Rebecca Scottorn, Partner, L.E.K Consulting
The electricity grid is becoming a major challenge for industries and businesses. Electrification of heating, transport and industry as well as growth in energy-intensive areas such as data centres, are increasing demand for electricity, while ageing infrastructure and extreme weather are putting additional pressure on the existing system. Consequently, energy planning can no longer focus only on how much power a business uses, or how it will reduce emissions. It must also ask whether power will be available, dependable and resilient when needed, and consider alternatives such as microgrids.
Demand is outpacing grid capacity
Pressure on the electricity grid reflects a structural mismatch where demand is increasing faster than networks can be reinforced. That mismatch is already being seen in sustained load growth linked to hyperscale data centres and industrial expansion. At the same time, the UK’s National Energy System Operator expects electricity demand to rise steadily through the 2030s, reversing decades of relatively flat consumption with energy efficiency offsetting underlying drivers.
As a result, network capacity has become a strategic issue for businesses that are inherently energy intensive, not just a concern for utilities. Grid upgrades can take years, while data centres can scale in months. Viable projects with capital to build it may be limited by when the necessary grid capacity will be available. This uncertainty is influencing investment decisions and operating costs.
Powering data centres
The growth in data centre capacity has shown the gap between how quickly businesses need more electricity and how quickly the grid can provide it. They require a constant supply of power, with backup systems in place if the main source fails. Their expansion is creating multi-gigawatt clusters, which place sudden and concentrated demands on already pressured networks.
However, data centres can expand within months, while grid upgrades can take years. Therefore, to keep projects moving while they wait for the necessary grid capacity, operators are turning to onsite power. Onsite power can provide a controllable source of electricity while a permanent grid connection is being developed, with both likely to be critical for long-term energy resilience.
Modernisation and technology solutions are essential
Utilities are investing in transmission and distribution upgrades, stronger substations, storm protection, digital systems, smart technology and cybersecurity. They are also investing in batteries and other flexible technologies to improve congestion and guarantee reliable power during periods of pressure.
Grid resilience should be considered alongside energy efficiency, renewable procurement and emissions reduction. A resilient network creates capacity for electrification, electric vehicles, renewable projects and growing industrial demand. A weak or congested network can hinder a transition plan, with a timetable defined by connection queues and equipment bottlenecks.
To manage these risks, businesses with critical energy needs must consider their own solutions in addition to broader grid investments. Microgrid architectures span a range of technologies; genset-BESS-grid & Green energy-BESS-grid solutions are the most common setups, with EMS as a core layer. They can operate as primary power, backup, or temporary setups, and can be alongside or independent from the main grid.
Besides data centres, microgrid opportunities are strong in other energy intensive sectors such as the food industry, logistics warehouses, and broader power-hungry industries where the need for reliable energy supply combined with growing demand are driving penetration.
Planning for a more flexible system
Short-term availability and long-term resilience are themes that extends across sectors. Renewable generation can reduce reliance on conventional power, but its output can vary when electricity is needed most. This makes flexibility increasingly important, as storage can help balance changes in supply and demand, while dispatchable generation can provide additional support when the system is under strain.
For energy managers, the key point is not to make decisions in isolation. Instead, they need to understand how different sources of power can work together, and how much flexibility their operations require. This will help businesses judge whether their energy plans can cope with changes in supply, periods of system stress and delays to grid development, while supporting reliable operations over the longer term.
Delivering energy resilience and flexibility for businesses e.g., via microgrid solutions presents significant opportunities for the energy sector. New specialised value chains are emerging where project owners and systems integrators coordinate distinct roles across design, installation and operation, with OEMs seeing a lot of opportunity for these new applications
Preparing for a reliable future
As demand for electricity rises, companies that consider the resilience of their power supply when making investment decisions will be better placed to grow, electrify and manage uncertainty.
They should explore alternative power options proactively, while remembering to plan for and support the long-term development of resilient energy solutions. The strongest energy plans will therefore focus not only on securing cleaner power, but also on ensuring that electricity is available when it is needed.
Ultimately, grid reliability and innovative solutions are an important consideration for overall energy resilience across businesses and sectors.
This article appeared in the October 2026 issue of Energy Manager magazine. Subscribe here.
