Industrial load shedding to tackle the energy crisis
The energy crisis is here and industry is being hit hard. Prepare your load shedding contract to manage the energy shortage. What is a load shedding contract, and why are we hearing more and more about them these days?
What is an energy curtailment contract?
Increasingly developed throughout France, industrial load shedding aims to guarantee electricity supply at all times and for all. Industrial companies, which consume large amounts of electricity overall, sign contracts with a load shedding operator to make their load shedding capacity available to the power grid, and to offload their consumption when needed, in return for an income.
In other words, it’s a contract between a company and an electricity transmission network (also known as RTE). It involves making a commitment, at the RTE’s request, to temporarily cut off part of its energy consumption. In exchange for this promise, the RTE will pay an annuity to the signatory company.
A load shedding contract with a company is different from diffuse load shedding, which involves cutting off electricity to a large number of “small consumers”, such as private households.
Why the industrial load shedding contract?
TENs are able to supply energy in line with their forecasts. In fact, part of the energy produced and not consumed is lost, as energy is difficult to store. However, consumption in France is not a constant that can be reliably forecast. There are time-dependent peaks in consumption, particularly at 7pm, when people go home and prepare their meals. Demand is also higher in winter, when heaters are switched on.
In order to be able to supply energy continuously during these peaks, it is necessary to be able to reduce consumption at other locations.
Industrial customers can sign up to a load shedding contract with the electricity distribution network administrator. With this contract, they receive a signal asking them to “switch off”.
The network administrator takes out “insurance” with the manufacturer. He will pay a certain amount so that, if ever the industrialist finds himself in a situation where he has to crush his network, he can ask the industrialist to cancel part of his consumption. The main advantage of this system is to secure the power grid.
The network administrator can’t be sure that he’ll need to ask the industrialist to step aside, but if he does, this insurance ensures that he’ll be able to respond instantly to the electricity supply.
Why is a load shedding contract particularly suited to industry?
Industry, and especially production lines, are constantly using energy-hungry machines, due to their speed and size. It is therefore in industrial installations that the greatest immediate energy savings can be made. This is where we find the largest and most profitable contracts for companies.
Application methods for industrial energy curtailment contracts
You determine the amount of energy you can cut off on demand when the contract is drawn up. However, there’s no question of cutting your production completely. That’s why it’s important to determine in which sectors of the company, or of the chain, the installations can be paused.
These savings can be achieved by using alternative energies, such as generators, or by pausing part of the line, sometimes using a buffer stock to cushion the temporary drop in production.
To give you a clearer idea of the industrial electricity shedding contract, let’s take an example:
- A plant with 4 production lines subscribes to a load shedding contract with a load shedding operator.
- It receives an order from this operator to make its load shedding capacity available to the power grid.
- The clearing contract specifies that the company must clear x GW, which obliges the company to shut down a production line. This system can be managed in two different ways:
- Either the industrialist has the capacity to stop a production line, and so, when he is asked to stop the line, he can stop it immediately.
- Alternatively, it can be equipped with on-site generators. When it is asked to clear part of the consumption, it starts the generators to ensure the production of electricity to feed the production line.
- The quid pro quo is that the plant will receive income in return for having carried out this deletion.
Why is the electricity curtailment contract particularly important today?
There are two main reasons why the energy curtailment contract is currently being given greater prominence.
The first is that energy consumption is becoming increasingly difficult to predict, with heaters gradually coming back on, the government encouraging savings, and ecological awareness changing the habits of some French people. It is therefore important for TENs to have greater flexibility to meet this shifting target.
The second is the oncoming winter. Energy suppliers are anticipating an increase in demand, as well as energy shortages. Indeed, with the war in Russia, certain energy circuits will no longer supply homes in Europe. We therefore need to find ways of reducing France’s energy consumption and continuing to supply homes, while limiting the use of the most polluting energies, such as coal.
How does Dametis help you get a better erasure contract?
The more you are able to limit your energy consumption, the more profitable your load shedding contract will be. However, don’t overestimate your ability to save, or you risk impacting your production and being unable to meet delivery deadlines.
Applying the principles of energy efficiency
Dametis can help you do more than just save energy. Once we’ve assessed your needs, we’ll advise you either on how to reduce your energy consumption in order to benefit from an energy-saving contract, or how to increase your production without consuming more energy.
- We identify your equipment, your industrial process and their power consumption.
- We identify opportunities for flexibility in the most energy-intensive equipment.
- We define your site’s load shedding potential, taking into account your site’s production constraints.
- We explore ways of optimizing your site’s deletion potential.
Alternatives under consideration
That’s where Dametis comes in: we map your energy installation, using sensors and our MyDametis software. We work with you to quantify the energy consumption of each link in the production chain, and help you determine :
Facilities that can be temporarily paused
The amount of infrastructure that can continue to run thanks to alternative energies, such as your generator.
This information is essential, because measuring the exact amount of energy you can do without enables you to get the highest rent with your RTE.
Easy monitoring and reporting to keep your end of the bargain
Once the contract has been signed, you’ll need to prove that you’ve limited your consumption at the times requested. Dametis turns your electricity grid into a smart grid, enabling you to record and communicate this information easily, to ensure the transparency of your energy-saving contract. This will avoid any disputes or litigation on the part of the electricity transmission network.
Dametis can help you set up your erasure contract
To make the most of your energy, whether with an energy curtailment contract or by increasing your production, contact Dametis, and benefit from expert advice and support.
