The Growing Risk of Disruption
Historically, National Grid has been able to meet energy demand through centralised power stations that provide ample baseload power. Problems begin to arise as our energy mix undergoes a rapid transformation, shifting from a central dispatch method to a broad mix of renewable generation methods. While solar and wind provide plentiful power in optimal conditions, they are inflexible, making it increasingly difficult to balance generation with demand. At the same time, a growing number of organisations are investing in on-site generation. In many cases, they will be looking to offload excess power back to the grid, forcing network operators to balance not just outgoing power but also incoming, small-scale generation.
All this is putting growing strain on local power networks, as well as the grid as a whole. As a result, the risk of localised disruption is steadily growing, with figures from Centrica showing that eight in ten UK businesses suffer at least one energy disruption event annually. Businesses that fail to take steps to bolster their power resilience are risking up to 17% of their revenue in damages and lost opportunities.