Managing Foundry Electricity

Managing electricity is a very essential task for any foundry and this can be started efficiently by saving each component cost represented in electricity bill in an efficient way. For achieving this it is essential to have a complete knowledge of each component represented in the electricity bill. The four important components represented in the electricity bill are consumption charge, demand charge, power factor charge and inducements. Let us discuss each of these components representation and how to save each of these costs in an efficient manner.

Elements of Electricity Bill: Consumption Charge:

Consumption charge in electricity bill refers to consumption of electrical energy which is expressed in units of KWh multiplied by tariff rate. The consumption charges also include various other additional charges depending on the usage of electricity by the foundry. Some to name demand charges, fixed charges, customer charges and FSA known as Fuel Surcharge Adjustment and so on.

Guidelines for Reducing Consumption Charge:

Proper management would help in reducing the consumption charges. Some of the guidelines that could be used for reducing the consumption charges are as below:

  • By taking proper plans and reducing the consumption of electricity that is reducing the KWh units consumed results in consumption charge getting reduced
  • Making use of the benefit costs. For instance by making consumption in the period of lower cost that is by operating in the model of shift basis
  • Lowering the non productive idle time consumption of electricity.

Demand Charge:

Demand for power level used in a foundry at different period in a day is not constant and it varies. This is because demand varies depending on the electric equipment operated. Some may require high demand and some may require lower than that. The peak demands required in a foundry is the maximum power level used which is represented in kW or kVA. This is obtained by measuring the demand usage at regular intervals consistently. By recording demand usage in a foundry at regular intervals it is possible to obtain the peak demand and would enable to set the demand rate needed by the foundry for the coming periods. The demand rates would be calculated and supply of electricity to the foundry would be managed by the provider based on this.

Guidelines for Reducing Demand charge:

Since peak demand is the maximum component required by the foundry for usage by taking steps to reduce this would enable the foundry to have good cost cutting in demand charge. The peak demand can be used efficiently by load-shedding for instance by reducing the usage of unwanted electric equipments, load-shifting for instance by using shift model operations that is when usage can be made efficiently with cost reduction, making process changes for effective utilization of electricity.

Power Factor Charge:

Power Factor Charge refers to the additional penalty charges made by electricity providers if customers to not use electric power provided efficiently. Rather drop in efficiency is directly proportional to the increase in penalty cost. It is essential that effective proper plans must be made for the usage of power efficiently.

Guidelines for Reducing Power Factor Charge:
  • By using power efficiently
  • Having good control on highly inductive loads
  • By installing capacitors


Trying different consumption by operating on multi shift operations, by achieving effective load factor, trying different models of production schedule all these would have significant effect in the cost of electricity bill

More Info Hub

Enviornmental Issues

In depth analysis of industry process, recycling, and environmental issues of the cast metals industry.Know More

Major Casting Components

Major casting components including Automobile Casting Equipments, Pumps and Valves Components.Know More

New Technology Research

Latest manufacturing technology research in production, manufacturing engineering and management.Know More

Casting Applications

All about industrial applications of metal casting technologies in Automobile, Industrial Machinery.Know More