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03/26/2015 | Standby Generators: Are They Becoming a Priority Item?

Although standby generators for data centers, hospitals and other locations where power is mission critical have long been mandated by regulations (or by customers), they have traditionally been less common for other commercial and industrial applications. With continuing outbreak of severe weather disruptions, especially in the northeast U.S., that appears to be changing.

Beginning with Superstorm Sandy and continuing with this and last year’s brutal, snowbound winters, many enterprises are saying, “Enough is enough!” Here at HIPOWER SYSTEMS, we are seeing a definite uptick in the purchase of industrial and commercial natural gas generators for standby power*, as businesses and other concerns look to fuel-supply reliability and local environmental codes as primary deciding factors in their choice of backup generators.

As we reported in November, sales of natural gas generators of all types are expected to see a surge in growth. Last year, Pike Research predicted that the market for natural gas generators would increase substantially between now and 2018—to as much as $10 billion. Shortly thereafter, research firm IHS predicted that the natural gas genset market would experience an 11.9% compound annual growth rate (CAGR) between now and 2018. Over the four-year period covered by the report, that’s nearly 50% more natural gas generators being sold!

If you are currently considering an emergency backup generator—or more importantly, trying to persuade senior management that your firm needs one, here are a few points to bolster your argument.

  • Standby/backup generators increase resale values for every type of property.
  • Power grid failures have increased substantially since 1990; approximately 500,000 energy customers experience a power outage every day. The average cost of a power outage for large businesses and industrial concerns is $1500 per second.
  • Companies of all sizes may be able to use standby generators to go off the power grid during periods of peak demand. This approach, called peak shaving, reduces power bills and the cost per kilowatt or therm that the power company charges. Increasingly, utilities offer specialized devices make it possible for enterprises to sell power back to the electric companies automatically. (More about that in a different article.)
  • New generators for quality-conscious manufacturers like HIPOWER SYSTEMS are more energy efficient and quieter than previous decades’ models. In urban areas or where the environment is a concern, natural gas generators are the superior (and potentially mandated) choice.

Over the next months, we will be delving more deeply into various aspects of standby generators, to help our customers prepare for decision making before the start of hurricane season. In the meantime, our expert sales team has all the information purchasers need to make the right choice of standby generator. Please call us to discuss your requirements at 913-495-5557 or browse the equipment on our site. While you are there, sign up for myHIPOWER to gain access to extended site benefits.

*Some companies make a fine distinction between standby and backup power, but for the purposes of this article we are treating them as the same thing.

 

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