Grocery stores are lifelines for their communities, especially during and after adverse weather events. Grocery stores have seen their roles in their community dramatically expanded over the years from primarily food and home goods, to pharmacy, fuel supply and now EV charging infrastructure. This article explores the significant benefits distributed energy resources offer to grocery stores.
Power outages are one of the most immediate consequences of adverse weather events. Grocery stores rely heavily on electricity to power refrigeration systems that keep their perishable goods fresh, IT systems that operate their point-of-sale systems and security systems to protect their customers and their staff. Microgrids provide a reliable power source during grid outages, ensuring that grocery stores can continue safe, effective, and reliable operations even during extended outages. The financial risks can be significant with a single 3–4-hour utility outage resulting in direct perishable food losses with as much as $250k per store location.
Physical damage to store properties from high winds and flooding can be extensive. Microgrids can power essential protective measures, such as automated storm shutters and sump pumps, reducing the extent of damage and the cost of repairs. This proactive approach not only protects the store’s physical assets but also minimizes downtime, allowing for a quicker return to normal operations. Energy resiliency can also be used for storm avoidance, islanding the store prior to an advancing storm, to isolate the store and your critical systems before you have a potential utility outage.
Utilities across the country are dealing with broad electrification growth and challenges with meeting peak demand. Grocery stores can leverage utility programs that provide direct financial incentives to utilize distributed energy resources to provide critical grid support services through demand response and economic dispatch. The utility uses these programs to leverage customer-based distributed energy resource distributed generation to help offset system grid constraints. Each utility program is unique in both its structure and the magnitude of economic impact, so at PowerSecure we provide an economic analysis of the rate/tariff impact.
The reliability of a grocery store during and after adverse weather events plays a crucial role in maintaining customer trust and loyalty. Stores that remain open and adequately stocked during emergencies demonstrate their commitment to the community. Environmentally friendly distributed energy resources enable stores to offer continuous services, support local relief efforts, and provide a sense of normalcy during chaotic times while reducing the impact of carbon emissions. This proactive community engagement can lead to a positive reputation and long-term customer loyalty.
In the age of social media and instant news, the actions of grocery stores during hurricanes are highly visible. Stores that use microgrids to stay operational and support their communities often receive positive media coverage. Stories of grocery stores providing shelter, donating supplies, or simply remaining open during a storm can enhance their public image and attract new customers.
Effective communication and community engagement are crucial during storm season. It is also critical for key suppliers and service parties to maintain active engagement with your team. Keeping customers informed about store operations, stock levels, and available services can help maintain trust. Additionally, engaging in community support activities, such as donating supplies or providing emergency services, can enhance a store’s reputation.
Developing a robust supply chain management strategy that includes contingency plans and alternative suppliers can help mitigate the impact of supply chain disruptions. Many times, our grocery clients look at a “hub and spoke” resiliency strategy from their distribution centers, resupply logistics and neighborhood stores. This multi pronged service model ensures each critical element of supply is accounted for in their service model.
Adverse weather events pose significant challenges to grocery stores, but with the right strategies and technologies, these challenges can be mitigated. Microgrids are transforming how grocery stores prepare for and respond to storms. By investing in these innovations, grocery stores can protect their business interests, maintain customer trust, and strengthen their community standing. As we enter another active hurricane season, the role of microgrids in ensuring continuous operations and community support is more crucial than ever.
Interested in learning how PowerSecure helps the power resilience of retail businesses? Contact us today.