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How energy storage in manufacturing enhances energy resilience, sustainably

In a rapidly changing energy world, manufacturers are grappling with the realities of energy consumption with challenges including rising costs, capacity constraints, and environmental pressures. Could battery energy storage provide a sustainable answer?

05/03/2025

Author: Nigel Dent, Head of Sales

In brief:

  • Energy is the lifeblood of the manufacturing industry, powering machinery, processes, and facilities around the clock

  • However, as global energy demands increase and sustainability goals become more pressing, manufacturers are grappling with the realities of energy consumption in a rapidly changing world.

  • Battery energy storage could be the key to unlocking greater and greener energy resilience, reducing reliance on diesel generators whilst delivering the additional power needed to manage periods of high energy demand.

For manufacturers, energy is more than just a utility – it’s the lifeline of operations. A sudden power outage, a spike in demand, or even limitations imposed by energy providers can have an impact on production, profitability, and reputation. It’s no surprise, then, that energy resilience has become a critical focus for manufacturers striving to safeguard their operations in an increasingly unpredictable energy landscape.

The rapidly evolving energy sector offers a powerful tool for manufacturing in the form of energy storage systems. Not only can energy storage provide a buffer against outages and capacity constraints, but they can also support a transition to more sustainable practices. This article explores the challenges manufacturers face, why energy storage is a transformative solution, and how it works in real-world cases.

Key Challenges Facing the Industry

1. Capacity caps

To ensure the fair distribution of electricity, energy providers impose Agreed Supply Capacities (ASC) on businesses. These capacity limits can make scaling up operations difficult, as even minor upgrades to equipment can push energy consumption beyond agreed thresholds.

When manufacturers breach their ASC limits, penalties loom – driving up costs at a time when efficiency is crucial. Negotiating a higher ASC adds another layer of complexity, as grid upgrades can cost businesses hundreds of thousands of pounds.

2. Importance of sustainability

Manufacturing businesses are increasingly pushed to meet sustainability targets. ESG (Environmental, Social, Governance) reporting is not just a regulatory requirement; it’s essential for staying competitive in an eco-conscious market. Finding energy solutions that balance performance with environmental responsibility is no longer optional.

Why Energy Storage is the answer

Energy storage systems hold the key to overcoming these challenges, offering manufacturers a reliable and sustainable energy solution. Through dynamic energy management, advanced storage technologies ensure resilience and flexibility – all while reducing costs and boosting sustainability credentials.

Here’s how energy storage can serve as the bedrock for energy transformation in the manufacturing industry.

How It Works

Energy storage systems store electricity during periods of low demand – or when renewable energy sources are producing surplus energy. These stored reserves are then discharged during peak demand to complement existing energy supplies.

For manufacturers, this means maintaining production uptime – even during grid limitations or capacity cap breaches. Energy storage technologies dynamically balance power usage, providing flexibility and control over energy consumption.

“"Solving the energy equation involves rethinking not just how energy is sourced but also how it’s stored, distributed, and used across manufacturing operations. Battery energy storage systems are emerging as a revolutionary alternative to energy management in the manufacturing industry.”

Nigel Dent, Head of Sales Connected Energy

The Benefits of Energy Storage for Manufacturers

1. Dynamic Load Management

Energy storage enables manufacturers to stay within ASC limits by discharging power during peak load times. This means no penalties and more efficient use of energy resources.

2. Cost savings

Avoiding ASC breach penalties and effectively managing energy use directly impacts the bottom line. Energy storage also enables peak shaving, where businesses draw from stored reserves during times of high electricity prices, reducing overall costs.

3. Scaling up without barriers

Energy limitations often discourage manufacturers from scaling operations or investing in new machinery. Energy storage offers the flexibility to upscale operations without worrying about breaching capacity limits or facing prohibitive grid upgrade costs.

4. Enhanced sustainability

Connected Energy’s E-STOR technology is an example of sustainability in action. Our systems use only second-life EV batteries, creating a highly sustainable solution that aligns perfectly with manufacturing sustainability goals.

By extending the life of EV batteries through repurposing, these systems actively support the circular economy and help reduce e-waste, meaning that businesses are reducing carbon from the outset.

5. Protection against outages

Grid reliability can be a significant challenge, and energy storage provides a powerful backup solution. With instant energy access, manufacturing plants can maintain operations during power outages or fluctuations, reducing downtime.

Interested in learning more about energy storage in manufacturing?

Delve a little deeper into the topic of battery energy storage for the manufacturing sector in our latest industry guide.

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