If you manage one or multiple industrial sites, your to-do list likely rivals the height of your warehouse ceiling. Amidst the daily grind of operations, maintenance, staffing, and logistics, one critical priority often gets overlooked: Energy Security.
Ryan Lynch, SVP of Strategy & Marketing at Concentric, has recently explored this topic in depth, offering a practical framework for evaluating energy reliability risks across industrial facilities. His insights are especially relevant for infrastructure leaders who need to prioritize investments and ensure operational continuity.
Energy Security means having reliable, high-quality power available whenever your operations demand it, regardless of what’s happening on the broader electrical grid. Whether it’s a hurricane sweeping through your region or a heatwave pushing the grid to its limits, your facility needs to stay online. And the first place to start evaluating your risk is location.
Location: The #1 Risk Factor for Energy Reliability
The state your site resides in plays a pivotal role in determining your energy reliability. Some states are far more prone to outages, infrastructure failures, and grid instability than others. Here are the key drivers that help rank a state’s energy reliability:
- Severe weather events – Hurricanes, thunderstorms, wildfires, and ice storms are major predictors of outages.
- Age of utility infrastructure – Aging transmission and distribution (T&D) equipment increases vulnerability.
- Frequency of outages – The number of outages per person per year is a telling metric.
- Duration of outages – Average hours of power loss annually can reveal systemic weaknesses.
- Peak power availability – Can the grid meet demand during extreme temperatures or peak usage times?
Two states stand out as case studies: California and Texas. Together, they represent nearly 20% of the U.S. population, and they sit at the top of the energy unreliability chart.
Figure 1: These are estimates as of June 2025.
California: Centralized Grid, Decentralized Challenges
California’s grid is infamous for its vulnerability to wildfires, rolling blackouts, and dependence on imported electricity. The state has been a pioneer in renewable energy adoption, with significant investments in solar and wind. However, renewables don’t always meet “baseload” power needs, especially during peak hours when the sun isn’t shining or the wind isn’t blowing.
California also leads in electric vehicle (EV) deployment and business-led investments in distributed energy resources like microgrids, energy storage, and rooftop solar. While these efforts are commendable, they haven’t fully solved the reliability puzzle.
Texas: Open Market, Aging Infrastructure
Texas has taken a different approach, embracing an open market that encourages rapid growth in power generation. Over the past decade, the state has increased its available power by 30%, with a notable share coming from renewable sources. Yet, despite this growth, Texas still struggles with peak power challenges and ranks high in total outages.
The issue? Aging T&D infrastructure and difficulty integrating new power sources into the grid. More generation doesn’t automatically mean more reliability, especially if the power can’t be delivered where and when it’s needed.
Other High-Risk States
While California and Texas are the most prominent examples, they’re not alone. Other states consistently rank high in energy reliability risk due to weather, infrastructure, or grid challenges. These include:
- Louisiana
- Florida
- Maine
- Mississippi
- West Virginia
- Michigan
- Oklahoma
- Kentucky
- North Carolina
- Georgia
- Vermont
- New Hampshire
If your site is located in one of these states, it’s time to take a closer look at your energy strategy.
A 1-Minute Quiz to Prioritize Energy Security
Beyond location, your operations themselves can determine how critical Energy Security is to your business. Here’s a quick 5-question test to help you assess your risk:
- Do your operations run 24 hours, 5+ days a week?
- Do you operate a data center, cold storage facility, manufacturer, or mission-critical operation?
- Does your organization know the cost of 1 minute of downtime?
- Are you in a top 10 power outage state?
- Are you located in a Top 10 Demand Response state? Can you get paid for sharing or reducing power?
If you answered YES to all five, you likely already have an Energy Security plan in place. If you answered YES to two or more, it’s time to seriously consider building one.
Why These Questions Matter
The first two questions focus on operational intensity and criticality. Facilities that run continuously or provide essential services simply can’t afford downtime. Whether it’s a cold storage warehouse, a manufacturing line, or a data center, uptime is non-negotiable.
Question three is where the financial impact becomes clear. If your team knows the cost of downtime, whether it’s per minute, hour, or day, you’re in a better position to justify investments in Energy Security. That cost might be measured in lost revenue, delayed shipments, or even contractual penalties.
In some cases, the cost isn’t just financial; it’s about safety and lives. Hospitals, emergency services, and other mission-critical operations face life-or-death consequences when power fails. Even automated facilities can suffer equipment damage or communication failures during brownouts, leading to costly repairs and lost productivity.
Demand Response: A Hidden Indicator of Grid Stress
The fifth question introduces a different kind of risk indicator: Demand Response programs. These are utility-led initiatives that pay or credit users for reducing power usage during peak times or supplying power back to the grid.
If your state offers generous Demand Response incentives, it may signal underlying grid instability. Utilities use these programs to manage power more efficiently, especially when generation or transmission capacity is strained.
Here’s a generalized ranking of the Top 10 states with strong Demand Response programs:
Figure 2 These are estimates as of June 2025.
Participation in these programs can be a strategic advantage, but it also suggests your local grid may be under pressure. The more utilities pay, the more likely they are to try to prevent outages or manage peak demand.
Building Your Energy Security Plan
If your site is in a high-risk state, operates continuously, or has a high cost of downtime, Energy Security should be a top priority. Here are some steps to consider:
- Conduct a site-level risk assessment based on location, infrastructure, and operational criticality.
- Quantify the cost of downtime to build a compelling business case.
- Explore distributed energy solutions like solar, battery storage, and microgrids.
- Engage with your utility to understand local Demand Response programs and incentives.
- Align with leadership to prioritize investments and ensure cross-functional support.
Energy Security isn’t just about keeping the lights on—it’s about protecting your business, your people, and your bottom line.
Energy reliability is no longer a luxury—it’s a necessity. Whether you're operating in California, Texas, or any of the other high-risk states, understanding your site’s vulnerabilities and acting proactively can make all the difference.
Download the quiz, assess your location, and begin developing a plan. Because when the grid falters, your operations shouldn’t.