Electricity powers nearly every aspect of life, yet the U.S. now experiences more outages than any other developed country.[1] Power disruptions have risen 25% on average over the last decade[2]—and more than 50% in some states over the past four years—raising concerns about power grid stability and the growing risks to homes and businesses.[3]
Power Grid Disruptions Cost Owners $200 Billion Annually
Power outages are estimated to cost building owners over $200 billion annually as a result of downtime, productivity losses, and a range of impacts to building tenants and dependents[4]
For businesses, outages can halt production, spoil inventory, and eliminate critical revenue. For communities, especially vulnerable populations, prolonged outages threaten comfort and access to essential services.
These outages are becoming more frequent, costing communities billions, and are not going to stop anytime soon.
Why Are Power Outages Increasing?
Several factors are straining the grid simultaneously.
Aging Energy Infrastructure
Much of the grid is decades old. Nearly 40% of transformers are beyond their intended lifespan, and over 70% of transmission lines are approaching the end of theirs.[5]
Aging equipment fails more often, contributing to significant economic losses, estimated between $28-$169 billion annually.[6] Further, aging infrastructure is increasingly vulnerable to natural disasters ranging from fallen trees to expansive wildfires.
These costs are shared between utilities and business owners, as increasing maintenance costs lead to increasing electricity rates. Aging energy infrastructure is leading to increasing day-to-day energy costs and economic losses due to power outages.
Extreme Weather
Severe weather is the leading cause of outages. Heat waves, cold snaps, wildfires, hurricanes, and storms increasingly stress an already aging system.
Events like the 2025 nor’easter storm left hundreds of thousands of communities and businesses without power across the Northeastern U.S.[7]. In 2024, Hurricane Helene led to one of the largest power outages in the U.S. in the last decade[8], while heatwaves in Texas left millions without power in the wake of Hurricane Beryl.[9] Events like these show how quickly extreme conditions can overwhelm generation and transmission systems, leaving communities without power.
Growing Demand and Shifting Supply
Electricity demand is surging after years of stability.
Computing, on-shored manufacturing, and electrified industries are shifting and increasing demands on already overloaded electricity systems. At the same time, base-load coal and natural gas plants are retiring faster than they’re being replaced.
Development of cost-effective distributed and renewable energy is essential and continues to see investment[10], but introduces challenges of intermittency, needing sufficient long‑duration storage, grid modernization, and demand-side management to ensure reliability.
How Building Owners Can Protect Assets and Tenants
Addressing operational, technical, and financial resiliency has never been more accessible. By enhancing building infrastructure and systems, owners can optimize asset performance while hardening their operations against the threat of power outages. Every building’s needs are different, but common methods to boost resiliency include:
- High-efficiency HVAC Equipment and Systems: High efficiency equipment lowers overall energy demand permitting buildings to operate longer and more comfortably with less power. The reduced load on backup power systems helps improve stability and protects building assets, while also reducing load on the electric grid.
- Smart Building Solutions: Leveraging controls and automation to optimize energy use across building systems helps reduce noncritical loads and ensures essential functions remain prioritized. These technologies can also coordinate with utility systems during periods of grid stress by automatically adjusting setpoints. As a result, buildings can rely less on backup power during outages and reduce exposure to high demand charges on utility bills.
- Distributed Energy Resources (DERs): DERs like energy storage and solar can supply onsite power when the grid fails, with the potential to keep critical operations running longer. When prioritized to support HVAC systems, DERs can help ensure critical heating and cooling needs are met in the face of a power outage.
Together, these solutions can also boost the affordability of operating a building. By reducing energy consumption, optimizing demand during peak periods, and leveraging on-site power, these solutions lower operating costs while guarding against expensive unplanned outages. Reliable buildings also assist with tenant satisfaction, revenue continuity, and long-term asset value.
Resiliency in Action: Ozark Schools
- The Problem: Trane worked with Ozark Public Schools to increase resilience from frequent HVAC breakdowns, aging systems, and high energy and maintenance costs.
- The Trane Solution: The final project included upgrades to high efficiency HVAC and energy management systems, solar power generation systems, and thermal energy storage to provide additional resiliency benefits.
- The Outcomes:
- Reliance on grid-based power reduced by 20%
- Reduction of annual energy demands by 1,585 kW annually
- Utility savings of $32,000 annually
- Community emergency protection and rising cost mitigation
- The district’s utility implemented time-of-day rates with nighttime electricity 15% cheaper than daytime. The TES system charges overnight during off-peak hours, significantly reducing annual electrical costs. Additionally, the system consists of two air-cooled chillers and 18 ice tanks, so if one chiller was to fail, the other chiller along with the ice storage provides enough capacity to cool the school on a hot day.
