The Benefits and Challenges of Facility Electrification

Electrification can help facilities meet their energy efficiency and sustainability goals.   November 30, 2023


By Jeff Wardon, Jr., Assistant Editor


There is a growing need for both efficiency and sustainability for a facility’s operations. Given this, many facility managers want to know what methods or paths are available to them to achieve these two goals. One possible route forward is through electrification.  

Electrification is the process of shifting from energy created by traditional fossil fuels to energy from electricity instead, according to Joe Haugen, senior director of power supply at IGS Energy. 

“When you do this, you really are relying on electricity instead of these fossil fuels,” says Haugen. “However, what that brings you is optionality, and what I mean by that is electricity can be generated by a lot of different methods. So, when you have these options in place, you can begin to pick where you want your electricity to come from.” 

With these new options opened, facility managers can find a way to phase out the use of fossil fuels in their buildings. Doing so allows facilities to switch to more sustainable methods of energy generation, such as solar, wind, hydro or geothermal. When that is done, facility managers can effectively reduce their overall carbon footprint.  

Additionally, electrification can lead to more efficient operations for a facility, which in turn can translate to lower costs. An example of this is through smart grid technology, which is mainly focused on decreasing spikes during peak usage times to help manage overall energy usage and costs.  

Related Content: The Future is Building Electrification

“Whether it is real time monitoring and load management or lowering average usage through efficiencies, there can be significant savings through these energy management software packages in different programs,” says Haugen. “A good example of that would be if you were integrating electric vehicles into your fleet and all you did was just create an energy management program that charges them in the evening. That can have a very minimal impact on the business, but a high impact on cost savings.” 

However, Haugen does see an obstacle for facility managers looking to electrify their buildings: finding the right key partner for electrification. Haugen says that even with a simple Google search, there is a plethora of companies that offer solutions.  

“There are now energy monitoring companies that handle efficiencies, demand response programs, electrification, solar batteries, etc.,” says Haugen. “What is going to be a challenge for these facilities in the future is finding the right partner to help them piece these different things together, because a lot of these companies can have competing interests.” 

Using Haugen’s original example, if a facility follows through with a building management program where they always charge electric vehicles at night, if all of them are turned on at once, it could create a demand peak at the facility on the distribution grid. While a facility will see energy savings during the day, it may end up with higher distribution costs because it creates peaks later. 

Even with the challenge of finding the right partner for the electrification process, switching to an all-electric energy system will still benefit facilities in the long run.  

“I like to think of it as future proofing your business,” says Haugen. “In the U.S., we are really moving away from a lot of traditional technologies. Then when you look at how facilities are going to move into the future, a lot of it is tied to electricity. So, you can get in early and begin to utilize these new technologies as they are being developed. I see a lot of benefits in setting your business up for all the new efficiencies and technologies that are coming.” 

Jeff Wardon, Jr. is the assistant editor for the facilities market. 

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