Pulse Survey BUSINESS RESILIENCY AND ENERGY INNOVATION Sponsored by
SPONSOR PERSPECTIVE Putting the World in Power The expectations for how our grid should work—and what it should be capable of—are higher than they’ve ever been. Meanwhile, the whole system is playing catch-up. Throughout the 20th century, other innovations evolved rapidly. Yet by 2000, the grid was a relic. It was not only aging, with assets going on a century old, it also was still largely analog in an increasingly digital society.
BUSINESS RESILIENCY AND ENERGY INNOVATION The vast majority of U.S. business, hospital, and higher education leaders have strong concerns about rising energy costs, business interruptions from weather-related events, and the daunting specter of cyberattacks on power grids.
Businesses are already turning away from non-sustainable energy sources. And the most prescient are taming energy costs and ensuring resiliency through increased use of on-site power generation.
solar energy is less expensive than other sources,” he says. “The transformation can move as fast as the transition from landlines to cell phones. Remember, after the tipping point, it only took about 10 years for cars to displace horsedrawn carriages.
FIGURE 3 WHAT BUSINESSES ARE DOING ABOUT ENERGY SUSTAINABILITY Respondents indicating that their organizations are taking each of the following actions Improving energy efficiency in facilities 80% Working with supply chain partners to increase clean energy use and/or energy efficiency 39% Developing new energy-efficient products and/or product features 33% Implementing new manufacturing processes 31% Changing distribution and/or logistics to reduce carbon emissions 28% Making business resiliency plan
APPROXIMATELY ONE-THIRD OF ORGANIZATIONS GENERATE THEIR OWN POWER. SOLAR IS A COMMON SOURCE OF ON-SITE GENERATED ELECTRICITY.
Utilities are also playing an increasingly helpful role, and only 34% of respondents see their efforts to preserve the status quo as a major barrier to energy innovation. California-based Prologis has gone a step further. The global warehouse company realized that generating solar energy on its roofs can become a significant source of revenue.
The Demand for a Strong Government Role Despite ongoing debates about the role of government in the economy, only a tiny minority of respondents—16 %— believe that governments should have no involvement in energy innovation. A significant majority believe that government should support energy innovation through research funding and energy financing for businesses and consumers. Nearly 90% of respondents believe that businesses and municipal governments should work together to improve operational resilience.
utility’s costs have to be spread over a smaller base of customers, which drives up prices. As prices increase, more customers defect, creating a downward spiral that Green Mountain Power is determined to avoid. ONLY A FRACTION OF ORGANIZATIONS HAVE BUSINESS RESILIENCY AND ENERGY PROCUREMENT STRATEGIES IN PLACE. Conclusion: A New Energy Skill Set In terms of energy and innovation, Winston draws an analogy between marketing executives and social media.
METHODOLOGY AND PARTICIPANT PROFILE A total of 162 respondents drawn from the HBR audience of readers in the U.S. (magazine/enewsletter readers, customers, HBR.org users).
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