From rising costs to aging infrastructures that call for diversifying energy sources, these are among the top reasons industrial energy users are reassessing their reliance on the grid. Another factor that pushes them to aim for energy independence is the increasing consequences of extreme weather.
Rising energy costs are of particular concern. As reported by the World Resources Institute, the average electricity rates in the U.S. have jumped by nearly 30% since 2010. It also noted that in 2025 alone, electric utilities throughout the country have requested price hikes amounting to $71.2 billion through 2028.
Given such high costs, it's no wonder more industrial energy consumers are turning to power grid alternatives, with many even investing in their own power generators.
What Is Industrial Energy Use?
Industrial energy use refers to the power consumed by industrial sectors. They use it for many operational processes, such as:
- Heat generation
- Motor and machinery operation
- Raw material for production
What Are Industrial Energy Systems?
Industrial energy users rely on systems made of complex equipment, frameworks, and processes to power their operations. Often referred to as "industrial energy systems," these technologies allow industries to generate, manage, and distribute heat and power for:
- Large facilities
- Data centers
- Factories
Industrial energy sources widely vary, but they're usually fossil fuels, such as gas, oil, and coal. They power large machinery, from industry-grade boilers to HVAC (heating, ventilation, and air conditioning) systems and motorized equipment.
What Are Examples of Specific Industrial Energy Users?
Some specific examples of industrial energy users are:
- Manufacturing
- Mining
- Construction
- Agriculture
Of all these industries, manufacturing is the most energy-intensive. According to the latest available data from the U.S. Energy Information Administration (EIA), it accounted for 76% of the total industrial energy consumption in 2022. Mining ranked second (12%), followed by construction (7%), and agriculture (4%).
Within the manufacturing industry, some of the leading energy consumers are those involved in chemicals, petroleum, and coal products. Paper making, primary metals, and food production are also energy-intensive.
Why Does the Industrial Sector Use the Most Energy?
The industrial sector is the leading consumer of energy in the United States. The American Geosciences Institute says it accounts for about 32% of total energy consumption. The rest consists of use in the transportation (29%), residential (20%), and commercial (18%) sectors.
The industrial sector is the leading energy consumer, as its users rely on energy for large-scale activities. Such operations require vast amounts of power (e.g., for heating, motor operation, or transforming chemicals).
Why Are Industrial Energy Users Reassessing Their Dependence on the Power Grid?
If you're an industrial energy user yourself, you must stay on top of your industry's shifting energy-related landscape and practices to learn how to manage costs. It can also help you maintain your competitive edge and comply with changing regulations.
Here are key insights regarding industrial energy users and why they're reassessing their grid reliance.
Rising Energy Costs
The rising cost of energy is a primary factor pushing industrial energy users to become more energy independent. Behind these price increases is the fact that most energy sources consumed today are still primarily fossil fuels.
Fossil fuels being non-renewable makes them depletable, giving rise to their price volatility and costliness.
Due to rising costs, more industrial users are pursuing renewable energy integration, such as solar power systems. With today's technologies, you can get a solar system not only designed specifically for your organization's power needs but also tailored in a way that pays for itself, as explained by the folks at Emergent Solar Energy.
Aging Infrastructures
Much of the electric grid that powers the U.S. dates back to the 1960s and 1970s. As a result, many transmission lines are nearing the end of their typical useful service life. Indeed, the U.S. Department of Energy says that as much as 70% of transmission lines still in use today are over 25 years old.
The grid's old age makes it more prone to various problems, from cyberattack susceptibility to power outages and malfunctions.
The aging grid's less-than-stellar reliability also means it can no longer handle the massive and continuously growing demand of industrial energy users. Because of this, more organizations are implementing alternative industrial power strategies, such as:
- On-site energy generation (e.g., using solar panels or wind turbines)
- The use of alternative fuels like biofuels and waste-derived fuels
- Investing in energy storage solutions, including renewable energy battery systems
Extreme Weather
Another problem that the aging grid poses is its extreme vulnerability to severe weather. Its old age makes it more likely to struggle and fail due to severe events like intense heatwaves, more frequent storms, and catastrophic wildfires.
Unfortunately, whenever the grid fails, industrial operations cease.
If industrial energy users remain dependent on aging infrastructures and don't have energy backups, they won't be able to do anything, and they can suffer from significant productivity and financial losses.
Frequently Asked Questions
Are Renewable Energy Sources Better Than Grid-Sourced Energy?
Renewable energy sources have many advantages over traditional grid energy, which is still primarily powered by fossil fuels.
First, renewable energies, such as solar, wind, and hydro (water), are cleaner, as their generation produces little greenhouse gas (GHG) emissions and pollutants. They're also more sustainable since, unlike fossil fuels, they're "renewable," meaning they replenish themselves naturally and constantly.
Because they're replenishable, renewable energy sources also cost less in the long run, although the infrastructure needed to generate them comes with considerable upfront costs (e.g., solar panels or wind turbines).
What Is the Most Popular Renewable Energy Source?
Solar power systems are often the preferred renewable energy source as they're more accessible than other renewables. Geothermal systems, for instance, require complex and more expensive infrastructure. The feasibility of wind turbines, on the other hand, relies on specific geographic features, so they're not as easy to set up.
Conversely, solar energy systems are becoming cheaper, and the primary source (the sun) is widely available all over the world.
It's Time to Reassess Your Power Grid Reliance
Whether your business is among the many industrial energy users or you're an individual or commercial consumer, it's wise to reassess your reliance on the grid, given that its rising costs don't show signs of stopping. By investing in alternatives like solar, you can save energy and money, be more eco-conscious, and be better prepared for emergencies.
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