Framework for operational changes to reduce electricity costs in the South African steel industry

摘要

In 2016, South Africa's, steel production was down by 4.5% year-on-year. This was due to both a struggling economy and a world surplus in steel supply. Therefore, in order for South Africa to remain competitive in the global steel market, the current emphasis on cost reduction needs to be maintained. It is thus important for personnel at iron- and steel-manufacturing plants to be aware of the risks associated with electricity costs. There is however a lack of knowledge regarding electricity cost savings and personnel therefore do not have the practical understanding necessary to help them achieve electricity savings. The need therefore exists to establish a framework to identify, prioritise and implement electricity cost reduction in the South African steel-producing environment. Current energy cost reduction strategies focus on large capital expenditure (capex) projects. Steel plants in South Africa have limited capex to spend on energy cost reduction. The focus of this paper will therefore be on opportunities that involve operational changes on steelmaking plants. Many operational changes can be implemented with little or no capex. The impact of these changes can also result in quick benefits. After developing and implementing the framework on a case study plant, a total of R9 907 910 per annum worth of possible savings is identified.