Propane is a Sustainable Choice for Growing Microgrid Need

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Commercial construction professionals can rely on propane for lower emissions, enhanced resiliency

Commercial buildings are experiencing more and more unplanned power outages and it’s causing incredible strain on an already fragile electrical grid. In fact, the United States endures more blackouts than any other developed nation. And according to federal databases at the Department of Energy (DOE) and the North American Electric Reliability Corporation (NERC), the number of U.S. outages lasting more than an hour have increased steadily over the past decade. This has construction professionals looking to build more resilient buildings and one way to do that is microgrids.

A microgrid is a local energy grid with control capability, which means it can disconnect from the traditional grid and operate autonomously. Within microgrids are one or more kinds of distributed energy—solar panels, wind turbines, combined heat and power, and or, generators—that produce power and often energy storage solutions. This is helpful during sudden or planned power outages. The quest for a more reliable, secure, and clean energy system is driving investment in microgrid technologies that can deliver superior reliability and resiliency for the nation’s aging and vulnerable grid.

Propane, which is easily transported and stored on site for indefinite periods of time, offers economic and environmental benefits that make it a great low-carbon energy source for microgrids. The Propane Education & Research Council (PERC) has an analysis called, The Opportunity for Propane in Microgrids, that illustrates the benefits of using propane generators in hybrid microgrids in commercial applications. Propane offers lower emissions, comparable levelized costs of electricity, and added resiliency compared to diesel. It also helps minimize the impact of a power outage to a commercial building’s vital systems like smoke and fire detection, elevators, refrigeration units, heating and cooling equipment, health and safety equipment, communications, and many other applications.

Propane is an environmentally friendly energy source

Severe weather events coupled with natural disasters have led to increased electrical grid failures. Whether planned or unplanned, power outages can happen at any time. In response to the outages, there’s been a spike in generator sales. The rise is seen in storm-wrecked coastal areas, inland tornado alleys, and particularly in places like California and Texas with increased penetration of renewable energy. For many years, diesel has been the chosen generator fuel. As more and more diesel generators are being purchased, their harmful emissions are impacting local communities. According to data from PERC, propane is the better option and can help lower emissions.

A new study from PERC called, Power Generation: The Emissions Shifting Problem, looks at the recent trends in power generation, microgrids, and how propane systems can offer a low emissions and resilient solution for commercial construction professionals and their customers. Compared to diesel, propane significantly improves local air quality by mitigating nitrogen oxides and particulate matter which are known health hazards. Propane also emits significantly less carbon than diesel-powered generators. According to the U.S. Energy Information Administration (EIA), propane is 16 percent cleaner than diesel when it comes to CO2 per unit of energy.

Microgrids that utilize propane as an energy source get even cleaner when renewable propane is considered. Renewable propane is made from a mix of waste residues and sustainably sourced materials—including agricultural waste products, cooking oil, restaurant grease, and animal fats. Because it’s produced from renewable feedstocks, renewable propane is even cleaner than conventional propane—and far cleaner than other energy options. Renewable propane’s chemical structure and physical properties are the same as conventional propane, which means it can be used for all the same applications without any modifications to engines or equipment.

In its 2021 wildfire mitigation plan report, Pacific Gas & Electric (PG&E) identified that a technology combination of solar photovoltaic (PV) and battery energy storage with supplemental propane gensets is not only the most cost effective and reliable solution for initial remote grid sites, but also the cleanest.

Propane is a safe and resilient energy source

Microgrids help improve the resiliency of local electricity distribution systems, that’s part of why they’re growing in popularity. They represent a groundbreaking approach that helps solve several of the problems facing California’s cities.

To provide an alternate power solution to customers located in Mariposa County, solar energy company BoxPower and generator manufacturer Generac provided solar PV with battery backup and a propane generator as a solution to reduce wildfires in one of California’s high-risk areas. Instead of ruggedizing the transmission and distribution (T&D) lines, which could cost more than one million dollars per mile in remote locations, electric utilities deenergized the T&D lines and installed these microgrid solutions to avert forest fires. Based on the success of the microgrid applications, PG&E plans to install 20 more in the next year.

Ultimately, microgrid systems provide peace of mind. Propane power generation equipment used in microgrid applications can help businesses increase safety and resiliency allowing them to retain their clean operation even with a power failure. Propane is an affordable energy choice capable of delivering efficient, on-site energy at all times, including during power outages. Replacing diesel assets with propane-powered equipment will continue to push us toward significant air quality improvements and decarbonization.

To see more of PERC’s research supporting the benefits of using propane in microgrid applications, visit

Bryan Cordill is the director of residential and commercial business development at the Propane Education & Research Council. He can be reached at

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