Taking control of your costs through smart energy procurement
Australian businesses are shopping around for better deals from their energy retailers and exploring more innovative ways to reduce their demand on the network.
Understanding how energy is priced, consumed, sourced and regulated is a must when it comes to negotiating a new energy supply contract and implementing demand management practices.
UNDERSTANDING THE ENERGY MARKET AND DEMAND PROFILES
The price businesses pay for energy is influenced by their demand profile and when and how they access the network. The more energy you use and the more volatile and unpredictable your load, the more energy retailers are likely to charge.
Companies such as Amcor and Oxford Cold Storage are focusing on a number of energy saving strategies to rein in their costs and improve their bottom line by:
- identifying energy saving measures so they use less and pay less
- managing and reducing their demand profile by shifting, shedding and shaving their energy loads to off peak times when prices are lower or minimizing their demand profile at peak times
- negotiating cheaper prices from energy suppliers through closer monitoring of the wholesale energy market to get the best and most flexible deal.
Managing overall energy demand by changing consumption in response to real time electricity prices can generate savings and potentially generate extra revenue if you have onsite generation capacity or the capacity to sell back unused energy.
However, you can’t manage what you don’t measure. Having detailed data on how and when energy is used allows companies to forecast their maximum consumption on a daily basis, identify where they can reduce demand on the network and get the best deal from energy providers.
See the following Amcor and Oxford Cold Storage case studies in the Energy Procurement section of EEX.