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A Growing Need for Backup Power
Ed and Stacy Vega of Austin, Texas, made the decision to purchase a backup generator for their home following Winter Storm Uri in February 2021. During this extreme weather event, they were left in the dark and cold for almost five days. “We just couldn’t bear the thought of going through another storm without power,” said Stacy. “After doing our research, we decided to install a propane-powered generator since propane is easy to store on our property. We also liked the fact that it burns cleaner than diesel and is better for the environment.”
Americans across the country are becoming more energy resilient by installing their own backup power systems and decreasing their reliance on the electric system. In addition, essential businesses are making significant investments in large backup generators to ensure there are no power interruptions. Because of clean energy mandates and customer preferences, sellers are ditching diesel and offering cleaner products powered by renewable fuels and propane.
Allan Schurr, Chief Commercial Officer of Enchanted Rock in Houston, Texas. Source: Enchanted Rock
“Backup power is not a new business, but we are more and more dependent on electricity in all aspects of society, so it’s more consequential when the power is out,” said Allan Schurr, Chief Commercial Officer of Enchanted Rock in Houston, Texas. “We have seen in recent history more frequent and longer outages occurring, which adds additional value to microgrids since they can perform during a variety of events.”
Enchanted Rock has been a leading provider of commercial microgrid power solutions since 2006. They serve data centers, healthcare facilities, universities, grocers, manufacturing facilities, and water and electric utilities.
Grid Fragility
The electric grid has become increasingly fragile. The grid is experiencing disruptions more often than anticipated by the grid operators who manage electric systems across the country. For example, in 2023 during Winter Storm Elliott, Duke Energy was forced to implement rotating power outages in the Carolinas for the first time ever, saying their electricity demand outpaced expectations. They knew a storm was coming and yet this outcome was not anticipated.
Customers aren’t standing by anymore. They want control over their energy and are looking for solutions to ensure they can protect their homes and businesses during future natural disasters. Backup generators are a perfect solution because they can immediately turn on if there are power outages on the electric grid.
Utilities are using the same playbook they’ve been using for the past 100 years, despite an increase in major weather events due to climate change. Electricity is still mostly produced at large power plants and transferred by poles and wires, and regulations have not adapted to the changing needs of the system. At the same time, the energy transition is driving more renewables and increased electricity demand due to the electrification of vehicles and buildings and the expansion of data centers.
Enchanted Rock microgrid system. Source: Enchanted Rock
A Clean Energy Transition
“The energy transition must be clean, affordable, and reliable,” said Schurr. “If we sacrifice any one of those, then we haven’t achieved an equitable transition. Microgrids can be cleaner than other backup systems and enable cleaner generation on the electric grid.” In recent years, Enchanted Rock has begun offering customers more fuel options for powering their systems. In addition to natural gas, renewable natural gas, propane, and renewable propane are available.
“This demonstrates our commitment to using the cleanest form of backup systems,” said Schurr. Not only are these fuels better for the environment, but they align with the goals of the energy transition. In addition to providing backup generation, these systems can push power onto the electric grid when needed, so operating them with low-carbon energy is a good choice for customers who have clean energy goals. In states like California that have strict emissions standards, using propane, renewable propane, and other renewable fuels can be advantageous since the systems can be permitted to run longer.
“Flexibility is the name of the game,” said Schurr. “Generators who have the ability to serve peak loads can be very profitable.”
With more and more AI and data centers being built in remote locations, propane is an energy of choice because it can meet power needs where gas lines do not exist or in areas where it is not cost-effective to install pipelines to a site. Propane is easily transported in a liquid state and stored on-site. Schurr also notes that microgrids can be put in place faster than traditional energy sources since they do not require access to high-voltage transmission lines.
With more unprecedented weather events likely to occur and an energy transition that is driving increased use of electricity, microgrids will continue to be a reliable and resilient solution. Homeowner Stacy Vega put it simply: “We hope we never have to switch over to our home generator, but if we do, we’re ready.”
