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Why Centralized Generation of Electricity is Important for Industrial Parks

Two electrical towers
    January 6, 2020

 

Why is the centralized generation of electricity important for industrial parks?

  1. Modern electric grids are reliable and cost-effective
  2. Industrial parks have their own electric infrastructure

One of the advantages of locating your business in an industrial park is the availability of reliable electricity. This is thanks to a centralized electric grid that not only benefits industrial consumption, but also commercial and residential use. Many, if not most light and medium industries rely heavily on a consistent supply of energy for their respective business processes and operations. Being part of an electric grid is proving to be indispensable.

Continue reading to find out more about centralized generation of electricity. Learn how industrial parks, such as the ones developed by Science Park of the Philippines, are benefitting from it.

Modern Electric Grids Are Reliable and Cost-effective

Close up of a light bulb

Centralized generation of electricity refers to the large-scale energy production from different sources, whether renewable or nonrenewable. The electricity is distributed through a large grid or network that includes different components from generation to consumption. The whole purpose of having a grid is to meet the electricity demand of an area in the most consistent way possible. Grids make use of infrastructure to distribute energy because facilities that generate electricity are usually situated in locations away from consumers.

Thanks to advancements in technology, the modern electric grid is now more reliable and cost-effective than ever. Multiple generators, power plants, and sources of energy are allowed to provide electricity to consumers simultaneously. They also compete against each other for the best market price. Thanks to that, businesses are having an easier time managing their costs in relation to their energy consumption.

In industrial parks, these advantages are more apparent because there are higher levels of energy consumption. Firms can’t afford to have disruptions in their electric supply because this halts their operations. Industrial parks are also taking advantage of the competition among energy manufacturers, which results in reasonable pricing.

Industrial Parks Have Their Own Energy Infrastructures

Wide shot of an industrial park

Because centralized energy generation relies on infrastructures such as substations, transmission lines, and generators, having more of them can make the whole system more efficient and effective. That being said, industrial parks come equipped with their own substations and transmission lines — another advantage that they provide to their locators. Having independent energy infrastructure is important because it does not leave you vulnerable to the same problems that the other parts of the electric grid are vulnerable to.

For example, one substation provides electricity to both the residential and industrial community in a given area. That means both of them will be affected when that substation suffers an outage or technical problem. Industrial parks have their own generators and energy storage systems. When outages and other similar problems do occur, there will be enough reserved electricity to keep operations going for a set amount of time. Simply put, industrial parks maximize the potential of electric grids by having their own infrastructure.

Electricity In Industrial Parks Going Forward

An asian factory worker on a tablet

The modern electric grid that is predominantly used around the world is already effective at providing energy to industrial, commercial, and residential consumers. However, the increasing scarcity of fossil fuels and climate change pose challenges for energy production in the future. The good news here is that recent innovations in technology are providing potential solutions.

Smart grids are an improvement to existing grid technologies that can possibly address the aforementioned issues. Just like with anything that has the ‘smart’ tag, the incorporation of automation and computer systems can make the entire energy production and distribution process more efficient. Automation also minimizes the chances of human error. The less electricity lost during distribution, the better it will be in terms of long-term sustainability.

Another innovative solution can come in the form of better energy storage systems. Continuous development in energy storage technology has made off-grid electricity use possible, albeit not entirely. When green technologies such as energy storage systems are used with renewable energy and a ‘smarter’ grid, large-scale energy consumption can become even more economical and sustainable.

Key Takeaway

Centralized electric grids are needed to keep society going. However, like most systems, it is also not perfect and has room for improvement. Industrial parks stand to maximize the advantages and minimize the negatives that come with the centralized generation of electricity. This is all for the sake of providing a suitable area for companies and industries to operate in.

Click here to read more about the advantages of situating your company in an industrial park.

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