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THE REAL COST OF POWER OUTAGES

For the majority of businesses, a power outage can be both frustrating and costly. For some it can grind operations and output to a complete halt.   

 

This is true for both service and product-based businesses, though the financial loss will differ depending on the length of the power outage and size of the business in question.  

For example, a small service-based business reliant on power for WIFI connection would suffer less of a financial loss compared to a large food manufacturer, who may not only lose income through failing to adhere to product demand, but also in having to dispose of any processed product which may be ruined as a result of the power outage.  

 

Traditionally, large businesses have relied on back-up generators as a supporting power supply to protect against power outages. However with an increased use in diesel fuel and ongoing maintenance costs, back-up generators are losing market share, with Battery Energy Storage systems quickly picking up pace.  

 

That said, what is the real cost of a power outage for your business? And how can Battery Energy Storage System help overcome this risk? 

 

How much would a power outage cost my business? 

 

The costs of downtime are many and varied, depending on the specific facility, usage and capacity. However, these typically include:  

 

  • Labour downtime, overtime, management and overheads 

  • Line bottlenecks, maintenance, engineering, tooling and start-up 

  • Quality control, scrapped product, sales and replenishment 

 

Whereas a small office with 100 staff might lose an average of £2,000 per hour, small food processor who processes perhaps 2 million pies an hour would lose an average of £21,000 in one hour.  

 

As the size of the manufacturer grows, so does the loss from a power outage, demonstrated by the indicative figures below: 

 

 

EXAMPLE 

BASED ON 

INDICATIVE COST OF 1 HOUR POWER OUTAGE 

Small Office 

100 People 

£2,000 

Micro-Brewery 

15,000 barrels per annum 

£3,000 

Raw Material Manufacturer 

20,000 bricks per hour 

£7,000 

Food Processor 

3,000 chickens per hour 

£11,000 

Medium Office 

500 People 

£12,000 

UK Manufacturing Average 

133,000 Manufacturers producing £6.7tn output 

£19,000 

Small Food Manufacturer 

2.3m mince pies per 2 hours 

£21,0000 

Consumables Manufacturer 

50,000 light bulbs per hour 

£28,000 

Large Office 

2,000 People 

£48,000 

Large Food Manufacturer 

64m boxes of cereal pa 

£57,000 

Regional Brewery 

3m barrels per annum 

£305,000 

Vehicle Manufacturer 

100,000 units per annum, 10,000 people 

£855,000 

 

With this in mind, do you know what the real cost per hour would be for a power outage in your site? 

 

How can Battery Energy Storage Systems help? 

  

A Battery Energy Storage System is very simply a series of batteries which can charge from the distribution network and release the power to your commercial premises as and when you want it to 

 

Connected directly to the existing Low Voltage [LV] installation for your site, Battery Energy Storage Systems store any unused power or energy, which is then released during peak periods to help organisations reduce energy costs, or during the event of a power outage, acting as an immediate back-up power supply to ensure production or service delivery is not effected as a result.  

 

Battery Energy Storage systems are fast-becoming an effective solution for eliminating the risk of power outages.  

 

Copyright © Rock Clean Energy 2017.