Social manufacturing principles in decentralized electricity generation

Abstract

The principles underpinning Social Manufacturing have been developed in the context of the production of customizable discrete products. However, certain situations exist such that customization is not desirable or even possible. Factors that hinder customization vary considerably. They may include legal issues or consequences of technical standards, among others. In addition to customization of products, another principle underpinning Social Manufacturing is decentralized production. These two principles do not necessarily occur simultaneously. In certain situations, a product cannot be customized but its production is decentralized. The possibilities of extending the application of Social Manufacturing principles to such a context remain unexplored. Electricity generation (production) constitutes a context for such a study. Naturally, electricity is a fully standardized product and cannot be customized. Traditionally, electricity generation has been very centralized but certain recent developments are influencing the industry to become more decentralized. One key development in this regard is the Energy Transition and Decarbonization required to combat global climate change. Consequently, increased use of renewable energy sources results in decentralization of electricity generation. The objective of this study is to explore the possibilities of extending the application of Social Manufacturing principles to a new context. This new context is represented by renewables-based decentralized electricity generation. Electricity generation is an example in which the product cannot be customized but production is decentralized. This analysis encompasses the electricity generation value chain from engineering of equipment to management of electricity generation and grid operation.