Commercial entities adopt onsite power to mitigate grid volatility

Commercial and industrial entities are increasingly adopting behind-the-meter and distributed generation to mitigate grid volatility, rising utility rates, and interconnection delays.

Data center operators are specifically exploring dedicated onsite generation to gain control over capacity and deployment schedules. While these facilities may generate their own power, they often remain dependent on public transmission and emergency imports for reliability. This shift is prompting regulators, including FERC and PJM, to determine how co-located facilities should be treated regarding grid obligations and financial accountability for the public system.

In the commercial sector, onsite solar and battery storage are being used as physical hedges against natural gas price fluctuations. By utilizing onsite clean energy, companies can secure fixed electricity pricing for long-term periods, providing cost certainty and operational resilience compared to the unpredictable marginal costs associated with traditional grid-supplied power.