Deep Understanding of Energy Dynamics is Critical
if the business has a significant dependency on energy and/or strong commitments to sustainability and decarbonization, a deep understanding of energy dynamics is critical component for decision making. This is because energy related factors – including utility rate structures and rules, market fundamentals, renewable energy (RE) availability, and grid reliability – can significantly impact long-term operational costs and sustainability outcomes.
Best Practices
The prominent ways that organizations seeking a new site can achieve their objectives are:
- Staying informed on energy markets and developing an understanding of utility tariff structures, forecasting future costs and knowing their competitive supply options.
- Evaluating availability and feasibility of on-site and off-site RE options as well as staying informed on policy incentives.
- Prioritizing grid reliability through analysis of historical outage data and weather events, whilst considering backup power solutions through distributed energy resources.
- Navigating supply connections and infrastructure through evaluation of grid connection costs, timing constraints and regulatory requirements.
- Understanding cost saving and revenue generating options through participation in demand-side programs and taking advantage of incentives.
