The Real Cost of Power Outages – Losing Power due to Extreme Weather Events

Power outages can have a devastating effect on business operations, particularly for companies that rely on refrigeration and continuous electricity to protect stock. Severe weather events across Queensland have shown how vulnerable many businesses are when the grid goes down, and the financial impact can be significant.

An independent grocer on the Queensland coast experienced this firsthand during Cyclone Alfred, when repeated power interruptions caused major disruption and resulted in substantial losses.

The Cost of Power Loss

Power outages are not just inconvenient, they can be extremely costly, especially for businesses handling perishable goods.

During Cyclone Alfred, the grocer’s area was affected by storm damage to the local power network, resulting in multiple outages over several days. One extended outage lasted long enough to cause serious concern for refrigerated and frozen stock.

Without power, the store was unable to maintain safe temperatures across a large portion of its inventory, including:

• Fresh produce
  • Dairy products
  • Frozen foods
  • Prepared and packaged items

Despite efforts to manage the situation, the outage resulted in significant spoilage and lost trading time.

The total cost to the business from stock loss and interrupted operations was estimated to be in excess of $30,000 from this single event.

For a small independent store, losses of this scale are difficult to absorb, and the owner recognised that future outages could have an even greater impact.

Installing a Backup Power Solution

Following the cyclone, the decision was made to install a standby generator system to protect the business from future power failures.

Genelite supplied a 45kVA diesel generator complete with an Automatic Transfer Switch (ATS), allowing the system to start automatically when mains power is lost and shut down once supply is restored.

The generator was sized appropriately to carry the store’s essential loads, including:

• Refrigeration and freezers
• Lighting and checkout systems
• Security and communications
• General power to critical circuits

Installation was completed by a local electrical contractor, with the system designed to ensure the store could remain operational during extended outages.

Protection When It Was Needed Most

Not long after the installation, the area experienced further storm activity that again caused interruptions to the local power supply.

This time, the generator started automatically as designed, keeping refrigeration running and allowing the store to continue trading while surrounding businesses were affected.

Instead of facing further stock loss, the business was able to operate normally and maintain service to customers throughout the outage.

For the owner, the generator quickly proved to be a worthwhile investment.

The Real Value of Backup Power

For businesses that depend on electricity, the true value of a standby generator lies in the security it provides. While the upfront cost of installation may seem significant, the potential savings can far outweigh the investment.

In this case, the cost of the generator system was less than the loss caused by a single major outage.

Backup power solutions are commonly installed for:

• Supermarkets and food retailers
• Workshops and manufacturing businesses
• Farms and rural properties
• Caravan parks and accommodation sites
• Commercial buildings and warehouses

Genelite supplies standby generator systems across Australia, with each solution tailored to suit the site, load requirements and level of protection needed.

Planning Ahead for the Next Outage

Severe weather events like Cyclone Alfred highlight the importance of being prepared. Power failures can occur without warning, and the financial impact can be far greater than expected.

If your business cannot afford the risk of losing power, now is the time to consider installing a properly designed backup generator system.

Genelite offers a range of reliable diesel generators and can assist with system design, supply and installation support to ensure your business stays protected.

Contact our team on 1300 305 912 to discuss the right backup power solution for your site.