Energy Cost Management

Contents

Strategies for stability in a volatile market

Businesses, especially those for which energy costs are a significant share of operating expenses, seek stable, predictable, and competitive electricity prices. Depending on the nature of the business and the environment in which it operates, stability and predictability are often prioritized over the absolute cost level. However, the reality is that, for various reasons, in recent years, the energy market has been characterized by significant volatility, both on a seasonal and intraday basis.

Companies can pursue various strategies to manage energy costs, the effectiveness of which depends on the specific characteristics and objectives of each company. Supply contracts constitute a core element of any energy strategy, as their structural features directly affect the final cost of energy. Additionally, companies have a range of tools at their disposal to help them achieve this, including power purchase agreements (PPAs), self-consumption models, and dynamic pricing contracts. These tools are of additional value and exhibit different characteristics when combined with flexibility, either through energy storage systems or flexible loads.

From insight to an effective energy strategy

Designing an effective energy cost management strategy requires an in-depth understanding of all the alternative options, as well as an in-depth assessment of consumption patterns and operational needs. Grant Thornton's experienced energy team will help you develop the most appropriate energy cost management strategy for your business.