npower

Things are constantly changing in the energy sector with many new surprises such as the new Demand Turn Up scheme from National Grid. The idea is that during periods of high renewable generation when the Grid finds it has more energy than it can use, energy-intensive consumers would be encouraged to use more. By either turning off onsite generation from, for example, combined heat and power (CHP) plant or by running an energy-intensive process, such as smelting at a foundry or pumping water at a sewage treatment plant.

A pilot scheme which will run over the summer when wind and solar generation can be high and electricity demand is typically low. Participating businesses will be notified in advance of the extra available energy then, if they respond, they can boost productivity for minimal extra cost plus receive a payment for doing so.

Currently, on very windy days, when output from renewable generation is high the National Grid will turn large power stations down. Or wind turbines themselves may need to be turned off, simply because the power they generate cannot be used.

Filling the energy storage gap

As energy storage technologies become viable utilising energy management solutions it’s likely that storing this extra renewable energy until needed becomes a more cost-effective option. I recently blogged about a 640kWh battery storage system being trailed by Western Power Distribution at a solar farm in Somerset.

Although battery storage systems are predicted to become more efficient and the current high costs to fall, they are not yet able to provide a wide-scale commercial solution to balancing supply and demand. So it will be interesting to see how National Grid’s Demand Turn Up scheme fares.

If you are in any Industry sectors such as Energy Reduction in Manufacturing and looking for ways to reduce energy consumption, click here to find out more and get the information required.

 

There are numerous actions a business can take to reduce energy costs and Carbon Reduction WalesEnergy management Services plays a key role but it’s also important not to overlook the other end of the process – the steps you take before that precious energy even reaches you; that is, the deal you sign up to and the way you manage energy purchasing.

To do this thoroughly and professionally requires a fully integrated energy strategy that includes the energy purchasing cycle particularly Energy Reduction in Manufacturing.

         

There are numerous variables, enormous volatility in prices and an endless array of contract options. But while this may be daunting, getting it right can deliver major savings and significant competitive advantages.

The three aspects of buying gas and electricity that make them different from most other products or services you purchase are the timing of the purchase, your company’s appetite for risk and the skills and knowledge needed to get it right.

Timing
Timing is crucial because market prices fluctuate quickly and massively. Some changes are foreseeable, such as seasonal demand, while others, such as unrest in the Middle East, can sometimes be totally unforeseen and could send energy prices soaring in hours.

Consequently, you must clearly understand markets and the forces driving them and constantly monitor them to both take advantage of opportunities as they arise and avoid being caught flat-footed.

Risk
Different businesses have different appetites for risk and this has a profound influence on energy purchasing. Most contracts are either “fixed term” or “flexible”, the latter giving a degree of control over prices and potentially make savings – but at greater risk.

To find a contract with the right level of risk for your business you need to know the options available.

Skills and knowledge
Finally, if you are responsible for energy procurement you must be familiar with the myriad of different opportunities provided by energy suppliers and negotiate with them to get the best deals.

In all these things, familiarity, experience and industry knowledge are crucial. Energy purchasing has become an increasingly specialist full-time role and an industry of experts has grown up to operate between energy suppliers and business users. Companies like UES Energy constantly monitor market fluctuations and the full spectrum of suppliers’ contracts to help clients find the best options.