PowerShift: Optimizing Energy Consumption in Production
Energy prices increasingly vary significantly within a single day. For manufacturing companies, this means one thing: it's no longer enough to buy energy wisely. You also need to know when to use it.
PowerShift helps you combine your energy procurement strategy with the daily planning of energy-intensive processes.
PowerShift helps you combine your energy procurement strategy with the daily planning of energy-intensive processes.
Why do manufacturing companies need more than just good energy prices today?
For years, conversations about energy costs began with questions like:
This remains important. But with the increasing volatility of hourly prices, a second question arises:
not only: how much do we buy energy for, but also: when should we really use it?
If a company can even partially shift the operation of energy-intensive processes – installations, furnaces, compressors, pumps, cooling plants or technological lines – the cost of energy is no longer solely the effect of the purchase price.
It also becomes the result of an operational decision.
This is where PowerShift's role comes in: combining energy purchasing strategy with daily plant planning.
- How much do we have contracted?
- At what price?
- For what period?
- Should we buy now or wait?
This remains important. But with the increasing volatility of hourly prices, a second question arises:
not only: how much do we buy energy for, but also: when should we really use it?
If a company can even partially shift the operation of energy-intensive processes – installations, furnaces, compressors, pumps, cooling plants or technological lines – the cost of energy is no longer solely the effect of the purchase price.
It also becomes the result of an operational decision.
This is where PowerShift's role comes in: combining energy purchasing strategy with daily plant planning.
The problem is not a lack of data
Most industrial companies today have access to vast amounts of data: invoices, consumption profiles, hourly market prices, contracts, meter readings, production constraints, and work schedules.
The problem is that this data often isn't integrated into a single decision-making process.
As a result, a company may purchase energy efficiently but consume it at times that are far from optimal from a total cost perspective.
The company may also notice low or even negative hourly market prices but still lack a quick answer to the question: Is it worth shifting production to those hours?
The problem is that this data often isn't integrated into a single decision-making process.
- The procurement team sees the market and contracts.
- Production sees the production plan and technological constraints.
- Controlling sees the costs, but often only after the fact.
- Management sees the final results, but not always the operational decisions that led to them.
As a result, a company may purchase energy efficiently but consume it at times that are far from optimal from a total cost perspective.
The company may also notice low or even negative hourly market prices but still lack a quick answer to the question: Is it worth shifting production to those hours?
PowerShift helps you make decisions, not just look at data
PowerShift is a decision-support tool that helps answer critical operational questions:
Until now, decisions like these have often relied on experience, spreadsheets, phone calls between departments, and hindsight analysis.
PowerShift brings decision-making closer to the point where energy costs are actually incurred, enabling faster, more informed operational decisions.
- Should I run this process now or wait a few hours?
- Should I take advantage of a low day-ahead market price if it could increase my capacity fee?
- Do I still have a safe consumption margin?
- Is my production plan cost-efficient not only on paper, but also when the full cost of energy is taken into account?
Until now, decisions like these have often relied on experience, spreadsheets, phone calls between departments, and hindsight analysis.
PowerShift brings decision-making closer to the point where energy costs are actually incurred, enabling faster, more informed operational decisions.
Why is this important right now?
Screenshot from the PowerShift module in Enerace.Online
The energy market has evolved from a relatively predictable environment into one that increasingly rewards flexibility.
Within a single day, electricity prices may be exceptionally high, exceptionally low, or even negative. At the same time, the importance of the consumption profile, distribution costs, capacity fees, and the quality of energy purchasing decisions continues to grow.
For a manufacturing company, this means one thing: the average energy price alone is no longer enough.
What matters is the total cost over time, i.e. how they meet each other:
PowerShift combines these areas into a single decision-making model.
Within a single day, electricity prices may be exceptionally high, exceptionally low, or even negative. At the same time, the importance of the consumption profile, distribution costs, capacity fees, and the quality of energy purchasing decisions continues to grow.
For a manufacturing company, this means one thing: the average energy price alone is no longer enough.
What matters is the total cost over time, i.e. how they meet each other:
- energy purchasing strategy,
- hourly prices and market signals,
- limitations of the production process,
- consumption profile affecting, among others, the capacity fee.
PowerShift combines these areas into a single decision-making model.
Energy procurement strategy must extend beyond the boardroom and onto the production floor
A good energy procurement strategy doesn’t end when the contract is signed.
Whether a company hedges part of its energy demand through tranches, leaves some exposure to the spot market, or follows a hybrid procurement model, the actual cost of energy depends not only on how it is purchased, but also on when it is consumed.
In many organizations, these two worlds remain disconnected. The procurement strategy exists in reports and management decisions, while production is driven by schedules, technical constraints, and equipment availability.
PowerShift acts as a bridge between these worlds. It doesn't replace the strategist, planner, or operator. It provides them with a common language.
PowerShift shows:
In practice, a purchasing strategy ceases to be a document and becomes a tool for everyday management.
