Representative End User Clients
Representative Automation Clients
Representative Software Clients
Decarbonization and the transition to renewable energy sources present undeniable benefits, but this shift also significantly increases the complexity and importance of electrical distribution systems for asset owners and plant and maintenance managers. As all production processes depend on electricity, ensuring robust and reliable electrical distribution is paramount. Failing to address potential vulnerabilities in these systems could lead to operational disruptions, resulting in significant downtime and productivity losses.
This ARC White Paper discusses the reasons for the increased frequency of unplanned plant downtimes with a focus on changes in the use of electrical energy driven by the transition away from fossil fuels. Through expert interviews, field examples, and comprehensive case studies, this report provides a holistic overview of the advances and strategies companies are using to become more successful during their digital transformations and energy transitions.
Key Takeaways
Decarbonization and electrification are leading to greater complexity in electrical power distribution, which is why electrical installations and systems are becoming increasingly important for the safe and reliable operation of industrial plants.
Industrial service providers have adopted new strategies to minimize unplanned downtime. The most common reasons for unplanned downtime are inadequate maintenance or outdated technology.
Digital technologies such as AI, data analytics, condition-based monitoring, and performance optimization are revolutionizing the optimum operation of industrial plants. This increases plant safety and boosts production efficiency.
With increasing electrification and digitalization, the market does not have enough experts available to make the best use of these technologies. This is creating significantly increased demand for third party services to support users in optimizing system condition monitoring.
Users can immediately start putting the recommendations in this white paper into practice. The overview of plant assets is updated, an asset risk analysis is carried out, and the effectiveness of maintenance work is monitored. These are valuable methods for both brownfield and greenfield applications to keep assets operating safely and efficiently for a long time.
The Consequences of Unplanned Downtime
Industry players need to consider the consequences of unplanned plant outages and failures. Climate change is causing us to rethink the use of energy generated from fossil fuels. Are alternative, green energy sources as reliable as the current fossil fuel-based energy supply? Are existing industrial power distribution networks prepared for these new applications?
Industry is increasingly electrifying assets. Steam generators and heating appliances are now operated purely electrically. In the past, industry was also largely a consumer of electrical energy, but now some energy is self-generated, using wind power or photovoltaics, and this is affecting energy networks.
This increasing complexity of industrial power distribution, especially for medium and low-voltage transformers and drives, is reinforced by several key drivers. The most important of these is the integration of renewable energy sources. The transition to environmentally friendly energy sources such as PV and wind energy leads to fluctuations and interruptions in the energy supply. To master this complexity, IoT systems, smart power sensors, and automation technologies are being integrated into power distribution networks, but these also increase complexity for plant managers.
Another aspect, which is also driven by the use of renewable energy sources, is the increasing electrification of processes in industry that were traditionally powered by fossil fuels. This trend increases the demand for a reliable electrical energy supply. At the same time, however, the industrial electrical infrastructure is ageing. Modernizing and maintaining older industrial power distribution systems to meet modern standards and efficiency targets is complex.
According to an International Energy Agency (IEA) forecast, by 2050, energy generation in the European Union will get most its power from offshore and onshore wind sources by 2050. The growing share of offshore wind will lead to a reduction in CO2 emissions despite increasing energy requirements.
According to the System Average Interruption Duration Index (SAIDI) of the global energy suppliers, despite blackouts, the reliability of supply is continuously improving. SAIDI measures the total duration of non-momentary power interruptions that the average customer experiences in a one-year period. It represents the average outage duration for each customer, measured in minutes or hours. SAIDI generally includes unplanned interruptions from atmospheric influences, third-party actions, network operator responsibilities, and disturbances from other networks, but excludes planned interruptions, force majeure events, and interruptions lasting less than three minutes.
In 2020, the average interruption per consumer in Europe was 10.7 minutes, 1.5 minutes less than the previous year, marking the lowest outage time since 2006. In 2022, US electricity customers experienced about 5.5 hours of interruptions, nearly two hours less than in 2021, due to fewer major events.
Electrical Supply Security Improves, But Impact of Outages Still Growing
The official statistics show improving electrical supply security, but the industry perceives it differently. Power outages significantly impact operational processes, with many small and medium-sized companies reporting production losses or machine damage. Experts explain this discrepancy by noting that the SAIDI Index only records interruptions longer than three minutes, shorter blackouts are not systematically recorded. Even small voltage fluctuations can disrupt production, causing digital precision machines to produce faulty products and other machines to shut down or require restart.
For example, AC drives, present in almost all rotating machine parts, are frequently affected by these faults and failures. An AC drive can be damaged by a short power supply interruption or other power anomalies. For example, a power MOSFET driving a motor needs a certain voltage at its gate to turn on fully. If this voltage is too low, both the current through it and the voltage across it can be substantial, resulting in a dissipation that can damage it. This is often referred to as "death by undervoltage". For this reason, it is important to protect AC drives from power anomalies and blackouts to prevent potential damage.
In response to the power outages, numerous companies install emergency power generators or additional energy storage systems to cover peak loads. Nevertheless, the root cause of the outage usually remains unclear. In the future, it would be better to install a monitoring system for the energy supply to narrow down the causes of unplanned blackouts or avoid them by taking preventative measures.
Causes of Short Blackouts
Short blackouts in the industrial energy grid, often less than 3 minutes, are typically caused by transient disturbances or anomalies in the power system. These are caused by a variety of factors:
Equipment failure: One of the most common causes of power outages, equipment failure can result from aging infrastructure, poor maintenance, or manufacturing defects.
Fluctuations in power supply: The lack of predictability in the output of renewable energy sources can aggravate the problem of consistently matching supply with demand on electrical distribution networks.
Cyber-attacks: With the increasing digitalization of electrical distribution networks, cyber-attacks have become a significant threat. They can disrupt the functioning of the industrial micro grid and cause power outages.
Interconnected electrical distribution network issues: As grids are often interconnected, problems in one grid can affect others. For example, reduced power supply from neighboring electrical distribution network can lead to power cuts in the industrial micro grid.
Increased electricity demand: Sudden spikes in electricity demand can overload the system, leading to short-term power outages.
The internal power distribution system can be adversely affected by the aforementioned factors, potentially leading to the premature failure of electrical equipment. To ensure uninterrupted operation, it is crucial to implement a monitoring system that continuously evaluates the real-time status of all components and systems. This approach is vital for identifying and mitigating foreseeable faults. A monitoring system can detect issues caused by equipment failure, power supply fluctuations, and increased electricity demand, providing early warnings to plant and maintenance managers. This proactive measure ensures continuous operation with consistent quality.
The growing dependence on electrical power distribution systems underscores the critical nature of maintaining continuous operations. Unplanned downtime presents a multifaceted threat to production assets and processes, carrying profound implications for businesses. The direct consequences of such interruptions extend beyond mere operational disruptions, leading to increased production costs, compromised product quality, customer attrition, and the erosion of stakeholder trust. These repercussions undermine the competitive standing and financial health of enterprises, accentuating the need for strategic foresight and robust risk management practices.
Table of Contents
Executive Summary
The Consequences of Unplanned Downtime
Effective Approaches to Risk Management
Best Practices for Zero Unplanned Downtime
Conclusion
ARC Advisory Group clients can view the complete report at the ARC Client Portal.
Please Contact Us if you would like to speak with the author.
Obtain more ARC In-depth Research at Market Analysis