As utilities work to expand capacity and modernize aging infrastructure to meet growing demand, they face a new imperative: doing more with every dollar invested. Analysts project capital expenditures by U.S. investor-owned electric utilities will reach $1.4 trillion between 2025 and 2030, nearly twice the amount spent during the entire previous decade.
To maintain today’s investment momentum and strengthen reliability and resilience, utilities have an opportunity to look beyond cost control and pursue strategies that deliver broader long-term value. That means seeking systems that maximize output, efficiency and uptime.
In today’s energy landscape, fuel cells are becoming increasingly relevant. They provide modular, reliable power that helps utilities extract more value from their investments while addressing rising demand and aging infrastructure. With high electrical efficiency, modular design and exceptional reliability, advanced fuel cell systems enable utilities to generate more value from their assets and streamline their day-to-day operations.
Powering More with Less: Fuel Cells Redefine Efficiency
Fuel cells outperform traditional combustion-based generators by converting fuel into electricity through an electrochemical reaction, rather than by burning it. This translates into roughly 15% to 20% higher efficiency than most open-cycle gas turbines or reciprocating engines. That improved conversion efficiency means each kilowatt-hour requires less fuel, increasing energy productivity and reducing exposure to fuel-price swings.
Among the various types of fuel cells, solid oxide fuel cells(SOFCs) offer the greatest advantages. Operating at high temperatures and utilizing a solid ceramic electrolyte, rather than relying on precious metals, corrosive acids or molten materials, SOFCs are a modern technology that converts fuels such as natural gas or hydrogen into electricity with exceptional efficiency and durability. Conversion efficiencies can reach up to 65% and when integrated with combined heat and power (CHP) configurations, the total system efficiency can exceed 90%.
Meeting Demand Faster with Fuel Cells
With demand surging, the speed and reliability of adding capacity is critical for utilities. Large-scale generation and transmission projects, while essential for long-term planning, often take a decade or more from conception to commercial operation. SOFCs offer a faster, more adaptable solution.
Each SOFC system is built from modular building blocks. These independent fuel cell units can be added, replaced or redeployed as needs change. This flexibility enables utilities to meet load growth needs rapidly while maintaining control over capital allocation and system reliability.
Because SOFCs are compact, quiet and produce near-zero emissions, securing installation permits is simpler than for large, noisy engines or turbines that emit particulates and pollutants such as SOx and NOx. Their minimal environmental impact also makes it easier to gain community approval, reducing overall project timelines.
Once permitted, fuel cells enable utilities to deliver power quickly to high-growth customers, such as data centers and industrial hubs. Bloom Energy, for example, can enable a utility to deliver 50 MW of islanded capacity in as little as 90 days and 100 MW in 120 days. This agility enables utilities to respond rapidly to new loads while avoiding the long lead times and financial exposure associated with traditional generation and transmission projects.
When skid-mounted, the “copy-and-paste” architecture of modular fuel cell systems, such as Bloom Energy’s SOFC Energy Server®, also allows utilities to add capacity when and where it’s needed. Utilities can scale systems incrementally, from hundreds of kilowatts to hundreds of megawatts or move modules to new sites as demand shifts. This flexibility maximizes asset utilization and optimizes overall portfolio performance.
Delivering Always-On Power with Minimal Overbuild
The modular design of SOFCs “allows for high reliability without a great amount of overbuild,” said Rebecca Stamps, Senior Director of Product Marketing at Bloom Energy.
The inherent redundancy of SOFC systems requires less overbuild to deliver uptimes of up to 99.9%. “This translates directly into less downtime and provides customers with resilient 24/7 onsite power,” Stamps said.
By comparison, gas turbines typically require 30% to 50% overbuild and reciprocating engines 20% to 30% to achieve similar reliability.
SOFCs are also efficient to maintain. With no moving parts, SOFC modules can be hot-swapped without a complete system shutdown, eliminating maintenance downtime. As a dependable primary power source, they also remove the need for separate backup systems and their associated maintenance and operating costs.
Energy Server systems require no additional water during normal operation, nor is onsite staff needed to manage the systems, a critical advantage as utilities face ongoing labor constraints.
“Bloom Energy can guarantee both the electrical output and heat rate of our fuel cells for the term of the contract, so there’s never a dip in service and customers’ expenses are predictable — there’s nothing hidden or unexpected,” Stamps said.
Maximizing Value Through Smarter, More Efficient Power
Each dollar utilities invest today must deliver more: more capacity, more uptime and more efficiency across increasingly complex portfolios. Fuel cells are engineered for that challenge. With modular redundancy, SOFC systems provide resilient 24/7 onsite power while simplifying asset management and accelerating project delivery.
With high electrical efficiency, modular flexibility and exceptional reliability, Bloom Energy’s SOFC Energy Server delivers a practical, high-efficiency solution that enables utilities to extract maximum value from both fuel and capital, while minimizing maintenance, downtime and overbuild.
Contact Bloom Energy to learn how modular fuel cell systems can help your utility achieve more with every dollar invested.
