The Cost of Climate Change: Why Every Building Operator Needs Energy Resilience Now

The damage from Hurricanes Helene and Milton is expected to reach tens of billions of dollars ^[i]. These disasters shatter the assumption that climate events only threaten coastal regions  and tornado alleys — and highlight why businesses must strengthen their operations against extreme weather, no matter where they’re located.

Rising temperatures and severe weather events pose challenges but also highlight the urgent need to modernize and strengthen aging energy grid infrastructure. Power outages from storms, wildfires and other natural disasters in the United States have increased by nearly 75% over the last decade ^[ii]. In 2023, the United States alone saw 28 weather and climate-related disasters that cost more than $1 billion – a new record, with a total loss of $92.9 billion, ^[iii] according to the National Centers for Environmental Information.

Even more, the U.S. Department of Energy estimates that blackouts cost businesses $150 billion annually ^[iv]. Though escalating power outages present challenges, they also offer the opportunity to innovate and enhance operations to ultimately strengthen the resilience of critical infrastructure and services.

Energy resilience reinforces the need for companies with critical operations, regardless of location, to prioritize their operations and consider the costs of being unprepared. With climate change, grid instability and rising energy costs top of mind for facilities, on-site generation and microgrids are becoming increasingly essential.

Here are five strategies facility operators can use to enhance resilience and establish reliable, continuous energy for their critical infrastructure.

Conduct resilience planning and risk assessment

Resilience planning should begin with identifying the critical functions that require power in all circumstances. For example, it’s important to determine which buildings and equipment are essential to operations and their power requirements. This information can guide planning efforts to make sure demand is met and to assess how long the building and its vital systems can operate during an outage or disruption.

Deploy on-site generation

Properly implemented, on-site generation boosts reliability and resilience by diversifying energy sources and reducing grid demands. For example, solar generation helps commercial and public building operators lower energy costs, manage unreliable grids and meet sustainability targets.

Combined heat and power (CHP), or cogeneration, is a valuable option when there are simultaneous electrical and thermal loads – like in hospitals – that require electricity for equipment and lighting and steam for sanitation and laundry. When properly designed, CHP can achieve total system efficiency ranging from 65% to 80% ^[v].

Operate energy storage solutions

Energy storage solutions can increase the viability of on-site, clean energy generation by storing energy and using it at optimal times. There are a range of energy storage options, with two principal technologies:

• Electrochemical battery energy storage systems (BESS), which store renewably generated electricity in rechargeable lithium-ion batteries.
• Thermal energy storage (TES), which stores heat or cold for later use, allowing access to stored energy during peak demand rather than generating it on demand. This can involve using solar power to heat a water tank or employing ice as a storage medium.

These energy storage solutions help solve the intermittency issues of renewables and provide backup power when outages occur, while also delivering significant cost savings over time.

Leverage grid-interactive buildings

As buildings become more complex and incorporate on-site generation and storage, effectively controlling and optimizing these systems is important. Operators need to manage energy supply diversification and determine whether to rely on the grid or on-site renewables and storage at any given time.

An energy management system (EMS) allows building operators to engage in demand response programs by adjusting power demand during peak loads or grid strain. The EMS leverages data from smart meters, IoT devices, microgrid controllers, and building management systems to optimize energy usage. It employs strategies like peak shaving, power-quality improvement and smart load shedding to reduce peak demand charges and time-of-use energy costs while guaranteeing the power supply for critical systems remains secure.

Use passive design strategies

Passive design strategies can significantly enhance energy efficiency. Common approaches include maximizing natural lighting and optimizing solar heat gain. In hot climates, techniques like shading, natural ventilation and using materials that disperse heat can further minimize the need for air conditioning.

These approaches can considerably reduce energy requirements in the right location and climate. For instance, the San Francisco Federal Building, completed in 2007, uses natural ventilation for 70% of the work area in place of air conditioning and provides natural light and operable windows to 90% of employee workstations ^[vi]within the building. By implementing these passive design strategies, buildings can not only improve energy efficiency but also create healthier, more sustainable environments.

Honeywell is here to help

There is a significant opportunity to engage with the evolving landscape of microgrids and on-site energy generation. Honeywell collaborates with businesses globally to support their sustainability journeys. Visit our energy resilience page to learn how we can help you create a more sustainable and energy-independent future.

[i] NPR, Damage from Helene and Milton could cost tens of billions of dollars to fix [Accessed October 30, 2024]

[ii] The Guardian, US seeing rise in climate-related power outages, report says [Accessed October 14, 2024]

[iii] Climate.gov, 2023: A historic year of U.S. billion-dollar weather and climate disasters [Accessed October 14, 2024]

[iv] Energy.gov, Department of Energy Report Explores U.S. Advanced Small Modular Reactors to Boost Grid Resiliency, January 25, 2018 [Accessed October 30, 2024]

[v] EPA, CHP Benefits [Accessed October 14, 2024]

[vi] Morphopedia, San Francisco Federal Building [Accessed October 14, 2024]