For guests, uninterrupted electricity is not a luxury. It powers air-conditioning, lifts, wifi, hot water, refrigeration, security systems and the ever more vital work-from-home setup. But “24/7 power” isn’t just one line item for serviced apartment operators. It’s a layered system and it’s an expensive one.
The first cost is obvious: the electricity bought from the grid. The second is less obvious. Buildings will also have to pay for backup generation, fuel storage, batteries, switchgear, maintenance contracts, engineering staff, testing, and eventual replacement of equipment. In markets with unreliable grids, these costs can be equal to or greater than the utility bill.
The diesel generator is especially expensive when it is under light load. A conventional diesel engine only turns about 35-40 per cent of the fuel’s energy into electricity. One liter of diesel contains about 10 kilowatt-hours of energy. A generator may produce only about 3-4 kWh of electricity out of . . . before accounting for maintenance and distribution losses . That can make power generated by yourself several times more expensive than grid electricity at current fuel prices.
And the environmental cost is tangible, as well. According to UK government conversion factors, burning one liter of diesel produces about 2.7 kilograms of carbon dioxide. Generators also create nitrogen oxides and particulate matter, as well as noise and vibration, all of which affect guest comfort and may breach local air quality or planning regulations.
Battery storage changes the equation, but not removes it. Lithium-ion systems can provide near instantaneous backup, reduce generator run-time and help control peak demand. But batteries need large upfront capital and have finite lives. Their economics depend on cycling frequency, temperature, financing costs and the spread between peak and off-peak electricity prices. They are ideally sized to carry every apartment forever and strategically placed.
The model of “having everything run at all times” is generally not the most efficient. It is to set critical loads. Priority should be given to emergency lighting, lifts, fire systems, access control, refrigeration, communications and selected heating or cooling. Less critical loads like decorative lighting, laundry equipment or empty apartments can be curtailed automatically.
Energy efficiency is the cheapest resilience. Efficient air-conditioning, occupancy sensors, smart thermostats, LED lighting and insulated façades reduce normal consumption and the size of the backup system needed. Buildings account for around 30% of global final energy consumption and 26% of energy-related emissions, according to the International Energy Agency. Cutting demand therefore improves margins as well as sustainability credentials.
Operators should calculate the cost per delivered kilowatt-hour not merely the generator’s purchase price. That calculation should include fuel, servicing, breakdown risk, staffing, financing, emissions compliance and replacement. They should also measure reliability: how many minutes of outage are avoided, and which guest-facing services remain available?
The strongest business case for 24/7 power is not unlimited electricity. It is dependable, intelligently prioritised power. In serviced apartments, resilience is valuable but only when its full cost is visible.