THE CHALLENGE
An industrial plant in Victoria grappled with excessive peak kVA demand and high energy costs, compounded by operational constraints that coincided with peak network demand times were in dire need for energy cost optimisation. These challenges were eating into their profitability, while network charges far exceeded those of nearby facilities, causing the client significant frustration and confusion.
Upon conducting a detailed analysis of their energy bills, Power Maintenance Solutions identified the root causes of these challenges:
- Poor Energy Market Timing: The plant’s broker had prematurely locked them into a volatile energy market during a period of gas constraints and generator outages, leading to inflated energy prices.
- Inefficient Network Charges: The plant was not utilising the high-voltage network charge option available in their area, which could have significantly reduced costs.
The client needed a strategic and long-term approach to optimise costs while ensuring operational stability.
Key Energy Challenges
- Excessive Network Charges
Disproportionately higher than neighbouring facilities. - Market Volatility
Locked into high energy prices during gas shortages and outages. - Operational Constraints
High demand coincided with network peak times.
THE SOLUTION
Power Maintenance Solutions employed a two-pronged approach to resolve the client’s challenges and achieve cost optimisation:
- Energy Market Timing
- Conducted a comprehensive review of energy bills to assess market positioning.
- Advised the client to delay renegotiating their energy contract until market conditions stabilised, avoiding further exposure to volatile pricing.
- Monitored real-time market movements and collaborated with energy traders to pinpoint the ideal time for contract renegotiation, ensuring competitive energy rates.
- High-Voltage Network Charge Strategy
- Modelled the client’s network charges to identify cost inefficiencies.
- Recommended a switch to the high-voltage network charge available in their region. This strategic upgrade increased the plant’s capacity, reduced peak demand costs, and optimised overall network usage.
- The upgrade provided an immediate and sustainable cost-saving mechanism for the client.
Solution at a Glance
- Market Strategy: Delayed renegotiation and timed entry to avoid volatility.
- Network Upgrade: Shifted to high-voltage network charges for capacity and cost efficiency.
THE RESULTS
The implementation of these strategies delivered transformational financial outcomes for the industrial plant:
- $4.4 Million Saved: Network charge reductions over four years.
- Payback in Under One Year: The high-voltage upgrade cost was fully offset within the first year through savings.
- Annual Savings: Approximately $921,000 per year on network charges, freeing up significant funds for reinvestment.
The client reinvested these savings into energy-efficient manufacturing equipment, which enhanced operational efficiency and strengthened their competitive position. By reducing operating costs and improving production capabilities, the plant was able to expand its market share and secure its long-term profitability.
Tangible Results
- Network Charge Savings: $4.4M over four years.
- Annual Reduction: $921,000 per year.
- Payback Period: Less than one year for the high-voltage upgrade.
Looking Ahead
This strategic transformation positioned the industrial plant as a leader in cost-effective energy management. With optimised network usage and reduced operational expenses, the client can confidently pursue future growth opportunities and enhance their sustainability initiatives due to the energy cost optimisation acheived.
Power Maintenance Solutions showcased the value of precision planning and expert implementation, ensuring the client’s challenges were not only addressed but turned into a competitive advantage.
Future Prospects
- Operational Efficiencies: Enhanced manufacturing equipment and reduced costs.
- Sustainability Impact: Better energy efficiency supports environmental goals.
- Competitive Edge: Strengthened market position through cost-effective operations.
This case study underscores how Power Maintenance delivers tailored solutions that provide measurable results and sustainable advantages for industrial clients.
Speak to a Specialist
Energy costs can have a significant impact on your business’s profitability, but with the right partner, you can take control of these expenses. Power Maintenance is here to help you navigate the energy market with confidence. Whether you’re a small business or a large enterprise, our customised solutions and expert guidance will ensure that you’re always getting the best deal.
