During the recent severe weather events associated with Tropical Cyclone Alfred over 300,000 businesses and homes in South East Queensland lost power for an extended period. Of course, the loss of power was an inconvenience for all customers. Unfortunately for many organisations it wasn’t just a temporary setback with the extended outages having serious operational, financial, and reputational consequences.
In a world where extreme weather events are intensifying, how can businesses safeguard their operations? The answer lies in building resilience with renewables. By leveraging sustainable energy solutions such as solar panels paired with battery storage and energy management technologies, businesses can reduce their exposure to the risks of power disruption, operate more efficiently, maintain continuity, and reduce dependency on the grid.
Before we discuss the solutions, let’s examine the real cost of power outages.
The real cost of power outages for business
Extended power outages can threaten the financial health and operational stability of any business on multiple fronts:
1. Loss of revenue
- Businesses that rely on electricity to operate (for example, retail stores, restaurants, and manufacturers) may be forced to close, leading to lost sales and disappointed customers.
- Online businesses may experience website downtime, resulting in lost transactions and customer trust.
- The cost of paying unproductive employees further adds to the financial strain.
2. Operational disruptions
- Factories and production lines cease operations without power, delaying orders and impacting the supply chain.
- Offices and service-based businesses experience difficulties with communications and work stoppages.
- Remote staff are impacted and can’t participate in normal business activities.
3. Data loss and IT failures
- Companies without backup power risk losing critical data if servers and systems shut down unexpectedly.
- Cybersecurity risks increase if firewalls and security systems go offline.
4. Damage to equipment and inventory
- Power surges experienced when electricity returns can damage sensitive machinery.
- Perishable goods in supermarkets, restaurants, and pharmaceutical companies may spoil, leading to financial losses.
5. Reduced employee productivity
- Employees may not be able to work without power, leading to significant downtime and delays in deliverables.
- If power outages persist, staff morale and confidence in the company may decline.
6. Reputation damage
- Customers lose trust in a business that frequently experiences outages and service disruptions.
- Businesses perceived as unreliable can impact partnerships and supplier relationships.
7. Compliance and legal issues
- Businesses in regulated industries (such as healthcare, finance or data centers) risk penalties for failing to meet service-level agreements or compliance requirements.
- Safety hazards increase in industries where power loss can cause dangerous conditions (for example hospitals, mining, and transportation).
The good news is that there is a solution to mitigating these costs. It starts with planning.
Planning for business continuity
Implementing robust business continuity and disaster preparedness strategies is essential to mitigate risks and ensure operational resilience. However, research suggests that nearly 25% to 49% of businesses lack a formal Business Continuity Plan (BCP) or Disaster Preparedness Plan, leaving them ill-prepared for unplanned events such as power disruptions. In fact, many businesses rely on adhoc arrangements to react to unplanned disasters and events.
Alarmingly, there is a significant gap in disaster preparedness. Solutions such as solar energy combined with battery storage can address this gap while supporting long-term sustainability goals.
Building resilience with solar and battery storage
When it comes to sustainable power supplies, unfortunately a plan without a backup power supply simply means that you understand the risk and accept that you will be impacted. In regions prone to extreme weather, solar with battery storage can ensure that critical operations (such as refrigeration, security systems, and data centers) remain functional even during prolonged grid failures.
Reliable backup power
Paired together, solar panels and battery systems ensure uninterrupted power during blackouts. Batteries can store excess solar energy during the day and discharge it when needed, keeping operations running smoothly. By pairing batteries with business-critical infrastructure key operational processes and activities can be maintained. However, simply installing solar and battery systems to support disaster recovery isn’t enough.
The importance of monitoring and operational readiness
Unfortunately, many businesses fail to regularly test or monitor these systems, often leaving them vulnerable when failures occur. Faulty or inactive solar panels or inverters might go unnoticed, providing a false sense of security as power keeps flowing while connected to the grid.
That’s how Karit supports businesses. Our advanced energy asset management capabilities enable our customers to proactively manage their energy assets and ensure they’re ready when they need them most. (The Karit platform ensures peak performance by integrating AI and IoT technologies for real-time monitoring and proactive management.)
In addition to safeguarding against outages, distributed energy assets and technologies offer a range of strategic advantages that can further strengthen your business.
Additional advantages of distributed energy resources
- Reduce grid dependence: By installing solar panels and batteries, you can generate and store your own electricity, reducing reliance on fossil-fuel based grid power.
- Reduce costs: Batteries can significantly enhance peak demand management strategies and help businesses avoid high electricity costs during peak hours. Instead of drawing expensive power from the grid, stored solar energy can be used, significantly reducing energy bills.
- Financial incentives: Government incentives and sustainability goals in the form of tax incentives, rebates, and grants can offset the upfront costs of installing solar and battery systems.
- Enhanced brand image: Businesses that invest in renewable energy can also improve their brand image and meet corporate sustainability goals.
- Reduced insurance premiums: Businesses who can provide evidence to underwriters that there is a plan to reduce risk of loss through power outages can potentially reduce their premiums.
- Improved efficiency: Advanced platforms, such as Karit, empower businesses with AI and IoT-based energy management tools to optimise energy usage, monitor real-time performance, and maximise savings.
- Environmental impact: By reducing carbon emissions and aligning with net-zero goals, businesses contribute to global sustainability efforts.
Secure your business from costly power outages
Tropical Cyclone Alfred served as a stark reminder of the importance of preparedness. By investing in solar and battery storage, and partnering with Karit for smart energy management, your business can build resilience, reduce costs, and ensure uninterrupted operations, even in the face of severe weather.
If you’d like to learn more about how Karit can help boost your business’ resilience and maximise your renewable energy investments please contact us. Speak to one of our energy experts today.
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