The size and pace of business expansion is leading some economic development organizations to rethink how to market industrial sites.
During the recent Consultants Forum that Area Development Magazine hosted, Chandler Green, a site selection manager with Deloitte, discussed how today’s environment affects expansion priorities and how EDOs and utilities can partner when responding to RFPs and hosting site visits.
Market force challenges
When a power-intensive business considers your community, Greene said, there are three key energy considerations:
- Ability to serve.
- Affordability.
- Reliability.
Our Alliant Energy team is here to help you answer questions about all three.
Ability to serve: A prospective company must be confident the power solutions will not present operational risk, Green said. That includes meeting the project ramp-up and operational schedules.
We invest to acquire industrial sites with the necessary acres and power infrastructure to accommodate today’s very large projects. We also work with local communities and EDOs to identify sites that, while not under our control, meet the expectations of a growth site.
We don’t stop there. Our planning teams assess the power infrastructure at and around these sites in advance so we can confidently answer such common questions as, How far away is the substation? What is the voltage? How long will it take to receive service? As Green said, clear, concise communication is key.
Affordability: Energy prices are a significant cost driver for power-intensive businesses, and up-front infrastructure costs can exceed $100 million. Also important is the ability to meet renewable energy goals cost effectively.
When a company considers locating in our service territory, some projects may be eligible for a construction allowance to offset infrastructure costs.
When it comes to renewables, few large utilities have a better story to tell. Nearly half the power we delivered to customers in 2023 came from renewable sources, primarily wind and solar, and we continue to invest in renewable generation.
Reliability: Power must be there when needed. Outages and brownouts can lead to millions of dollars in lost product and revenue.
We carefully track our reliability statistics, but nothing compares to customer endorsements. Every year, our account managers and company leaders meet with some of our business and industry customers and always ask, How reliable are we? Our customers consistently tell us they’re pleased with the reliability we offer.
In the rare case that your community has experienced reliability challenges, in keeping with Greene’s guidance, our team is ready to explain what happened and what is or may be done to correct the situation.
At Alliant Energy, we’re dedicated to working with new and existing business customers and economic development partners to meet energy demands for each potential expansion opportunity. The sooner you bring us into the conversation, the more we can do to differentiate your community and organization for the better.