Selecting an optimal site for business expansion or relocation involves more than just geography, politics, and infrastructure. It also requires a deep understanding of energy dynamics, especially for businesses with significant power and gas cost dependencies.
Energy related factors – including utility rate structures and rules, market fundamentals, renewable energy availability, and grid reliability – can significantly impact long-term operational costs and sustainability outcomes. For site selection consultants, integrating these energy considerations into the decision-making process is essential for guiding clients toward resilient and cost-effective locations.
The Impact of Energy Markets, Rates, and Costs
Energy markets are complex and dynamic, with considerable regional variations in rates, supply options, and regulatory landscapes. Consultants who grasp these dynamics can help clients avoid unforeseen cost burdens and identify locations offering favorable (or unfavorable) long-term energy pricing. This expertise is particularly crucial in deregulated power and gas markets, where selecting appropriate supply options can significantly affect costs.
Additionally, understanding utility tariff structures, forecasting future costs, and analyzing procurement options are critical steps in assessing a site’s financial viability from an energy perspective.
Evaluating Renewable Energy Potential
With carbon emissions often being a prime consideration for a new site, the availability and feasibility of renewable energy sources – both on-site and off-site – can heavily influence site selection for organizations with sustainability objectives. Evaluating on-site and off-site renewable options, understanding regional emissions factors and associated trends, and staying informed on policy incentives enables consultants to align site recommendations with clients’ sustainability goals and carbon reduction commitments.
Prioritizing Reliability and Resiliency
Energy reliability is a foundational consideration for operational stability, especially for energy intensive industries whose business depends on a stable grid. Analyzing historical outage data and weather events, as well as grid resiliency metrics helps identify locations with an elevated risk of energy disruptions. Considering backup power solutions and distributed energy resources during site selection can further safeguard against future uncertainties and enable organizations to persevere through interruptions.
Navigating Supply Connections and Infrastructure
The logistics of connecting to power and gas infrastructure can vary widely by location. Factors like connection costs, regulatory requirements, and timeline constraints can all affect site feasibility. By understanding these elements, consultants can steer clients away from sites with prohibitive infrastructure challenges and towards locations with smoother pathways to energy access.
Alternatively, in territories where multiple connection pathways exist, advising clients on the most economically and operationally advantageous paths is crucial. A rigorous and thorough analysis here can help clients identify the most cost-effective and timely option, enabling clients to go-to-market more quickly than the competition. Temporary power solutions may also be considered during the site selection and construction process if the site is dependent upon capacity, transmission or substation infrastructure upgrades.
Tapping into Demand-side Programs and Incentives
Participating in programs such as demand response or leveraging energy efficiency incentives can enhance a site’s long-term economic viability. Consultants familiar with these opportunities can guide clients to sites where participation in such programs could offset costs or even generate revenue, adding another layer of strategic value to their recommendations.
Many of the programs operated by Regional Transmission Organizations, Independent System Operators, and utilities can offer lucrative opportunities but require specialized knowledge and administrative expertise. Consultants with the capability to navigate these opportunities in detail, while understanding the ins and outs and benefits of participation, can provide significant additional long-term value to clients.
How Onsite Partners Can Support You
Balancing energy considerations with other site selection factors can be challenging for consultants. OnSite Partners can simplify this complexity by providing the data, insights, and expertise needed to evaluate each energy-related aspect of site selection comprehensively. Our services empower consultants to offer more informed, strategic insights and help their clients secure sites that align with their financial, operational, and sustainability objectives.
Our project execution capabilities extend across a wide range of sectors, including utilities, Regional Transmission Organizations (RTOs), and Distributed Energy Resources (DER). With extensive experience in managing complex projects, we ensure seamless coordination between stakeholders, optimized integration of renewable energy sources, and compliance with regulatory frameworks.
Interested In Learning More?
We are always available to assist you in every aspect of your energy journey. If you’ve found this blog informative and would like to learn more, please contact us online.