How Distributed Energy Resources Are Restoring Confidence in Manufacturing

Manufacturers today face a myriad of reliability challenges, from labor shortages to supply chain disruptions, cybersecurity threats, and aging infrastructure. Arguably the biggest overarching hurdle to reliable production, though, is achieving a reliable flow of power. Even a surge or a dip in power can cause major problems — including equipment damage and unexpected downtime. 

Power disruptions and outages can result from extreme weather, natural disasters, or regional grid failures. And with a growing demand for energy in the U.S. to support emerging technologies like generative AI, the nation’s aging power grid is under increasing stress. According to the U.S. Department of Energy, 70 percent of transmission lines are more than 25 years old and approaching the end of their typical 50–80-year lifecycle. The state of U.S. infrastructure means many manufacturing facilities are vulnerable to unexpected outages.

To compensate, manufacturers are choosing to incorporate modular energy sources onsite, including solar panels, wind turbines, generators, and battery energy storage systems (BESS). These energy sources, Distributed Energy Resources (DERs), can be used to generate or to store power. Let’s take a closer look at how DERs can close power reliability gaps for manufacturers by providing a steady, regulated flow of energy even when the public grid is down.

The Advantages of DERs for Manufacturing

DERs like solar, wind, and battery storage provide decentralized power for manufacturing plants. Access to reliable, cost-effective backup energy often means the difference between costly downtime and keeping the production line moving forward. Some advantages of DERs for manufacturing include:

Cost savings

When manufacturers start to generate a portion of energy onsite instead of relying completely on the public grid, they can achieve cost savings — and there’s even the possibility of selling excess energy back to the grid. With an onsite BESS, it’s possible to save, for example, excess daytime energy harnessed via solar panels for use at a later time. 

Energy efficiency

With a software management system connected to DERs and other microgrid elements, manufacturers can monitor energy consumption to identify patterns and manage usage to avoid peak demand charges, curtailing inefficiencies. And because most power generation DERs are tied to renewable sources like sunlight and wind, shifting in their direction empowers manufacturers to reduce their carbon footprint and attain environmental, social and governance (ESG) goals.

Resilience

With DERs providing supplemental and backup power, manufacturing sites can become less dependent on the public grid and other external energy sources. This resulting power resiliency offers a shield against supply chain disruptions — and with a high-quality software monitoring system, manufacturers are increasingly protected against cyberattacks.

DERs & Real-World Success Stories

Due to infrastructure challenges and access to ample renewable resources in the form of solar, Texas is leading the charge when it comes to Distributed Energy Resources. For many businesses – especially in places like Texas – the benefit of having more energy autonomy through DERs makes the most fiscal sense.

Let’s look at a few examples of manufacturers elsewhere who have successfully integrated DERs:

• General Motors
  The automotive behemoth is on a journey toward powering all of its U.S. sites with renewable energy by 2030. Currently, GM has agreements in place with 17 renewable energy plants in 11 states and is on track to meet that goal ahead of schedule. The company also has invested in onsite power generation at several of its manufacturing locations. Results include improving energy efficiency, resiliency, and reliability, all working toward a more sustainable future.
  
  
• PepsiCo
  A large multi-national food and beverage manufacturer, PepsiCo has targeted 2030 as their deadline when they plan to source 100% renewable electricity across all company-owned operations. Movement toward that goal includes incorporating DERs including solar and wind farms in facilities around the world. At their manufacturing plant in the Dominican Republic, PepsiCo has installed more than 3,000 panels generating more than 62,000 kilowatts per month, representing 20 percent of the plant’s total energy usage. In a distribution center in Guatemala, solar panels supply part of the energy for site operation, achieving a 37% energy and cost savings.
  
  
• Ball Corporation
  A well-known manufacturer of consumer packaging, Ball now operates the largest onsite solar energy farm in the state of California at their manufacturing plant in Fairfield. The carbon-free, renewable energy flowing from the solar thermal collectors to the facility replaces natural gas-generated energy the site used previously. Ball reports that incorporating these DERs helps to reduce their carbon footprint and achieve 2030-targeted sustainability goals of reducing Scope 1 and 2 greenhouse gas emissions by 55% and improving energy efficiency by 30%.

The Distributed Energy Resource of the Future: Virtual Utility® and R3Di®

Many manufacturers are exploring the idea of a microgrid — a self-sufficient energy system typically consisting of distributed energy sources (DES) such as solar panels or wind turbines, a battery energy storage system (BESS), and a software management system. A microgrid can manage power for your entire business site or manufacturing plant, and it’s capable of operating independently — meaning it can maintain a steady flow of conditioned power even when the public grid is down. With a turnkey microgrid solution such as the R3Di® System, your manufacturing facility can achieve greater energy resiliency and reliability. 

R3Di^® is a utility-grade, onsite power generation system that delivers conditioned, uninterrupted power and relies on a self-contained, turnkey power platform installed without requiring an interconnection agreement or costly public utility upgrades. By seamlessly integrating power from the public grid, DERs, and backup generators, R3Di^® is capable of providing instantaneous full-load pickup in the event of an outage and sustaining power during long-duration blackouts. 

The system’s software management program, Grid Response Optimization of Virtual Energy (Grove), harnesses AI’s power and advanced analytics to uncover cost savings. By continuously monitoring weather, market trends, grid conditions, and your energy assets, we predict peak demand times and optimize your energy usage, helping keep your utility costs low. Our team of experts works alongside you to provide insights, optimization strategies, service, and support. In an expanding partnership with Keyfive, we also provide AI-driven monitoring and digital twin technology to transform data management and enable smart, real-time energy decisions.

Together, R3Di^® and Grove make up Virtual Utility®, the first utility-grade network with the ability to be located onsite at your manufacturing plant. The system integrates with on-site power infrastructure, including renewable energy sources and EV charging stations, enabling Virtual Utility^® to monitor all sources of distributed generation at your facility.

Learn how you can increase your site’s power reliability and resiliency, and guard against future interruptions.