Propane: A Scalable and Reliable Energy Source for Emerging Microgrid Needs

With the frequency of severe weather events and power outages, businesses, industries, and facilities are looking for cost-effective mitigation solutions that can help build a more reliable and resilient grid. Microgrids — small energy systems that operate independently of the electric grid — are quickly becoming an attractive option for their reliable power and lower cost compared to upgrading lines or adding substations. As a result, more commercial building professionals are adopting microgrids to enhance resilience for their facilities.

BoxPower, a company that manufactures microgrid solutions for remote areas, reports that upgrading transmission equipment and poles can cost an estimated $1 million per mile. Several utilities, including PG&E and Liberty Utilities in California, are installing BoxPower microgrids as part of their ongoing wildfire mitigation efforts. PG&E hired BoxPower to install a solar-battery-propane microgrid in Briceburg, California, following a major fire in 2019 that destroyed the power lines serving this rural community. Following its success in increasing grid resilience and reducing emissions, PG&E has since installed additional microgrids in other high-risk areas.

BoxPower’s microgrid systems are typically powered by solar and batteries with backup generators. Propane is an excellent energy choice to support renewable microgrids, as it is a clean, on-site fuel source with no expiration date. Propane is significantly cleaner than diesel, emitting 25% to 35% fewer greenhouse gases, making it an ideal partner to solar power and battery storage.

Beyond serving as a clean backup fuel, propane also plays a critical role in microgrid infrastructure through combined heat and power (CHP) systems. These systems support facility heating by using a propane-powered engine, heat exchanger, and generator to simultaneously produce electricity and capture usable thermal energy. The captured heat can then be used for space heating, water heating, and even dehumidification, with total system efficiencies reaching up to 75%.

A CHP system can operate independently or within a microgrid to create power and heat. These units are ideal for on-site power generation, as most systems can provide standby power during grid-based outages. Propane-powered CHP systems offer the full benefits of on-site electricity and thermal energy production — without the added cost of demand charges or peak utility rates.

Microgrids powered by propane generators offer businesses enhanced safety and increased resilience, ensuring continuity of operations during power outages. When disasters like hurricanes, tornadoes, and other extreme events disrupt the power grid, propane generators provide a seamless backup, keeping businesses operational and safeguarding against financial losses. In addition to reliability, switching from diesel to propane-powered equipment improves air quality and supports decarbonization goals. Discover how propane power generation can benefit your next project by visiting propane.com/powergen.