Research advances have enabled new technologies such as variable speed drives to replace traditional and less efficient process equipment. As such, industrial processes are undergoing electrification, and are having a growing impact on the on-site electrical distribution system and the transmission network. This thesis aims to explore the implications of this growing impact. Combined with policies on renewable sources, there are concerns regarding the reliability of electrical supplies. An electrical contingency can lead to unwanted plant shut-downs. This impacts production and profitability, and can have safety and environmental consequences.

The above challenges will require industrial plants to operate in a flexible manner. Flexible operation allows an industrial plant to manage its distribution system more effectively, while helping the transmission network maintain stability. This is done by modifying process set-points to reduce or increase power consumption in response to a signal. By means of process and electrical modelling, this thesis investigates the feasibility of an industrial plant to adopt flexible operation within an Industrial Smart Grid context.

The novel contributions are the development of a methodology to quantify the flexible operation capability of an industrial plant by analysing the on-site safety and interlock system, and a framework to develop flexible operation strategies by combining results from contingency analysis, load flow calculations and process modelling. By analysing relevant documentation, this thesis identifies opportunities and provides recommendations for industrial plants to offer their flexibility as a paid-for service in the reserves market, and proposes an optimisation model which can be used to ascertain the price for offering such services.

The main finding of this thesis is that it is feasible for processes to operate flexibly. It also shows that industrial plants can benefit from better power management on-site, and potentially gain additional profit by providing frequency reserve services to the transmission system operator.