable future for companies. Regional and federal government funding and tax incentives make the decarbonization more achievable than ever.
By creating flexible energy systems, you can build the foundation for a more resilient and sustainable operations and gain greater control over your energy costs.
Richard Gorzé is the senior global energy manager at Eaton.
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Author
Bio: Richard Gorzé is the senior global energy manager at Eaton.
Source:
https://www.plantengineering.com/articles/how-to-put-decarbonization-strategies-to-work/
