At home, voltage deviations in the power supply are relatively inconsequential: The overhead lights flicker; you need to reset the clock on the microwave; the wireless internet may take a moment to reload. But for industrial consumers- and especially manufacturers- even a minor voltage deviation can have a significant impact on the bottom line.
Most of today’s modern manufacturing equipment is designed to operate at a very specific voltage and frequency. Common Power Quality (PQ) issues like voltage sags and swells, transients, harmonics voltage variations, and momentary power supply outages often result in the failure or misoperation of equipment, leading to costly delays.
A Practical Example
Let’s take a look at an example of the high cost impact of PQ:
A manufacturing facility is producing plastic widgets formed from extruding plastic pellets using a large extrusion machine. When a PQ instance occurs, the computer systems operating the machine is reset. During this time, the plastic solidifies and must be removed from the machine prior to restart. A small PQ instance requires 5 hours before it may be operated again. The associated costs with the down time include:
|Loss of Revenue||$8,000/hr @ 5 hours||$40,000|
|Loss of Raw Material||$5,000/instance||$5,000|
|Loss of Labor||$3,000/hr @ 5 hours||$15,000|
|Total Loss for a PQ||Instance||$60,000|
Many manufacturers in Ontario report up to 8 PQ instances per year. Using the example above, this may result in nearly $500,000 in lost revenue each year!
Not to mention other, additional expenses:
Even minor voltage deviations can increase scrap rates, particularly for manufacturers similar to the above example. Let’s say that the manufacturer’s plastic webbing during the voltage deviation changes by a quarter-inch (or even a few millimetres!)- the off-measure products can’t fulfill the order and therefore cannot be sold. Whether it’s a loss of raw materials or inaccuracies as a result of PQ, scrap costs can be sky-high.
In many cases, additional labour will need to be brought in, or existing labour will need to be paid overtime in order to recover from the PQ incident.
Many manufacturing sales are time-sensitive, and missing a deadline can negatively impact the relationship between the manufacturer and their client.
A Low-Cost Solution for High Quality Power
Particularly during peak demand, power quality in Ontario can be unpredictable. And the losses that result from poor PQ have the potential to carry significant consequences. For manufacturers, now is the time to begin implementing PQ infrastructure to decrease the risk associated with voltage deviation.
Constant Power’s Energy Storage as a Service (ESaaS) program isn’t just responsible for grid energy storage, like other battery power storage technology on the market today. Though ESaaS does save electricity cost through energy arbitrage, it also provides Uninterrupted Power Supply (UPS) to customers each and every day. Rather than simply “kicking in” in the event of an interruption (which often still results in a disruption within a manufacturing facility), ESaaS controls the quality of the power it’s delivering at all times, even when the grid power storage system is not in storage mode. Furthermore, in the event that ESaaS fails or does not operate, Constant Power takes full responsibility and compensates the customer for lost savings.
ESaaS grid energy storage customers reduce their annual energy spend by 50%, without having to invest any capital outlay or operational resources to implement the program. The ESaaS total service model includes design, installation, insurance, and ongoing monitoring, all at an affordable, fixed monthly rate.
To find out more about how ESaaS can help protect your manufacturing facility from the costly delays associated with poor PQ, contact us today.
No only are we reducing your electricity costs, but you are getting better quality power