{"id":7693,"date":"2024-12-18T14:09:00","date_gmt":"2024-12-18T20:09:00","guid":{"rendered":"https:\/\/www.mhisolutionsmag.com\/?p=7693"},"modified":"2024-12-18T09:28:04","modified_gmt":"2024-12-18T15:28:04","slug":"thinking-outside-the-grid","status":"publish","type":"post","link":"https:\/\/www.mhisolutionsmag.com\/index.php\/2024\/12\/18\/thinking-outside-the-grid\/","title":{"rendered":"Thinking Outside the Grid"},"content":{"rendered":"<div class=\"htmlBody article_div\">\n<div class=\"roofHeader\">Feature<\/div>\n<div><\/div>\n<h4 class=\"roofHeader\">From charging forklift batteries and electric vehicles to running conveyors and keeping the lights on, modern, clean supply chains depend on an uninterrupted supply of power from America\u2019s electrical grid. But demand for power and other factors are testing the grid\u2019s reliability like never before, sending users scrambling for solutions to ensure access to the electricity they need to power their enterprises and continue the transition to a carbon\u2011free energy future.<\/h4>\n<div><\/div>\n<div class=\"byline\">BY <span class=\"author-name\">DAVID H. COBURN<\/span><\/div>\n<div><\/div>\n<h6 class=\"picture\"><img decoding=\"async\" src=\"https:\/\/www.mhisolutionsmag.com\/wp-content\/uploads\/2024\/12\/030.jpg\" alt=\"thinking outside the grid\" \/><span class=\"attribution\"><a href=\"http:\/\/ISTOCK.COM\/\">ISTOCK.COM<\/a>\/D\u2011KEINE<\/span><\/h6>\n<p><span class=\"dropCap\"><strong>I<\/strong><\/span>t might be impossible for younger generations to imagine a time when America\u2019s electric utilities were so eager to boost demand for power they created their own industry ambassador\u2014a whimsical cartoon character named Reddy Kilowatt\u2014and put him to work promoting the consumption of their product. With lightning bolts for arms and legs, a lightbulb for a nose and wall outlets for ears, ever\u2011smiling Reddy served for seven decades starting in 1926, appearing on billboards and in utility logos, starring in a movie and comic book\u2014&#8221;Reddy Made Magic&#8221;\u2014and unabashedly plugging electricity\u2019s virtues in song.<\/p>\n<p>&#8220;I am always there, with lots of power to spare, \u2018cause I\u2019m REDDY KILOWATT,&#8221; Reddy boasted in a catchy jingle featured in radio and TV commercials.<\/p>\n<p>But just as supply chains are looking to depend even more heavily on electric power as they transition facilities to a net\u2011zero economy, America\u2019s electrical grid today faces monumental challenges in delivering on the industry\u2019s foundational promise of always\u2011on, reliable, abundant energy.<\/p>\n<p>Demand for electrical power is growing for the first time in 25 years, so much so that generating capacity in the U.S. would have to double by 2035 to meet the nation\u2019s projected needs. Several factors are driving the growth and concerns about the reliability and resilience of our energy supply:<\/p>\n<ul>\n<li>Electricity use by America\u2019s tech giants is exploding as they build out new data centers to handle the huge computing power requirements of artificial intelligence (AI) programs. Some experts project a 15% annual growth rate in electricity consumption by data centers through 2030.<\/li>\n<li>Electrification as a key to meeting climate goals is further straining grid capacity as factories, warehouses and distribution centers (DCs) invest in forklift electrification and replace vehicle fleets powered by internal combustion engines (ICE) with electric vehicles (EVs) for last\u2011mile delivery.<\/li>\n<li>Reshoring of U.S. manufacturing is juicing demand for power, and production and investment tax credits included in the Inflation Reduction Act (IRA) have layered on additional incentives to accelerate supply chain electrification.<\/li>\n<\/ul>\n<p>Adding to new demands on generation, transmission and distribution capacity, more frequent and costly disruptions to the grid due to extreme weather events are further compromising reliability. More than 180 major disruptions occurred in 2020 compared to fewer than two dozen in 2000, federal data show.<\/p>\n<p>If all of that weren\u2019t enough to wipe the grin off Reddy\u2019s face, bottlenecks in the electrical infrastructure supply chain and a dearth of domestic suppliers are slowing efforts to modernize and expand the nation\u2019s century\u2011old grid, with waits of two years for large power transformers, a key grid component.<\/p>\n<p>Michael Galyen, vice president of technology and compliance for MHI member Concentric, a national distributed power services organization delivering resilient and sustainable facility power systems for forklift mobility and critical infrastructure, said all the trends could add up to a future much different from the past.<\/p>\n<p>&#8220;The net result is that we certainly have the potential for less reliable, less available and more expensive power than we\u2019ve ever had,&#8221; Galyen said.<\/p>\n<p>A new report by the Council of Supply Chain Management Professionals (CSCMP), sponsored by MHI and the Warehouse Education and Research Council (WERC), warns that electrical grid planners are concerned the power\u2011on\u2011demand system the U.S. has come to take for granted could soon become a &#8220;supply\u2011driven&#8221; system where &#8220;to switch something on you must first switch something off.&#8221;<\/p>\n<p>&#8220;Driven by growth in demand from multiple sources, this could happen even without the impact of an extensive and rapid energy transition,&#8221; the report, &#8220;The Supply Chain Risks of the Energy Transition: A Blueprint for U.S. Action,&#8221; continued.<\/p>\n<h4>Alphabet Soup of Solutions<\/h4>\n<p>The silver lining is that nobody is sitting on their hands waiting for the grid to fail. Electric utilities and end users in material handling and supply chain alike are taking a proactive approach and investing in solutions to mitigate potential risks posed by an increasingly fragile electrical system infrastructure.