Whether a company hedges part of its energy demand through tranches, leaves some exposure to the spot market, or follows a hybrid procurement model, the actual cost of energy depends not only on how it is purchased, but also on when it is consumed.
In many organizations, these two worlds remain disconnected. The procurement strategy exists in reports and management decisions, while production is driven by schedules, technical constraints, and equipment availability.
PowerShift acts as a bridge between these worlds. It doesn't replace the strategist, planner, or operator. It provides them with a common language.
PowerShift shows:
- which hours are the most cost-effective for energy-intensive operations,
- how hedged volumes and day-ahead market prices affect the profitability of production,
- how the consumption profile influences capacity fees,
- where the safe operating margin ends and higher-cost scenarios beg
In practice, a purchasing strategy ceases to be a document and becomes a tool for everyday management.
The greatest value lies not in automation, but in better decisions
When we talk to customers, the first question is rarely, "Does the system have this feature?"
Instead, the conversation quickly turns to operational questions:
These questions highlight an important reality: manufacturing doesn't need more dashboards, it needs better decisions made at the right time.
PowerShift helps answer questions such as:
The last question is particularly important.
Sometimes intuition says, "Let's not exceed the threshold." But the math might tell us something different: if the energy price is low enough, or even negative, the higher capacity charge might be less important than the benefit of working that hour.
PowerShift doesn't assume that you always have to avoid a higher K. It compares the total cost.
This is the difference between a simple rule and real optimization.
Instead, the conversation quickly turns to operational questions:
- Will operators know what to do?
- Will production understand why it's worth shifting certain processes?
- Will controlling be able to measure the actual savings?
- Will management understand where the differences in energy costs come from?
- Can we avoid situations where a seemingly cost-efficient production plan ends up increasing capacity fees?
These questions highlight an important reality: manufacturing doesn't need more dashboards, it needs better decisions made at the right time.
PowerShift helps answer questions such as:
- How much flexible energy consumption can we realistically shift?
- Which hours are the most cost-effective for production?
- What will the total cost of the current production plan be compared with alternative scenarios?
- Is exceeding the K threshold a mistake, or is it a deliberate decision that lowers the overall energy cost despite a higher capacity fee?
The last question is particularly important.
Sometimes intuition says, "Let's not exceed the threshold." But the math might tell us something different: if the energy price is low enough, or even negative, the higher capacity charge might be less important than the benefit of working that hour.
PowerShift doesn't assume that you always have to avoid a higher K. It compares the total cost.
This is the difference between a simple rule and real optimization.
Who does PowerShift make the most sense for?
PowerShift is particularly valuable for companies that have energy-intensive processes and at least some flexibility in working hours.
This doesn't necessarily mean complete production freedom. It's enough that some consumption can be shifted, accelerated, delayed, or scheduled within specific time windows.
The greatest potential appears where furnaces, mills, compressors, cooling towers, pumps, crushers, batch processes, auxiliary lines, installations with high power consumption or processes that can be buffered operate, among other things.
PowerShift isn't a solution for a single sector. It's an approach for companies that want to integrate energy management with actual plant operations—treating energy not just as a cost on an invoice, but as an operational variable.
This doesn't necessarily mean complete production freedom. It's enough that some consumption can be shifted, accelerated, delayed, or scheduled within specific time windows.
The greatest potential appears where furnaces, mills, compressors, cooling towers, pumps, crushers, batch processes, auxiliary lines, installations with high power consumption or processes that can be buffered operate, among other things.
PowerShift isn't a solution for a single sector. It's an approach for companies that want to integrate energy management with actual plant operations—treating energy not just as a cost on an invoice, but as an operational variable.
PowerShift as part of the Enerace ecosystem
PowerShift is one element of the broader Enerace ecosystem.
1. Enerace.Online supports energy procurement monitoring, contract positions, market reports, tranche management, and decision recommendations.
2. Enerace Consultants help build strategies, interpret market conditions, and support energy purchasing decisions.
3. PowerShift operates one level deeper—at the level of production planning and on-site energy consumption.
This enables clients to combine three perspectives:
market → procurement strategy → operational energy consumption
This is important because an increasing share of value is created at the intersection of strategy and operations. A sound purchasing decision can be strengthened by an optimized production plan, while operational data can, in turn, improve the quality of future market decisions.
PowerShift is not a technological add-on. It is the missing link between what a company purchases and how much energy it actually consumes.
1. Enerace.Online supports energy procurement monitoring, contract positions, market reports, tranche management, and decision recommendations.
2. Enerace Consultants help build strategies, interpret market conditions, and support energy purchasing decisions.
3. PowerShift operates one level deeper—at the level of production planning and on-site energy consumption.
This enables clients to combine three perspectives:
market → procurement strategy → operational energy consumption
This is important because an increasing share of value is created at the intersection of strategy and operations. A sound purchasing decision can be strengthened by an optimized production plan, while operational data can, in turn, improve the quality of future market decisions.
