It is worth noting that sometimes small and medium-sized companies might not be as aware of these risks to their production as large businesses are. Furthermore, these smaller companies might not be able to negotiate in terms of the speed of the shutdown or power reduction in cases where power outages are imposed. Similarly, power companies may not know that smaller companies may face serious consequences in case of sudden power reduction or partial outage.
As an example, a bakery that is utilising high-capacity bakery tunnel ovens, can face multiple issues in a brownout event. Another issue, for example in the Nordic countries, can be from lower temperatures in buildings during the winter, which may also cause more freezing-related damage followed by mould.
Understanding the risks
Electricity is a vital component of modern life. For companies, it is critical to understand how well their operations can withstand a brownout or blackout.
The effect and consequences of a shortage of energy can vary considerably depending on the industry. Energy intensive industries, such as pulp and paper, can cut down energy usage rapidly. This can be done, for example, by stopping mechanical pulp production and/or other production equipment and instead selling their excess electricity capacity to the grid.
However, other industries may experience significant property losses due to a power outage. In these cases, energy usage can be more intense or fast, as is the case in steel mills. Such demand can lead to potentially significant losses, for example if the mill requires more time to be shutdown to allow for sufficient cool down.
Explains Kräling, “scenarios will vary based on the type of operations and equipment a company is using. However, severe business interruption due to equipment failure can result from a brownout. Therefore, preparation is key to managing operations during a brownout.”
Risks are often well known
Fortunately, risks are often well known among large companies and their energy providers. Normally, power companies know which companies are operating on the grid. Ideally, a controlled power outage or shutdown includes issuing communications to companies operating on the grid in advance to help prevent damage from brownouts.
Local authorities must also be aware of these potential catastrophes, which can lead to huge damages and consequential losses to crucial industries in their own country or region. Further indirect impacts on the local population and society can be severe if several large companies face an unexpected partial outage or reduced voltage supply.
Sometimes, it can be difficult to understand potential chain reactions or risks following an incident beforehand. For example, in industries supplying chemicals to other industries, when production is stopped, there may still be dangerous waste that must be processed afterwards. What are the consequences in later start-up if production has been stopped abruptly or in an extraordinary way? Understanding and evaluating all the potential risks and impacts thoroughly will help companies better prepare for the ‘worst case scenario’.