Assessing demand management opportunities in UK energy-intensive industries: a West Midlands case study

This paper explores the potential of Demand Side Management (DSM) strategies for decarbonising Energy-Intensive Industries (EIIs) in the West Midlands, with a focus on the forging sector. It examines energy consumption, carbon emissions, and operational patterns, highlighting opportunities for load flexibility, especially through Time-of-Use (ToU) or variable tariffs. The study reveals that under a fixed tariff, the average electricity cost for a specific electric forge furnace was £213.99 p er day, which increased to £261.20 per day (a 22.06% rise) under a variable tariff due to peak operational hours aligning with high-tariff periods. Using real-time electricity consumption data from a forging SME and a techno-economic model, the analysis demonstrates the financial risks of inflexible operations under ToU regimes. The average unit cost rose from £0.1524 to £0.1860/kWh, with some hourly rates exceeding £0.32/kWh. Additionally, the study establishes a baseline of greenhouse gas emissions, with daily CO₂e emissions exceeding 113 kg for a single furnace, underlining the sector's decarbonisation potent ial. The findings emphasise the need for adaptive scheduling, real-time monitoring, and strategic load shifting. Recommendations include hybrid pricing models, thermal energy storage integration, and policy incentives to support DSM adoption.