Building Energy Resilience: Strategies for Weathering Grid Instability

The U.S.Office of Energy Efficiency & Renewable Energy defines the need for energy resilience as “the ability to operate building energy services, such as heating, cooling, ventilation, critical plug loads, and shelter, during and in response to a major disruption.” 

And that same office also recognizes there has never been a greater need for energy resiliency. The power grid is under increasing stress in the U.S. because of its age and condition, along with increasing demand. With more than 70 percent of transmission lines more than 25 years old and approaching the end of their lifecycle, power infrastructure is in desperate need of an upgrade — but it’s not happening quickly enough. Extreme weather, too, is a frequent cause of power disruptions.

Maintaining continuity of operations is key to your business’ bottom line. Even momentary power interruptions can result in system downtime and malfunctions for manufacturers and service providers. 

There are ways to increase your organization’s energy resilience to help you offset the growing instability of the public grid. In this article, we’ll consider the impacts of grid instability along with strategies for building energy resilience.

Understanding the Business Risks of Grid Instability

Grid instability or failure can impact business operations in a number of ways, from halting production on a factory floor to disrupting supply chains around the world. Even when the power is out for only a few minutes, productivity may be reduced. In addition to costly downtime, some of the primary areas of business risk caused by grid instability include:

• Data and Cybersecurity Risks
  
  

  Power outages can trigger system failures and data loss. If your organization relies on cloud-based software and data storage, the risk is even higher. The secure connection may be disrupted, potentially leading to compromises of sensitive data. Cyber criminals may target businesses in the midst of widespread grid failures, knowing that weakened infrastructure means easier inroads to normally protected systems.

• Financial Risk
  
  Grid instability and power outages can also lead to financial risks, such as a decrease in revenue and the potential to miss contractual obligations and incur related fees. If property or machinery is damaged in a surge or outage, your business could also face costs for repairs or increased insurance premiums if you have to make a claim.

• Safety Risk
  
  Power disruptions can also pose safety risks to workers. Surges can start fires or cause equipment to overheat. If your teams try to keep working without full lighting, they’re at higher risk for accidents. And if extreme weather is involved, downed lines and damaged power stations can create further safety hazards.
  
  
• Risk of Losing Market Share
  
  When grid instability disrupts operations at your business, you risk losing market share. For manufacturers, repeated power outages can set back your production schedule and cause you to miss contract deadlines and fail to fulfill promises to distributors. If employees are repeatedly sent home or asked to work overtime, their morale and engagement could decrease, making them more likely to quit. Power disruptions too easily can cause a slow erosion to your business’ reputation, leaving you at a disadvantage.

Real-World Impacts of Grid Instability

While some regions are at higher risk for grid failure than others, nowhere is beyond the impact of severe storms or aging infrastructure. Let’s look at a few recent examples of catastrophic weather events and infrastructure failures that triggered negative impacts for businesses.

• California Wildfires
  
  In California, frequent and serious wildfires result in property damage and infrastructure instability. In 2021, the Caldor Fire reportedly cost the region an estimated tens of millions of dollars in lost economic activity. Because the fires are often long-lasting and unpredictable, even businesses that aren’t directly impacted often endure outages due to Public Safety Power Shutoffs (PSPS), a practice by California utilities that helps mitigate wildfire ignition by power lines in dry and windy conditions.

• Hurricane Helene
  
  In September 2024, Hurricane Helene wrought catastrophic damage far beyond the Florida Panhandle where it made landfall. In North Carolina, the storm triggered widespread business closures due to physical damage to businesses and the grid itself. Power outages throughout the southeast persisted for days — and even weeks — after the storm moved through, with more than 760,000 outages in South Carolina, 416,000 in North Carolina, and 570,000 in Georgia persisting for days after the disaster.

• Texas Winter Storm
  
  In 2021, a winter storm and sustained frigid temperatures resulted in power outages affecting millions of people and businesses in Texas. The “Big Freeze” led to 57 deaths and more than $195 billion in property damage, according to the Energy Institute at the University of Texas in Austin — and it highlighted vulnerabilities in the state’s electric grid, such as power shortages and a lack of preparation for extremely cold temperatures and dedicated emergency response resources.
  
  
• Hurricane Beryl

Top Strategies for Building Energy Resilience

While you can’t stop a natural disaster from sweeping through your area, there are steps you can take to increase your business’ resilience in the face of grid instability. Let’s take a look at a few smart strategies for building energy resilience.

• Distributed Energy Resources (DERs)

Many businesses are incorporating modular energy sources onsite, including solar panels, wind turbines, generators, and battery energy storage systems (BESS). These energy sources, called Distributed Energy Resources (DERs), can be used to generate or store power. DERs like solar, wind, and battery storage provide decentralized power for manufacturing plants. With DERs providing supplemental and backup power, your business can become less dependent on the public grid and other external energy sources. Access to reliable, cost-effective backup energy often means the difference between costly downtime and keeping your business moving forward.

• Smart Energy Management Systems
  

Coupled with DERs, an advanced energy management system can allow you to predict and respond to disruptions instantly. Modern energy management software, such as Grove365®, applies AI to monitor the microgrid in real-time, anticipating demand and helping to optimize energy storage and usage.

• Routine Maintenance and Testing

There’s no substitute for regular maintenance and testing on power equipment, especially backup generators. Proactive service and maintenance is critical to ensure these systems are running at optimal performance for your facility. Leading  solutions now include sensors for predictive maintenance and alerts when equipment is in need of service or replacement. 

Take a Proactive Approach to Energy Resilience

Don’t wait until your business is hit with a power outage, surge, or other disruption. Make the first move to protect your organization from the risks of grid instability with the R3Di® System, a utility-grade, onsite power generation system that delivers conditioned, uninterrupted power and relies on a self-contained, turnkey power platform installed without requiring an interconnection agreement or costly public utility upgrades.