AI-enabled Energy Demand Forecasting & Tariff Optimization: 94.4% Prediction Accuracy, $447K Annual Savings (Major Cement Manufacturer)

@Faclon Team

November 14, 2025

2min read

About the Company

A major cement manufacturer, part of a global conglomerate, operates with $700M revenue in the cement business and maintains 17+ MTPA total grinding capacity. With an active workforce of 13,128 employees, the company aimed to improve energy forecasting at one of its flagship plants operating under a PPA with a sister company. Frequent fluctuations in energy usage and downtime created a critical need for better prediction accuracy to optimize energy procurement and reduce operational costs.

Problem Statement

Critical operational challenges threatening manufacturing efficiency

Data fragmentation across facilities Critical information scattered across various plants with operational processes relying on manual data entry and paper-based logbooks, causing errors and delays in data availability
Limited real-time operational visibility Absence of integrated systems resulted in lack of real-time insights into key operational metrics, restricting ability to make timely, data-driven decisions
Communication inefficiencies Coordination between departments depended on phone calls and in-person meetings, leading to miscommunication and delays in urgent decision-making processes
Time-sensitive procurement constraints Finalizing energy bids within 45-minute windows due to unplanned downtimes or production schedule changes, with energy constituting significant portion of OPEX

How Faclon Solved the Problem

I/O Sense Platform: Comprehensive Industry 4.0 deployment for energy management and process optimization

Live Operational Machine Integration

Predicting energy demand across various mills and ancillary equipment by analyzing key operational metrics including ON/OFF statuses, machine RPM, temperatures, and grinding pressures

Maintenance Schedule Processing

Capturing both planned and unplanned shutdown events through digital logbooks, with real-time maintenance updates to refine energy predictions and adjust for operational changes

Deep Learning Model Architecture

Proprietary ML model ingesting live machine parameters from equipment SCADA and maintenance downtime schedules to predict energy demand accurately before 45-minute bid closure

Real-time Bid Optimization

System processes 96 fifteen-minute energy slots throughout the day, enabling power procurement teams to submit optimized bids 45 minutes before each slot closing

Historical Data Analytics

Integration of historical machine energy consumption patterns with live operational parameters to enhance prediction accuracy and reduce forecasting errors

Digital Communication Platform

Automated alerts and notifications replacing manual coordination processes, enabling rapid response to operational changes and energy demand fluctuations

The Outcome

Comprehensive results across operational efficiency

Prediction accuracy improvement

Achieved 94.4% forecasting accuracy compared to 72.2% manual prediction methods, significantly reducing energy procurement errors

Cost optimization success

Generated $27,445 weekly savings (adjusted to PPP) through optimized energy procurement, projecting $1.54 million annual savings (adjusted to PPP)

Operational efficiency gains

Eliminated wasted cheaper power sources and costly grid purchases by accurately forecasting energy needs across all 96 daily time slots

Process automation achievement

Replaced manual energy demand prediction methods with automated AI-driven forecasting, reducing human error and improving response times

Real-time decision capability

Enabled power procurement specialists to make data-driven decisions within critical 45-minute bid submission windows

Energy procurement optimization

Achieved optimal balance between PPA energy allocation and grid purchases, minimizing premium rate procurement and maximizing cost-effective energy sourcing

Behind the Scenes

Advanced technical implementation and strategic deployment considerations

Machine Learning Architecture Development

Proprietary deep learning algorithms processing live SCADA data from cement manufacturing equipment, incorporating operational parameters, maintenance schedules, and historical energy consumption patterns

Multi-source Data Integration Platform

Seamless integration of equipment operational metrics, planned maintenance schedules, unplanned downtime events, and historical energy consumption data into unified forecasting model

Real-time Processing Infrastructure

High-performance computing systems enabling continuous data ingestion and processing to deliver accurate predictions within stringent 45-minute bid submission timeframes

Digital Logbook Implementation

Comprehensive digitization of maintenance and operational schedules, replacing paper-based systems with real-time data entry capabilities for immediate model updates

Validation and Accuracy Monitoring

Continuous model performance evaluation comparing predicted versus actual energy consumption, with automated accuracy reporting and model refinement capabilities

Scalable Cloud Architecture

Robust infrastructure supporting real-time data processing from multiple manufacturing units, with secure data transmission and storage capabilities for enterprise-scale operations

Resources to keep you updated

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