Enhancing Municipal Resilience Against Energy Volatility and Extreme Weather
Energy and operational resilience are becoming an urgent concern for municipalities as they grapple with increasingly severe weather. The 2024 State of the Cities Report revealed, however, that only 18% of mayors surveyed think their city is very prepared to face natural disasters. At the same time, “state and local governments across the U.S. are on the edge of a fiscal cliff, where rising expenditures and shrinking revenues collide.”
Municipalities with modernized, resilient facilities can avoid the worst impacts of extreme weather. What’s more, these upgrades can help local governments save an estimated 20-30% in day-to-day energy costs.
What is resilience?
Resilience is the ability to adapt to risks and threats that challenge day-to-day operations. For local governments, resilience can mean the ability to withstand weather-related disruptions and achieve budget stability despite energy cost volatility and uncertain funding.
Resilience includes considerations for both energy systems and operations:
- Energy resilience means keeping the lights on and premises secure, even through severe weather, natural disasters, and planned and unplanned power outages.
- Operational resilience means assuring the continuity of operations and public services by hardening facilities and proactively adopting strong preparedness measures that facilitate faster recovery.
Further reading: A Resilience Roadmap for Public Sector Leaders
How local governments benefit from resilient infrastructure
Energy resilience matters now more than ever as local governments nationwide struggle with the growing impacts of climate change across their critical services — from extended power outages to “boil water” alerts. Aging, legacy facilities and infrastructure are also making risk management even more challenging.
What’s more, energy costs are on the rise. In 2022, for instance, electricity prices increased by 14.3%--double the percentage of inflation that year. This year is likely to see additional increases. Deloitte projects that wholesale electricity prices will “increase by 19% on average between 2025 and 2028.”
Accordingly, investment in a resilient future can bring tremendous value to cities in both the short-term and long-term. Municipalities with resilient energy infrastructure, water systems, and facilities can avoid the worst impacts related to safety, cost, and critical service disruption. They will also see positive impacts on budget stability. Modernizing water infrastructure can prevent $250 billion in increased costs by 2039. Similarly, facility upgrades can help local governments save an estimated 20-30% in energy costs. Those savings can be reinvested to cover budget shortfalls in other areas, or into additional resilience improvements.
Further reading: How smart cities are taking action on natural disaster resiliency
Strategies to increase resilience across municipal facilities and services
The best resilience plans shore up operations against future risk, while also creating immediate impact by reducing operational costs, mitigating energy price volatility, and improving quality of life for building occupants.
Three ways local governments can grow energy and operational resilience:
- Modernize and weatherize buildings. Modernized electrical distribution infrastructure systems optimize the efficiency, reliability, and quality of electrical power. Cost optimization is another benefit of creating more resilient infrastructure.
- Incorporate multiple sources of energy. Decentralized energy sources — such as onsite solar panels, backup generators, and battery storage — create resilience because they minimize reliance on the grid and enable power continuity.
- Improve end-to-end energy management. Localities seeking complete energy resilience can leverage their investment in onsite solar and battery energy storage systems even further by deploying a microgrid. Microgrid controls can maintain power supply for critical services during prolonged grid interruptions, even allowing public buildings to “island” off the grid and operate independently for days.
In the context of extreme weather preparedness, resiliency improvements not only secure reliable power during times of disruption, but allow cities to recover and get back to normal operations more quickly after widespread disruptions.
Case Study: New Jersey Township sets a new standard for municipal resilience
The Path to a Resilient Future
Investing in resilient infrastructure is no longer optional for local governments—it’s essential. With aging systems, rising energy costs, and the growing impacts of climate change, municipalities must prioritize modernization to safeguard critical services, manage budgets, and improve community well-being.
Resilience not only protects against today’s challenges but also positions communities to thrive in an uncertain future. Now is the time to take action and lead the way toward long-term stability and growth.
Explore steps your organization can take today to build greater energy resilience. Download our new guide, A Resilience Blueprint for Local Governments, or contact us here.