Storms Highlight Need for Propane Backups

As Winter Storm Fern brought arctic cold, ice, and heavy snow across much of the United States, the US Department of Energy (DOE) took steps to bolster grid reliability in Texas and other regions. On January 24, Energy Secretary Chris Wright issued an emergency order to support the Texas electricity grid and help prevent widespread power outages during the severe weather event. Without clean power from propane generators, datacenter operators were forced to resort to backup diesel generation, posing risks to the community.

Winter Storm Fern caused surging demand for electricity as millions of Americans turned up heating systems in frigid conditions, placing intense strain on regional grids. In Texas—where the grid is managed by the Electric Reliability Council of Texas (ERCOT)—the risk of shortages prompted federal intervention. While ERCOT officials did not immediately forecast imminent rolling blackouts, DOE determined that proactive measures were necessary to mitigate the risk of power disruptions and protect public safety. Under the authority of Section 202(c) of the Federal Power Act, the emergency order authorized ERCOT to deploy backup generation resources from industrial facilities, especially focusing on data centers and other large consumers to supplement the grid if needed. These backup generators, typically kept on standby for power outages, can supply substantial electricity during peak demand periods, helping avoid forced outages for residential customers. The emergency order was effective from January 24 through January 27, giving ERCOT targeted authority to direct backup generation as needed.

DOE estimated that more than 35 gigawatts of unused backup generation capacity existed nationwide that could be tapped to support grid reliability through the duration of Fern and subsequent storms through the end of winter. One gigawatt is roughly enough to power about 750,000 homes, meaning the total potential resource could play a significant role in preventing shortages. Secretary Wright emphasized that maximizing available generation resources was essential “to keep Americans safe during Winter Storm Fern.” He framed the action as part of broader federal efforts to ensure affordable, reliable electricity during periods of extreme weather.

Although Texas’ grid did not experience widespread, extended outages during Fern, unlike the catastrophic collapse seen during Winter Storm Uri in 2021, localized outages still occurred in parts of the state, particularly in East Texas. Many residents endured power losses for hours or days as crews worked to restore service amid icy roads and fallen trees.

Similar authority to leverage power from large consumers like datacenters has been granted to grid operators in the Mid‑Atlantic, New England, and the Carolinas to deploy backup power or run generators beyond normal limits to reduce the risk of blackouts as cold weather persists through this week and demand strains the collective grid. As 150 million people remain under weather advisories and extreme cold warnings through the first week of February, the risk to life is paramount without proper heating fuel and emergency power. Propane remains a vital lifeline along the Gulf Coast where temperatures have dropped 15 to 30 degrees below normal averages, striking the heart of major population centers. Meanwhile, a bomb cyclone continues to leave its effects in the Carolinas after dropping a more than a foot of snow, contributing to thousands of flight cancelations and increased strain on the electric grid from populations drawing heavily on electric heating pumps and all-electric apartment services.

Energy officials have emphasized that grid reliability remains a priority as extreme weather patterns, including more intense winter storms, continue to test infrastructure. This highlights a dangerous situation for datacenters and ratepayers alike—ensuring that enough backup power generation and fuel is available to continue operations when the power authority cuts them off. As major consumers of electricity, datacenters will continue to be first on the block in extreme situations and rolling outages. As datacenters develop along residential and high-use corridors in the Texas Triangle, Northern Virginia, California, and elsewhere, the need for cleaner alternatives to diesel is becoming paramount. As presented in the whitepaper Powering the Digital Age: Propane’s Role in Low-Emission Data Center Infrastructure, propane offers the easiest, cheapest, cleanest solution possible at scale with no need for grid reliance or competition for power supply with ratepayers.

To learn more about propane’s role in the data center revolution, contact Nicholas Edward, manager of grants and agency engagement, and Austin Wicker, senior manager of state government affairs, at [email protected] and [email protected].