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For decades, many businesses treated electricity as a relatively predictable operating expense. Today, rapid load growth, higher capacity costs and mounting reliability concerns are making that assumption no longer accurate.
Grid outages are expected to rise by 100x by 2030, according to the DOE. Yet 87% of businesses lack enough backup power to protect their entire operation, leaving them exposed to partial shutdowns and losses that can reach up to $78,000 per outage, according to PERC’s recent white paper.
A severe heat wave across the eastern United States recently demonstrated that outages are not the only threat to reliable, affordable electricity. On July 2, demand across PJM Interconnection’s 13-state region climbed to approximately 168,158 megawatts (MW), eclipsing its previous record of 165,563 MW. The new energy reality is clear: even if the grid doesn’t fail, businesses are at risk of either being priced out by charges they can’t control or asked to curtail electricity use when power is needed most.
Those pressures are only becoming more pronounced. A recent Reuters article highlighted the growing strain facing manufacturers across the Midwest as energy demand surges, driven primarily by the rapid expansion of data centers. At one Ohio brick manufacturer, the monthly capacity charge increased from $1,600 to $12,000, helping drive a 90% increase in its overall electricity costs and forcing company leaders to reconsider how they manage energy expenses.
As large data centers increasingly strain the grid, big facilities are left to literally pay the price to access power. Many have determined that price is no longer worth paying – and they’re turning to on-site power generation instead.
These challenges are going to become more common as the demand from data centers skyrockets. A resilient, energy diverse approach is essential for businesses to continue operations, keep costs down and mitigate risk. Businesses must pivot themselves to build resilience in their energy approach, or risk dire consequences.
Propane’s Edge in Power Generation
Resilient businesses will be those that view on-site generation not as an emergency measure, but as a strategic investment.
For many organizations, propane is an essential component of their balanced energy strategy. As businesses evaluate their options, propane offers a reliable and flexible solution for on-site power generation, powering standby generators, CHP systems, microgrids and more while also supplying energy for heating and other commercial applications.
Propane power generation helps facilities combat rising electricity prices and provides on-site, reliable, affordable energy where and when it’s needed – helping organizations prepare for a future where reliable power can no longer be taken for granted.
How Businesses Can Build their On-Site Generation Approach
There is no one-size-fits-all strategy to energy resilience. Every facility has different operational priorities, risk tolerances and power needs. The first step is understanding where vulnerabilities exist.
PERC has newly created the Scouting Report assessment tool that allows decision-makers to input details about their operations and receive a personalized Energy Resilience Score that not only sheds light on commercial vulnerability, but ways to improve preparedness.
Take the free Scouting Report to receive an Energy Preparedness Score for your Facility.
