In the quest for environmental sustainability, the dialogue surrounding carbon tracking and Environmental, Social, and Governance (ESG) goals is more vibrant than ever. Industries across the globe are on a mission to diminish their carbon footprint and bolster their sustainability efforts. An interesting example of this is how electrical production facilities use smart metering infrastructure to track their carbon emissions. This initiative, aimed at enhancing the understanding and management of Scope 1 and Scope 2 greenhouse gas (GHG) emissions, offers a glimpse into how companies can leverage automation to meet their ESG objectives. The recent ISA joint Connect Live session held in Feb titled "Carbon Emissions Tracking and Smart Metering in Power Infrastructure" with ACARD and POWID divisions shed light on how members have implemented such a program at their facilities. This article delves into exploring the challenges and potential solutions discussed during the Connect Live session.
Figure 1: Illustration of Emission and Warming Levels from Climate Action Tracker Website
The Challenge of Carbon Accounting
At the heart of environmental management lies the challenge of carbon accounting. According to the Climate Action Tracker (see figure 1), an independent institute that assesses climate change mitigation targets and actions, emission and warming levels remain a significant challenge. For electrical production facilities, striving to minimize their environmental impact and accurately quantifying carbon emissions is paramount. The task, however, is anything but straightforward. The GHG protocol corporate standard defines Scope 1 as emissions originating from direct sources owned or controlled by the company, and Scope 2 as emissions stemming from the generation of purchased energy. Scope 3 emissions are emissions that take up a company's holistic value chain and are hence a lot more complex to calculate. These emissions, influenced by myriad external factors, necessitate a holistic management approach.
Leveraging Smart Metering for Real-Time Insights
Smart meters are advanced devices/sensors that measure energy consumption in real-time and record data at regular intervals. In contrast to traditional meters that need manual readings and may lead to estimated billing, smart meters offer accurate and real-time data directly to the energy provider. This real-time data capture is crucial for accurate carbon accounting as it reflects the actual energy usage and the associated emissions without the delays or inaccuracies that come with manual processes. The traditional process for tracking energy consumption is labor-intensive, relying on manual reviews of utility invoices and complex spreadsheet formats. The smart metering project has streamlined this process (see figure 2) by automating data collection and analysis. This not only saves time and reduces the potential for human error but also makes the entire carbon accounting process more manageable for the facilities.
Figure 2: Flowchart illustrating typical process of data collection from smart meters to data analysis for carbon tracking and ESG goals.
Leveraging IoT and Edge Computing
The integration of Internet of Things (IoT) and edge computing technologies has been instrumental in improving carbon tracking and estimation. By deploying smart meters (you can think of them as edge devices) across facilities, automation engineers are able to gather real-time data on energy consumption and emissions. Edge computing further enhances this capability by processing data closer to its source, minimizing latency, and enabling faster decision-making. This technological synergy not only simplifies carbon tracking but also sets the stage for more efficient and sustainable operations.
The Role of AI in Enhancing Carbon Estimation
Artificial Intelligence (AI) models have emerged as a powerful tool for refining carbon estimation and advancing ESG goals. These models can analyze both historical and real-time data to forecast emissions trends, identify areas for improvement, and suggest carbon reduction strategies. However, the foundation of accurate data collection and analysis must be established before leveraging AI. Ensuring data integrity and addressing privacy and security concerns are critical steps in integrating AI into carbon tracking and ESG initiatives.
Understanding the Social Cost of Carbon
The social cost of carbon (SCC) is a critical metric that quantifies the economic damages associated with a metric ton of carbon dioxide emissions. Smart metering and automation play a significant role in influencing the Social Cost of Carbon (SCC) by enhancing the efficiency of energy use and reducing carbon emissions. The broader adoption of smart metering and automation technologies can lead to substantial reductions in carbon emissions, which is directly reflected in a lower SCC. By providing tools and data needed to make more informed energy use decisions, these technologies help align economic activities with environmental sustainability goals. Moreover, the data collected through smart meters can be used to better understand consumption patterns and potentially influence future infrastructure planning and energy policies aimed at reducing carbon emissions. This data can be fed into higher level dynamic pricing models at the energy suppliers billing management systems thereby allowing to quantify the overall SCC estimation process.
Collaborative Efforts and Future Directions
The implementation of smart metering at production facilities is a collaborative effort involving various departments within the company, including engineering, facilities, business optimization, and finance. This cross-functional team meets regularly to discuss emissions data, sustainability efforts, and strategies to address any anomalies in energy usage. The ultimate goal is to decrease energy consumption and reduce the company's carbon footprint effectively.
Conclusion
Achieving sustainability in power and steam production facilities is a multifaceted challenge that requires a comprehensive approach. These findings highlight the significance of precise carbon tracking, the possibilities offered by IoT and edge computing, the contribution of AI, and the effects of the social cost of carbon. By adopting these technologies and principles, companies can make well-informed choices that support their ESG objectives, leading to a more sustainable and robust future.
How do you see automation achieving sustainability goals at your facilities? Feel free to share your thoughts in the comment box below.