The years since the COVID-19 pandemic have seen a seismic shift in the way that businesses approach investments – even when they are looking to fund their growth ambitions. Since 2020, capital expenditure has been slashed, replaced with more predictable and stable operational expenditure.
Economic pressures, too, have strained many companies’ budgets, with supply chain issues and inflation causing many to take another look at their spending.
It’s natural, therefore, that businesses would want to optimize their operations, find efficiencies, and cut costs wherever possible.
At the same time, increasingly stringent regulations around environmental practices and sustainability, as well as societal pressures, are forcing businesses to adapt their operations to remain competitive and green.
It can be a delicate balancing act for some, but the key to success lies in investing in a robust modernization program that focuses on upgrading, extending or retrofitting facilities with energy-efficient electrical systems.
Modern solutions for modern challenges
There is a global push for decarbonization, driving an increase in electrification. Alongside that, there has been a steady increase in the amount of energy used – according to the International Energy Agency (IEA), worldwide electricity demand is set to grow at 3.4% annually for the next few years, with the amount of power consumed by AI, data centres and cryptocurrency set to double between 2024 and 2026.
Electric vehicle charging, too, will create significant demand on the power grid. Ausgrid – the largest distributor of electricity on Australia’s east coast – expects a 7400% increase in the demand in EV-charging-related energy by 2029, rocketing to 1500GWh per year. It’s a pattern we can expect to see replicated around the world.
There are huge changes in electricity generation, too. The IEA predicts that low-emmissions sources, including nuclear, will account for all of the growth in global demand over the next three years, and account for more than half of global electricity generation by 2026.
It’s no surprise, then, that many organizations (71%) cite the energy transition as a priority for their strategic goals in the next 1–2 years. Of those organizations, nearly 90% are making monitoring and automation of their plants a top priority.
This kind of monitoring is made possible by the modernization – and digitalization – of your electrical infrastructure.
Digitalization not only paves the way for significant cost savings and enhanced equipment life cycles, but also boosts efficiency and reliability while reducing environmental impact.
ABB Electrification Service can help you take a strategic approach modernization so your business can thrive in a competitive landscape.
Improving efficiency through intelligent tech and systems
The most effective way to boost efficiency is to replace older, non-digital circuit breakers with more intelligent models, which can enhance capacity and lower operational costs.
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This was the approach taken by Hafslund Celsio – Norway’s largest district heating and waste incineration company. With its switchgear having done decades of service, the company identified that it was time to update.
It upgraded its switchgear from MNS2.0 to MNS3.0, meaning it could also upgrade to the modern Emax2 air circuit breaker with Ekip Touch relay protection and energy metering.
Emax2 is the only breaker of its kind – it can both protect electrical circuits and reduce energy consumption based on users’ needs.
The retrofit also means that Hafslund Celsio has real-time data on the status of its systems, allowing for improved monitoring and automation. In fact, this type of modernization project has resulted in an energy capacity increase of up to 20% and a reduction in operational costs by as much as 30% for some businesses.
Improve reliability and minimize downtime
Modernization also plays a crucial role in minimizing downtime across operations.
For example, performance upgrades are designed to protect electrical systems and ensure they operate at their best. Upgrading key components such as circuit breakers, protection relays or switchgear enhances the safety, reliability and efficiency of the electrical infrastructure, minimizing production interruptions and maximizing operational continuity.
On the other hand, digital upgrades integrate advanced technologies into your electrical systems, enabling condition-based and predictive maintenance capabilities. Using smart sensors and data analytics, businesses can monitor equipment performance in real-time and identify potential issues before they escalate.
This proactive approach to maintenance not only increases uptime but also reduces overall maintenance costs by allowing for targeted interventions rather than costly emergency repairs or useless time-based maintenance.
The City of Cape Town teamed up with ABB Electrification Service to install additional 12kV VD4 circuit breakers and ancillary equipment to replace its aging LMX installations. These devices will clear potentially harmful short-circuit faults in tens of milliseconds, preventing severe damage to electrical infrastructure and minimizing the risk of downtime, which is particularly critical for the Western Cape during planned loadshedding.
Upgrade and retrofit for cost savings
Modernization can bring enormous benefits to a business looking to improve both profitability and sustainability. For example, upgrading or retrofitting LV or MV switchgear can result in a 40% total cost saving and an 80% reduction in CO2 emissions, when compared to a wholesale replacement of complete electrical systems.
Steel Dynamics Heartland Division, with assistance from ABB Electrification Service, modernized its aging substation with an upgrade of switchgear doors, protection relays and controls at its 18-breaker substation. This not only boosted safety and reliability with a power protection upgrade, it also prevented costly downtime that would have resulted had the old system failed.
The business chose to upgrade to ABB’s Relion® 615 series as the new protection relays – this compact and versatile device offers protection, control, monitoring and supervision. It also includes communications capabilities, which means SDI Heartland can monitor their main relays and understand what each of their feeders is doing.
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Increasing the lifespan of infrastructure
Modernizing your electrical infrastructure will also increase its lifespan – sometimes by as much as 30 years. While this has clear benefits in reducing the overall cost of ownership, it also contributes to a circular economy by keeping infrastructure in use for longer.
Core elements of switchgear like the frame, bus bars, mechanical structures, and power cables – around 50% of the materials in the assembly – remain intact while our team of experts focuses on replacing or adding new electronic and communication components.
As the world’s leading supplier of forging die, plastic mold, and die casting tool steels, Finkl Steel® wanted to move away from its heavy reliance on disruptive maintenance cycles that slowed production and tied up resources, and instead adopt maintenance-free processes. That meant they needed to upgrade their circuit breakers.
With the help of ABB, it upgraded its electrical cabinet with just one specialized VD4-AF1 arc furnace breaker instead of four, which has much greater longevity and endurance, slashes maintenance costs and brings added technological benefits as well as significantly reducing its waste footprint. In total, the business saw a 35% reduction in total cost of ownership.
Partnering with experts like ABB Electrification Service will provide the strategic insights and support needed to successfully transition towards a more sustainable and profitable future. Embracing modernisation is not just about keeping pace; it’s about leading the charge towards a greener future.