By Joe O’Brien

 

Power outages continue to threaten the reliability of the power grid. They are increasingly frequent and prolonged because of extreme weather events, natural disasters, an aging infrastructure, cyberattacks and high demand.

In the search for better operational efficiencies related to the power grid, communities and commercial enterprises alike are turning microgrids.

According to data from the U.S. Department of Energy (DOE), the number of microgrids in the United States grew approximately 130% from 2015 to 2024. Remote communities (think Alaska), universities and operations deemed essential—hospitals, fire stations, wastewater treatment facilities, utilities data centers and military installations, to name a few—were the earliest adopters. Industrial applications, including oil and gas, also use them.

More recently, retail operations have installed microgrids. Alltown Fresh, Buc-ee’s, H-E-B and Walmart are among the companies adding microgrids to prevent operational disruptions.

It’s easy to see why. When outages occur, microgrids offer facilities the unique capability to operate autonomously from the main electric grid. As localized energy networks, microgrids can continue to supply electricity to connected loads using on-site generation resources.

Being the only c-store in town open during a major outage poses a lucrative opportunity. Stores capable of business continuity:

  • Capture sales lost by stores unable to serve their customers
  • Draw new customers in need of fuel, food, essential supplies and services such as Wi-Fi
  • Garner loyalty by demonstrating their reliability to customers and the community

There are two types of microgrids: continuous and conditional. Their names provide a good indication of what they provide. Continuous microgrids supply power 24/7, even during a utility grid outage. On the other hand, conditional microgrids only supply power during specific events or outages. As to be expected, continuous microgrids tend to be larger physically than conditional microgrids.

Advanced systems typically combine power generation sources, energy storage solutions and sophisticated controllers that manage the system. Microgrids can use a combination of distributed energy resources (DER) that include renewable sources such as solar, hydro, fuel cells, combined heat and power (CHP) systems and batteries, as well as conventional resources like diesel or natural gas generators.

Microgrids’ usefulness extends beyond crisis management for gas stations and hypermarkets. In some instances, they can lower operational costs—including insurance premiums.

Lighting, refrigeration, dispensers and other equipment often consume significant electricity. Facilities with microgrids can generate their own power, store it and use it strategically to shield themselves against expensive grid power during peak demand hours.

What’s more, microgrids can generate revenue. Depending on regulations and the primary grid’s infrastructure, excess power can be sold back to the grid.

 

Implementation Considerations

While microgrids offer many benefits, several factors can make implementation challenging, if not impossible, for some c-store operators.

Smaller c-stores may lack the physical space to accommodate the equipment required for a robust microgrid. While solar panels can be installed on rooftops and canopies, ground space is often needed for battery storage units, generators and control equipment. Space constraints may limit the size and type of microgrid that can be installed, which may hinder the system’s overall benefit.

The upfront investment needed to cover the cost of the equipment and installation creates another barrier for small or independent operations, which generally have limited access to investment capital (compared to larger c-store networks). That being said, retailers may be eligible for financing through power purchase agreements (PPAs), government incentives and Energy-as-a-Service (EaaS) programs, which engage a third party to own and operate the microgrid.

The availability and cost of energy sources also will be a factor.

Although harnessing renewable energy sources is an obvious choice, regional factors will likely influence determining which energy is optimal in a microgrid. For instance, hybrid configurations with generators fueled by non-renewable natural gas are gaining popularity in regions where natural gas is abundant and, therefore, cost-effective.

As microgrid adoption expands across the United States, it signals a broader shift in energy management. With their power to shape the competitive landscape during a catastrophic outage, fuel marketers with microgrids will position themselves to help customers through dark times—literally and figuratively. In this way, a backup energy supply is a business strategy as much as it is an emergency preparedness plan.

Joe O’Brien is vice president of marketing at Source North America Corporation. He has more than 25 years of experience in the petroleum equipment fuel industry. Contact him at [email protected] or visit sourcena.com to learn more.