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Strategies for Improving Facility Resilience

Even as utilities work ardently to improve grid reliability, the sad truth is that an increase in extreme weather has increased grid unreliability as well. A recent study by Climate Central showed that blackouts increased 64 percent in the 2010s compared with the 2000s. More than 80 percent of those blackouts are due to weather, according to the study. 

So what can facility managers do to increase their facilities’ resilience to power outages? Lots, say experts. From microgrids to deep energy retrofits to onsite renewable energy, facility managers have lots of options in terms of not just making a facility more resilient in the case of a blackout, but also ensuring business continuity.  

There are many considerations for these options, however. Cost is always at the top of the list. The return on investment for resilience strategies can be calculated by do a risk assessment and then simply calculating the cost of lost business in the event of a blackout, natural disaster, or other event. This may not be a perfect science, but the last thing the C-suite will want to hear if a business goes down for several days is that the outage was preventable.  

FacilitiesNet recently spoke with Brian Patterson, founder and chairman of the board of the Emerge Alliance, an organization founded in 2008 to promote the adoption of new vanguard standards for direct current (DC) and hybrid AC/DC power infrastructure in buildings, neighborhoods and communities. Patterson discusses the need for facility resilience and why resilience is such a crucial strategy facility managers must prioritize.  

FacilitiesNet: Why is resilience in commercial facilities increasingly crucial? 

Patterson: There are an increasing number of threats, some of which have turned into all-out attacks on the supply of power from the national and regional electricity grids. The five critical areas of power grid vulnerability and challenge include: 

Given the above, the increasing frequency and duration of blackouts is a growing reality for Americans and American businesses.  

The average power loss has nearly doubled in the last 10 years to about 8 hours, and the trend going forward is on an upward curve. The Department of Energy estimate of cost to the economy tops $150 billion annually, and those are only direct costs, the indirect costs could easily double that number. While consumer costs are relatively easy to calculate, food spoilage, frozen pipes, loss of income, etc., the cost for businesses vary greatly with the type and size of business. The range of costs runs from tens of thousands to tens of millions of dollars per hour.  

Averages don’t really tell the whole story. Businesses need to take an accounting of their own specific loss potential to truly understand the risk of financial loss they may be subject to. Frequency AND duration of loss can make a huge difference. A frozen food warehouse business may not suffer much from a short duration loss of a few seconds or minutes, while an automated factory that uses NC machine tools and computer-controlled processes may lose hours of production time from those same short duration interruptions due to the need for recalibration and production line clearing and process restarting.  

So whatever the loss calculation might be for any business, it’s time to take another look to update those estimates and project them into the future to avoid the old adage of closing the barn door long after the horses got out. 

Greg Zimmerman is senior contributor editor for the facility group, which including FacilitiesNet.com and Building Operating Management magazine. He has more than 19 years’ experience writing about facility issues.