PowerShift is not a technological add-on. It is the missing link between what a company purchases and how much energy it actually consumes.
What are we hearing from the market?
One of the most interesting insights from recent conversations with clients and prospects is that PowerShift requires very little explanation.
Those responsible for production, energy, and finance understand its value almost immediately.
Typical reactions include:
This is an important signal.
Because the best tools do not start with features—they start with a problem the customer already recognizes.
And the problem many manufacturing companies face today is very clear:
We know that energy is expensive. We know that markets are volatile. We know that we have some operational flexibility. But we lack a simple process that tells us how to value and use that flexibility on a day-to-day basis.
PowerShift is the answer to that need.
Those responsible for production, energy, and finance understand its value almost immediately.
Typical reactions include:
- “This is a very practical tool.”
- “This is the missing link between energy and production.”
- “This can help operators make better decisions.”
This is an important signal.
Because the best tools do not start with features—they start with a problem the customer already recognizes.
And the problem many manufacturing companies face today is very clear:
We know that energy is expensive. We know that markets are volatile. We know that we have some operational flexibility. But we lack a simple process that tells us how to value and use that flexibility on a day-to-day basis.
PowerShift is the answer to that need.
It is not about production being subordinated to energy
PowerShift does not suggest: “produce only when energy is cheap.”
Such an approach would be disconnected from industrial reality. Production is constrained by orders, deadlines, process technology, quality requirements, workforce availability, shift structures, warehouse capacity, and logistics.
The goal of PowerShift is not to subordinate production to the energy market.
The goal is to identify the best possible operating plan within the real constraints of the plant.
This is why a multi-variable decision model is necessary.
Such an approach would be disconnected from industrial reality. Production is constrained by orders, deadlines, process technology, quality requirements, workforce availability, shift structures, warehouse capacity, and logistics.
The goal of PowerShift is not to subordinate production to the energy market.
The goal is to identify the best possible operating plan within the real constraints of the plant.
- It is not always possible to shift significant volumes.
- It is not always worth shifting everything.
- The lowest hourly price is not always the best decision.
- The lowest K-factor does not always result in the lowest total cost.
This is why a multi-variable decision model is necessary.
From cost control to operational advantage
Manufacturing companies will increasingly win not by simply purchasing energy more cheaply, but by better integrating energy procurement, market data, and operational flexibility.
Energy is no longer just a cost to be accounted for. It is becoming a core element of daily operations, production planning, and rapid response to market conditions.
PowerShift enables this shift in practice, not through static reports or retrospective analyses, but by clearly indicating when, how much, and why it is worth using available flexibility.
Energy is no longer just a cost to be accounted for. It is becoming a core element of daily operations, production planning, and rapid response to market conditions.
PowerShift enables this shift in practice, not through static reports or retrospective analyses, but by clearly indicating when, how much, and why it is worth using available flexibility.
Summary: Why was PowerShift created?
PowerShift was created because industrial companies today need more than a well-designed energy procurement strategy. They need a tool that translates that strategy into day-to-day production decisions, taking into account hourly prices, contracts, production constraints, and capacity fees.
The question is no longer only: how much do we pay for energy?
Increasingly, the key question is: when should we use energy to minimize total cost?
PowerShift is our answer.
And everything indicates that this is a response to a problem the market is recognizing more and more clearly.
Want to see if your company can leverage production flexibility to reduce energy costs? Let’s talk about PowerShift and its potential in your facility.
The question is no longer only: how much do we pay for energy?
Increasingly, the key question is: when should we use energy to minimize total cost?
PowerShift is our answer.
And everything indicates that this is a response to a problem the market is recognizing more and more clearly.
Want to see if your company can leverage production flexibility to reduce energy costs? Let’s talk about PowerShift and its potential in your facility.
FAQ: PowerShift and Optimization of Energy Consumption in Manufacturing
1. What is PowerShift?
PowerShift is a decision-support tool for manufacturing plants that combines data on energy prices, contracts, and production constraints to optimize the cost of energy consumption over time.
2. How does PowerShift help reduce energy costs in manufacturing?
PowerShift analyzes not only the purchase price of energy, but also the timing of consumption, load profiles, and capacity charges. This makes it possible to identify the hours and operating scenarios with the lowest total energy cost.
3. Who is PowerShift for?
PowerShift is designed for industrial companies with energy-intensive processes that have at least partial flexibility in production scheduling or energy consumption.
4. How does PowerShift support collaboration between departments?
PowerShift creates a shared view of reality for procurement, production, controlling, and management teams, ensuring that operational decisions are based on the same data and cost models.
5. Does PowerShift operate in real time?
PowerShift supports operational decision-making based on up-to-date market and production data, enabling scenario analysis in short time horizons.
Author: Wojciech Nowotnik, Consultant
