Energy demand fluctuates with the seasons, and businesses must be prepared to manage the impact.
In summer, electricity demand peaks due to air conditioning use, while in winter, gas demand often surges for heating. In regions where electric heating is common, electricity demand can also rise significantly during colder months.
These seasonal spikes put strain on energy supply systems, driving up prices and increasing the risk of disruptions. For instance, heatwaves can cause electricity demand to surge, while cold snaps like Winter Storm Elliott in 2022 strained both gas and electricity systems, leading to power outages and rolling blackouts in some regions.
To avoid unexpected costs and operational challenges, businesses need to implement energy procurement strategies and take part in peak demand response programs to manage energy use effectively.
Why Energy Procurement and Peak Demand Response Matter
Managing energy costs during peak demand periods requires a comprehensive approach. Businesses that adopt the right energy procurement strategies and participate in peak demand response programs can not only lower costs but also contribute to grid stability, ensuring they are ready for anything.
Seasonal Strategies for Energy Procurement and Peak Load Management
|
Strategy |
Description |
Summer |
Winter |
| Peak Demand Response Programs | Participate in programs that incentivize reducing energy usage during peak periods. | ||
| Energy-Efficient Equipment | Upgrade systems like HVAC and lighting to lower energy consumption. | ||
| Load Shifting Practices | Schedule energy-incentive processes during off-peak hours to avoid higher costs. |
Year-Round Energy Procurement Strategies
Whether preparing for summer’s electricity demands or winter’s heating challenges, well-planned energy procurement strategies can help businesses manage costs:
- Fixed vs. Variable Contracts: Fixed-rate contracts provide stability against price spikes, while variable-rate options can offer savings when market prices are low. Choosing the right approach depends on a company’s risk tolerance and usage patterns.
- Hedging Strategies: Locking in rates for a portion of energy needs provides cost certainty while allowing for flexibility to adapt to market conditions.
- Energy Storage Solutions: Battery storage allows businesses to store energy during off-peak hours and use it when demand (and prices) spike.
- The Role of Energy Advisory Services: Energy advisors, like the experts at Pilot Energy, provide insights on when to secure rates and how to structure contracts to mitigate seasonal risks, ensuring businesses maintain control over energy costs.
How Pilot Energy Can Help
At Pilot Energy, we work closely with our clients to create customized energy procurement strategies that include peak load management. Our goal is to help businesses stay productive while managing their energy use effectively. From tailored solutions to exploring energy storage options, we make sure our clients are ready for whatever the weather throws their way.
Here’s what our energy advisory services offer:
- Energy Market Intelligence: Stay informed on market trends and price fluctuations with our in-depth knowledge and risk assessments.
- Energy Procurement Strategy: Comprehensive assessments find energy cost reduction opportunities, guiding supplier selection, negotiation, and contract structuring.
- Supplier Management: We oversee supplier relationships, evaluate performance, and use analytics to monitor key metrics and support budgeting.
- Ongoing Monitoring and Management: Our commitment doesn’t end when the contract is signed. We provide ongoing monitoring, management, and support, ensuring you have a trusted partner today and tomorrow.
More About Pilot Energy
Founded in 2001, Pilot Energy delivers unbiased and independent energy advisory services that empower leaders to confidently know when, where, and how much energy to purchase by leveraging our unique blend of industry knowledge and innovative digital platforms. Putting our know-how to work daily, we drive clarity and control in decision-making and take pride in providing unparalleled personalized service. Guiding businesses with strategic innovation while committing to sustainable solutions.
Ready to discuss energy procurement strategies and peak load management? Schedule a consultation with our energy experts today.
