Industrial electrification is gaining momentum in Belgium. The technologies required to reduce fossil fuel consumption are increasingly available, from electric boilers and industrial heat pumps to battery storage and renewable energy. Yet technology alone will not make electrification successful. For industrial companies, the real challenge is to integrate these technologies into complex production environments while safeguarding reliability, competitiveness and product quality. This requires a broader approach, one that combines electrification with flexibility, real-time data and intelligent control. In a recent interview with Solar & Storage Magazine, Entras co-founder and CFO Jeroen Vanfraechem discussed the progress of industrial electrification in Belgium, the main obstacles that remain and why companies should start investing in digitalisation today.
Electrification is about more than replacing gas with electricity
In energy-intensive industries, electricity is only part of the picture. A large share of industrial energy consumption is related to heat, which is still predominantly produced using natural gas. Simply replacing a gas-fired boiler with an electric alternative will therefore rarely result in a convincing business case. The value of electrification depends on how, when and under which market and operational conditions electric assets are used. Electric boilers, heat pumps, thermal buffers and batteries create new possibilities, but also introduce additional complexity. Their operation must be aligned with production requirements, electricity prices, grid tariffs, contracted capacity and the availability of renewable energy.
The central question is not only whether an industrial process can be electrified. Companies must also determine how that process can be operated economically within a constantly changing energy system.
Flexibility turns electrification into an opportunity
Renewable energy production is inherently variable. At certain moments, large volumes of wind and solar power enter the system, resulting in low or even negative electricity prices. At other times, renewable production is limited and electricity becomes significantly more expensive. Industrial flexibility allows companies to respond to these fluctuations. Where operational processes permit it, electricity consumption can be increased during favourable periods and reduced or postponed when prices or grid pressures are high.
Electrification and flexibility are therefore closely connected. Electrification creates new controllable electricity demand, while flexibility determines whether that demand can be used at the most advantageous moments. This is particularly relevant for industrial heat. A company may produce heat when electricity is abundant and store it in a buffer for later use. A hybrid installation can switch between different energy sources depending on current prices, technical constraints and production needs.
However, these decisions cannot be made effectively based on electricity prices alone.
Industrial energy management must look at the complete system
Many energy management solutions still focus primarily on electricity. For industrial environments, this approach is often insufficient. An industrial site is an interconnected energy system. Electricity, gas, steam, heat, cooling, storage installations and production processes continuously influence one another. Optimizing one component without considering the rest of the system can shift costs rather than reduce them.
A battery may generate revenue through energy trading, for example, but simultaneously increase grid costs by creating new consumption peaks. An electric boiler may benefit from low electricity prices but remain uneconomical if it is operated without considering thermal demand, contracted capacity or alternative heat production. A reliable business case must therefore include the entire energy system and all relevant cost components, not only wholesale electricity prices, but also grid tariffs, capacity charges, taxes, operational restrictions and equipment performance.
Digitalization makes complexity manageable
This is where digitalization becomes essential. To operate an industrial energy system intelligently, companies first need to understand how energy flows through their site. This requires accurate measurements, reliable data infrastructure and a digital representation of the installations and their operational constraints. A digital twin can bring this information together. By modelling electricity, heat, steam, storage and production assets as one integrated system, companies can simulate different technologies and operating strategies before making major investments.
Once connected to real-time data, the same model can support the actual control of energy assets. It can continuously evaluate factors such as:
- Current and forecasted energy prices
- Production schedules and process requirements
- Grid capacity and peak consumption
- The state of charge of batteries and thermal buffers
- Technical limitations of individual installations
- The availability of renewable energy
The objective is not to maximize the performance of one asset in isolation. It is to optimize the total energy cost of the industrial site while respecting every operational boundary.
Hedging does not eliminate real-time exposure
One persistent misconception is that companies are no longer exposed to volatile energy markets once they have purchased electricity through a forward contract. Hedging can reduce financial risk, but it does not remove the physical impact of real-time energy consumption. Imbalances, spot-market conditions, grid costs and capacity-related charges can still influence the final energy bill.
The same applies to investments in batteries or electrified heat production. A business case based exclusively on expected market revenue may look attractive, but it can quickly deteriorate when additional grid costs are included. Industrial energy optimization must consequently combine procurement, real-time operation and infrastructure costs. Treating these elements separately can result in incomplete calculations and disappointing outcomes.
Start small, but start now
Industrial electrification does not need to begin with a complete factory transformation. A focused first project can already provide valuable insights. Companies may start with an electric boiler, a thermal buffer, an industrial heat pump, a battery or one flexible production process. By measuring and monitoring the installation, teams can see how it interacts with the wider energy system and what it delivers in practice. This approach makes flexibility tangible. Instead of discussing theoretical market opportunities, companies can observe what happened during a specific day. When an asset operated, which constraints affected it and how much value was created.
These initial projects also help organizations build the internal knowledge required for larger investments. Energy managers, engineers, production teams and financial decision-makers develop a shared understanding of both the opportunities and the limitations.
Confidence grows through experience and experience begins by taking a first step.
From individual projects to an integrated energy strategy
Belgian industry still faces important external challenges. Grid infrastructure must expand more quickly, permitting procedures need to become more efficient and the relationship between electricity and gas prices must support rather than discourage electrification.
Nevertheless, industrial companies do not have to wait until every market condition is perfect. They can already improve their metering infrastructure, map energy flows, identify flexible processes and evaluate electrification scenarios. They can investigate where thermal storage, hybrid installations or demand shifting could generate value. Most importantly, they can begin developing the digital foundation needed to manage a more complex energy system.
The industrial energy transition will not happen through electrification alone. It will depend on the ability to measure, model and control energy across the entire production site. The technology is available. The next step is to make it work within industrial reality.
Ready to identify your first step?
Entras helps energy-intensive companies evaluate electrification and flexibility opportunities across their complete energy system. Using industrial expertise, digital twin technology and real-time control, we turn complex energy decisions into practical and measurable results.
Whether you are exploring an initial electrification project or looking to optimize an existing energy installation, the best moment to start building insight and experience is today.
