#United States #Boston #AlphaStruxure #Food Processors #Energy Challenges

New Energy Challenges for Food Processors

The U.S. food and beverage industry is currently navigating through increasingly daunting energy challenges, as highlighted in a recent survey conducted by AlphaStruxure, Schneider Electric, and Endeavor Business Intelligence. This survey sheds light on critical issues such as grid congestion, escalating electricity prices, and wider economic uncertainties, which are all conspiring to delay expansions and impose strains on supply chains across the sector.

Key Findings from the Survey

With 145 senior energy decision-makers participating, multiple key insights emerged:

• - 57% of food processors planning to expand are struggling to secure power from the grid.
• - 52% mentioned that their electric utilities do not possess the capacity needed for growth.
• - 70% are facing waits of at least three years for necessary upgrades, with some experiences stretching to over six years.
• - 91% of respondents pay more than the average U.S. industrial electricity rate of $0.08/KWh, and almost half reported price increases of 26% or more over five years.
• - 81% rely on backup generators; however, 63% lack sufficient capacity for prolonged outages.

Food processing facilities once managed to secure utility interconnections with relative ease. However, the explosion of the AI sector has led to fierce competition among industries, particularly with data centers vying for limited electricity from the grid. This competition has drastically increased wait times for power and caused electricity prices to rise.

Systemic Energy Risks

Juan Macias, CEO of AlphaStruxure, commented on the ongoing energy crisis, stating, "This survey data points to the reality of systemic energy risk. The delays, outages, and unexpected rate hikes faced by food processors are becoming increasingly common. We know of processors that have commenced construction on new facilities only to learn they can’t secure power by the time they open. This is why we are witnessing a shift towards alternative energy solutions within the industry."

Moreover, David Cooper, the North America CPG Director at Schneider Electric, stated that, "America's aging grid and mounting demand are generating new risks for industries reliant on large energy consumption. We're noticing higher costs and more frequent outages, especially in states like California. Nearly half of the surveyed processors have witnessed energy costs skyrocket by over 25% within the last five years."

Focus on Sustainability

Despite these pressing energy concerns, the survey does reveal that sustainability remains a priority for food processors, with emphasis placed on fleet and facility electrification and achieving reductions in Scope 1 emissions. However, confidence in reaching these sustainability goals varies across the board.

The complete report titled Kilowatts into Calories: Surveying Food Processors on Energy Challenges is available from AlphaStruxure, Schneider Electric, and Endeavor Business Intelligence.

About AlphaStruxure

AlphaStruxure is at the forefront of delivering Energy as a Service (EaaS) and adeptly integrates microgrids, aimed at accelerating on-site energy infrastructure without excessive capital expenditure. Their projects notably include significant transit microgrids and systems catering to major international airports. With a headquarters in Boston, the company operates across North America, leveraging global capabilities in energy transformation.

About Schneider Electric

A global leader in energy technology, Schneider Electric strives for efficiency and sustainability by integrating electrification, automation, and digitalization in various sectors. Their robust technology portfolio ensures operational excellence, resilience, and sustainability in building infrastructures, data centers, and more, reflecting the principles of interconnected ecosystems. Schneider Electric is recognized as one of the world's most sustainable companies, with a workforce exceeding 160,000 professionals worldwide.

In summary, the food processing industry in the U.S. stands at a crossroads, grappling with a complex energy landscape exacerbated by technological advancements and competitive pressures. As food processors adapt, their pursuit of innovative energy solutions represents a significant shift towards a sustainable future.