UPS systems
A UPS, or Uninterruptible Power Supply, delivers emergency power when the mains supply fails. This factsheet from the Regional Transition Agenda Manufacturing Overijssel breaks down the material value, supply risk and circular revenue models of UPS systems.
What is a UPS system?
A UPS, or Uninterruptible Power Supply, is a device that delivers emergency power when the power source or mains supply fails. A UPS provides near-instant protection against interruptions to the input power, by delivering energy stored in batteries, supercapacitors or flywheels.
Battery duration in most systems is relatively short, just a few minutes, but enough to switch on a standby power source or safely shut down the protected equipment.
Part of: the Regional Transition Agenda Circular Economy Overijssel, manufacturing industry · main project. Commissioned by: Province of Overijssel. Analysis: product footprint, material impact, supply risk and circular revenue models.
Product components
Nine component groups together make up 95% of the total weight. The concrete or steel counterweight weighs the most, while the permanent magnet and switchgear represent the highest value and eco-costs per tonne.
| Component | Weight | Value per tonne | Eco-costs per tonne | Share of eco-costs |
|---|---|---|---|---|
| Concrete or steel counterweight | 48.00% | €288.00 | €13.92 | 1.91% |
| Flywheels (carbon steel and steel alloy) | 16.00% | €800.00 | €74.54 | 10.24% |
| Stator coil | 8.00% | €1,142.86 | €142.56 | 19.58% |
| MV/LV transformer | 8.00% | €4,000.00 | €84.22 | 11.57% |
| Diesel engine | 8.00% | €888.89 | €51.98 | 7.14% |
| Electromagnetic couplings | 5.00% | €1,666.67 | €57.90 | 7.95% |
| Permanent cylindrical magnet | 4.00% | €4,000.00 | €271.60 | 37.31% |
| Switchgear | 2.00% | €8,750.00 | €26.00 | 3.57% |
| Vibration dampers | 1.00% | €500.00 | €5.20 | 0.71% |
Environmental impact and supply risk
Neodymium magnets have the highest environmental impact in this product. Despite the low weight, the impact is very high. Yet this component is precisely what gives such systems a long lifespan. Copper has a relatively high impact, spread across several components.
Energy transition. Neodymium is the most critical raw material and significant for the energy transition. Demand for neodymium is expected to rise by as much as 700%. That makes supply security part of product strategy.
| Raw material | Risk | Explanation |
|---|---|---|
| Neodymium | most critical | significant for the energy transition, demand could rise by 700% |
| Molybdenum | supply security | critical in terms of long-term supply security |
Where is value retained?
There is high potential for value retention in the chain. The more robust components required for temporary energy storage and generation contain valuable metals. In this industry it is common practice to replace non-functioning components, which explains why relatively little to no secondary market has developed for these products.
The value-chain analysis compares the regional economic perspective by chain phase, from new materials to landfill.
| Chain phase | Regional economic perspective (€ millions) |
|---|---|
| Materials (virgin/new materials) | €8.89 |
| Components (new components) | €36.97 |
| Product | €90.60 |
| Reuse (product) | €63.42 |
| Repair (product) | €72.48 |
| Refurbish (product) | €72.48 |
| Remanufacture (secondary components in/for product) | €63.42 |
| Repurpose (components for or as another product) | €45.30 |
| Recycle (materials) | €8.00 |
| Landfill (lost) | €−8.89 |
Revenue models and scores
The greatest potential lies in the performance model: adding smart systems to the product in the medium term for more effective deployment. Most value lies in extending the lifespan of the product and its components.
Opportunities and points of attention for circularity:
- Very high-value systems with a long technical lifespan and a high purchase price.
- Modular in structure: services for replacing and maintaining components are common practice.
- Demand is difficult to plan for. Improved deployment through sharing the product is possible, but not yet desirable since demand is hard to predict.
Product properties that support circularity, scored from 1 (low indication) to 5 (high indication):
| Product property | Score (1–5) |
|---|---|
| Technical lifespan | 5 |
| Price per unit | 5 |
| Frequency of use | 5 |
| Modularity | 4 |
| Recyclability | 3 |
| Product simplicity | 3 |
| Predictability of demand | 1 |
Further reading
This factsheet belongs to the main project on circular revenue models in the Overijssel manufacturing industry and connects to New Economy’s broader services around product footprint and circular design.
Insights from this project
Frequently asked questions
A UPS (Uninterruptible Power Supply) delivers near-instant emergency power when the mains supply fails, using energy from batteries, supercapacitors or flywheels. The bridging period usually lasts a few minutes, enough to switch on a standby power source or safely shut down equipment.
Neodymium is the most critical raw material. It is significant for the energy transition and demand is expected to rise by 700%. The neodymium magnet has the highest environmental impact despite its low weight, and is precisely what gives the system its long lifespan.
UPS systems are high-value and modular, with a long technical lifespan and high purchase price. Services for replacing and maintaining components are common. A secondary market has barely developed, since non-functioning components are typically replaced.
The greatest potential lies in the performance model: adding smart systems in the medium term for more effective deployment. Most value lies in extending the lifespan of the product and its components.
From factsheet to circular strategy
The analysis makes visible where material value, critical raw materials and revenue models converge. Product Footprint and circular design translate these insights into choices in design, procurement, service and reverse logistics.
View Product Footprint