<\/p>\n<p>Commercial and industrial end users are shielding themselves from power outages, brownouts and power quality issues by building their own generation and energy storage systems and installing kicked\u2011up building management systems to help improve the efficiency and reliability of their power supply.<\/p>\n<p>Utilities, meanwhile, are investing in advanced metering technologies that allow them to spot problems early enough to avoid overloading the grid by working with their customers to manage demand for power effectively in order to stabilize the grid and maximize its capacity.<\/p>\n<p>The solutions include an alphabet soup of acronyms\u2014DER, AMI, DG, WEMS, ESS, EV, BMS, PV, DR, PPA, BESS and more\u2014that together spell out a major makeover in the way the grid works and offer hope for relief from the looming power supply crisis outlined in the CSCMP\u2019s 82\u2011page report published in October.<\/p>\n<p>Among the most significant transformations is the rise of distributed energy resources (DERs)\u2014solar photovoltaic cells (PV), wind turbines, battery energy storage systems (BESS), electric vehicles (EVs) and microgrids, for example\u2014that ensure reliable power to facilities and can also enhance grid stability.<\/p>\n<p>A U.S. Department of Energy study estimates the generating capacity of DERs will grow 262 gigawatts from 2023 to 2027, nearly matching the 271 gigawatts in expected additions to bulk utility\u2011scale generation and adding significantly to the current total U.S. generating capacity of about 1,300 gigawatts.<\/p>\n<h4 tabindex=\"0\">Boom in Microgrids<\/h4>\n<p>Microgrids, incorporating distributed generation (DG) with an energy storage system (ESS) and load management capabilities, are mushrooming as continuing advances in storage solutions improve their viability as an option for commercial and industrial users looking to ensure power quality and availability.<\/p>\n<p>At its parts distribution facility in Greene, New York, MHI member The Raymond Corp. currently uses a solar photovoltaic (PV) microgrid with a backup battery storage system to serve its electric forklift fleet and other facility needs and plans to add an EV fleet for daily parts deliveries to its nearby forklift plant.<\/p>\n<p>From its vantage point as the manufacturer\u2014alongside sister company and MHI member Toyota Material Handling Material Handling, Inc.\u2014of one of every three forklifts sold in North America, Raymond has seen customer interest in DERs explode, said Damon Hosmer, general manager of energy storage solutions.<\/p>\n<p>&#8220;We\u2019re seeing a huge influx in California, Oregon and Washington state, especially with the cold storage providers right now,&#8221; said Hosmer, citing reliability, sustainability and cost management as key drivers. &#8220;They are looking for ways to offset (grid power) and incorporate renewables, whatever it may be.&#8221;<\/p>\n<p>Because EVs are especially well\u2011suited to last\u2011mile delivery and other applications that involve short routes, Raymond is also noticing significant growth in microgrids around major ports like Long Beach, where Hosmer recently visited a trans\u2011loading facility that is trying to use 100% carbon\u2011free electricity to power its drayage equipment.<\/p>\n<p>TMHNA also recently installed a solar\u2011powered microgrid at its manufacturing campus in Columbus, Indiana, and MHI member Southworth International Group Inc. (SIGI) this year will complete a new solar PV installation expected to supply 100% of power for its North American manufacturing site in Arkansas.<\/p>\n<p>Both are examples of microgrids that will not only enhance reliability and lower energy costs, but also help meet corporate sustainability goals by reducing each company\u2019s greenhouse gas (GHG) emissions\u2014in SIGI\u2019s case halving its Scope 1 and 2 emissions from direct operations and purchased energy inputs.<\/p>\n<p><em><a href=\"https:\/\/www.mhisolutions-digital.com\/mhiq\/0125_volume_13__issue_1\/MobilePagedArticle.action?articleId=2030580&amp;app=false#articleId2030580\">Click here to read the full feature.<\/a><\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Feature From charging forklift batteries and electric vehicles to running conveyors and keeping the lights on, modern, clean supply chains depend on an uninterrupted supply of power from America\u2019s electrical grid. But demand for power and other factors are testing the grid\u2019s reliability like never before, sending users scrambling for solutions to ensure access to &#8230;<\/p>\n","protected":false},"author":40,"featured_media":7694,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,10,14],"tags":[3935,3938,3936,2097,3937,442,1902,1907,3939,3940,466,441],"class_list":["post-7693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-article","category-industry-trends","category-sustainability","tag-electric-grid","tag-electric-vehicles","tag-electricity","tag-emerging-technology","tag-forklift-batteries","tag-mhi-solutions","tag-mhi-solutions-magazine","tag-mhisolutionsmag","tag-power-demand","tag-power-grid","tag-supply-chain","tag-supply-chain-innovation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Thinking Outside the Grid - MHI Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mhisolutions-digital.com\/mhiq\/0125_volume_13__issue_1\/MobilePagedArticle.action?app=false&cmsId=4239339\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Thinking Outside the Grid - MHI Solutions\" \/>\n<meta property=\"og:description\" content=\"Feature From charging forklift batteries and electric vehicles to running conveyors and keeping the lights on, modern, clean supply chains depend on an uninterrupted supply of power from America\u2019s electrical grid. 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