Distribution & Logistics

Distribution and logistics facilities are critical supply chain hubs that depend on having 100% reliable electricity. Scale’s advanced microgrids provide fast, automatic transitions to backup power while locking in lower electricity costs.

Rising Electricity Risks

Distribution and logistics facilities place a premium on electricity reliability and power quality, as even brief power outages can lead to cascading delays, lost revenues, and angry customers.

Annual Hours of Power Outages for Average US End-User

Trendline Average Outage Hours/Year
2014: 3.9hrs; 2015: 3.3hrs; 2016: 4.4hrs; 2017: 8.2hrs; 2018: 5.7hrs; 2019: 4.8hrs; 2020: 7.5hrs; 2021: 7.8hrs; 2022: 5.5hrs; 2023: 6.1hrs; 2024: 11.0hrs.

Average outage hours per year

Direct Costs

Indirect Costs

Lost revenues from shipping delays, missed transactions, etc.
Supply chain disruptions create costly ripple effects with partners and customers
Loss of product due to spoilage or damages
Expediting fees to make up for lost time and shipments
Lost productivity from idled employees receiving wages
Penalties for failing to meet Service Level Agreements or compliance standards
Cost to recover including system restart costs and overtime/contractor pay
Reputational damage from erosion of customer trust

C&I Electricity Rate Increases

Commercial 2006–2020 Industrial 2006–2020 Commercial 2020–2025 Industrial 2020–2025
Commercial costs rose from ~9% in 2006 to ~55% in 2025. Industrial costs rose from ~7.5% to ~50% by 2025.

% cost increase relative to base year

Annual Hours of Power Outages for Average US End-User

Trendline Average Outage Hours/Year
2014: 3.9hrs; 2015: 3.3hrs; 2016: 4.4hrs; 2017: 8.2hrs; 2018: 5.7hrs; 2019: 4.8hrs; 2020: 7.5hrs; 2021: 7.8hrs; 2022: 5.5hrs; 2023: 6.1hrs; 2024: 11.0hrs.

Average outage hours per year

Average US outage hours are at their highest level in over a decade, with almost every region of the country experiencing a year with 8 or more hours of outages in recent memory.

Almost 80% of outages are caused by severe weather events, and the number of these outages have doubled over the last decade.  

Direct Costs

Indirect Costs

Lost revenues from shipping delays, missed transactions, etc.
Supply chain disruptions create costly ripple effects with partners and customers
Loss of product due to spoilage or damages
Expediting fees to make up for lost time and shipments
Lost productivity from idled employees receiving wages
Penalties for failing to meet Service Level Agreements or compliance standards
Cost to recover including system restart costs and overtime/contractor pay
Reputational damage from erosion of customer trust

The cost of outages can really add up for distribution and logistics facilities, especially as warehouse operations become more automated and supply chains become more interdependent.

These costs include both direct costs, such as lost revenues and idle workers, and indirect costs, including expediting fees, SLA penalities, and reputational damage.

C&I Electricity Rate Increases

Commercial 2006–2020 Industrial 2006–2020 Commercial 2020–2025 Industrial 2020–2025
Commercial costs rose from ~9% in 2006 to ~55% in 2025. Industrial costs rose from ~7.5% to ~50% by 2025.

% cost increase relative to base year

Utility rates are skyrocketing, far outpacing inflation with increases of over 25% increase nationally over the past 5 years - and over 50% in the mid-Atlantic, northeast, and California.

The fastest-growing components are demand-based charges (including capacity charges) and fixed costs, challenging traditional energy cost management strategies.

Redefining Resilience

Scale’s advanced microgrids provide fast, automatic transitions to backup power while locking in lower electricity costs, making distribution and logistics facilities resilient to today’s growing energy risks.

Optimized Cost Savings

Lock in fixed, lower energy costs and adapt to changing rate structures

Enhanced Reliability

Fast transitions to backup power protect your critical operations from disruption

Faster Time-To-Power

Power new facilities or expansions ahead of utility service to avoid delays

Advanced Microgrids

Scale’s advanced microgrids are integrated systems of on-site energy infrastructure, with multiple distributed energy resources (DERs) such as solar, battery storage, and generators, and optimal dispatch via customized controls.

Solar

Typically the cheapest source of kilowatt-hours, solar arrays lower energy costs and improve sustainability by generating zero-emission power from the sun.

Pairing solar with optimized battery storage is key to maximizing its value, particularly where regulations have reduced the value of solar-only systems.

Battery

With or without solar, battery storage lowers energy costs by reducing grid use during the hours of the day, month, and year when utility prices are highest.

Batteries can also provide near- instantaneous transitions to backup power, eliminating disruptions to operations when the grid goes down.

Controls

Microgrid controls optimize dispatch of each resource to maximize value, provide fast, automatic transitions to backup power, and enable speed-to-power for facilities without grid access.

Scale's industry-leading expertise allows us to configure these controls in-house, customizing them to the specific needs of each customer facility.

Generator

Fuel-based generators provide a source of unlimited-duration backup power for extended outages. Generators also provide prime power to off-grid systems.

Scale can integrate existing backup generators or new, low-emission natural gas gensets we design and commission in-house for maximum reliability.

A Distribution Facility Case Study

QCD is one of the premier providers of last-mile freight and distribution services for iconic restaurant brands across the US. Scale's first-of-its-kind microgrid at QCD’s Los Angeles-area facility will supply power to chargers for a fleet of 30 Volvo VNR Electric delivery trucks, while also providing enhanced reliability for the refrigerated warehouse. Importantly, the microgrid allowed QCD to begin powering its trucks faster than if it had waited for a utility service upgrade, and it will deliver cost savings and emission reductions compared to utility power. 

Learn More

The next level of on-site energy.

Backup Generator

Reliability

Advanced Microgrid

True Resilience

Solar

Cost Savings
Unlimited duration backup
Unlimited duration, low-emission backup via multiple DERs
No backup capability
Power lost for seconds/minutes as generator ramps up
Fast, automatic transition ensures no loss of power
No backup capability
An added cost, like insurance
Optimized cost savings every day with solar plus battery storage
Cost savings when sun shines

Full Lifecycle Support

Scale provides advanced microgrids under a microgrid-as-a-service model, under which we take full responsibility for the entire project lifecycle, from design and construction through long-term ownership and operations. 

This service model enables manufacturing industry customers to eliminate up-front costs and minimize risks by leveraging Scale’s industry-leading expertise, proprietary software platform, and capital resources to ensure successful advanced microgrid projects.

Design

Build

Operate