energy data Archives

The importance of access to energy data

Posted on 16th May 202216th May 2022 by Sophie Wyatt

The energy grid is evolving, and systems will have to adapt as we move towards a more flexible energy landscape. Data-driven energy optimisation could be the key to business profitability, as well as deep carbon reductions.

Climate change and net zero targets are at the forefront of the minds of consumers and investors. What this effectively means, is that energy performance is now an operational and commercial priority in building intelligence. Data analytics are crucial for businesses wishing to advance this intelligence.

Let’s take a look at the benefits you can reap from taking control of your data.

Become more efficient

Accessing and understanding data across multiple sites can bring a whole host of benefits. One of the most beneficial advantages is the opportunity to run your business more efficiently.

Efficient energy management can happen anywhere at any time. Energy data and analytics need to be readily available for businesses to obtain the full advantages. Through targeting the data of your sites, you can see where you are using the most energy, when, and for what reason. This makes it easier to identify and remedy areas of waste – making your business more sustainable and future-proofed as a result.

Cut costs

Having quick and easy access to your data is essential for every company. One by-product of becoming more efficient, is the reduction of unnecessary costs. Reducing energy waste in your business automatically reduces any costs attributed to that waste. This frees up money, which can be reinvested in other areas of the business.

Effective data management will help to inform your business decisions, keep your energy costs low and help you to future-proof your sites. Understanding data – not only from your online systems, but also from your bills, for example – can help your business to avoid charges for consumption in peak demand periods, as well as identifying waste usage. Thousands of pounds can be saved through analysing data, as it can identify spikes in wasted energy usage.

Increased transparency

As we move towards a new era of sustainability in business, it is essential for organisations to be as transparent as possible with their clients and potential investors. Transparency about your sustainability efforts can help your business to connect to customers on a deeper level. Offering accountability has been proven to encourage people to opt for certain businesses over their more reserved competitors.

Research has found that 94% of consumers are more likely to be loyal to a brand that is completely transparent. With a consumer market that is focused on sustainability now more than ever, transparency in terms of sustainable goals is key.

Where does EIC come in?

Reducing your energy consumption is a simple and effective solution to reducing costs – if you know how. Finding simple ways around constantly rising prices can often be confusing and time-consuming. But it doesn’t have to be.

At EIC, our goal is to help companies navigate the best routes for themselves and their business plan. We recognise that while there is a broad range of reasons as to why energy prices are rising, we can help our clients return their business strategies to normal.

Get in touch today to find out more. Also, head over to our piece on the changes to the TCR mandates to find out more on how this will affect you.

The energy crisis: how did we get here?

Posted on 28th September 202128th September 2021 by Julie Crowhurst

If you are concerned about the rising prices, you are not alone.

As the world reels from the biggest price rise in electricity and gas in over a decade, our expert analysts take a look at some of the reasons behind the sudden surge and what the future could hold in store.

European storage inventories are well below average

Graph showing European storage levels — European storage

There were strong withdrawals in Q1 2021, as colder temperatures settled over Europe. At the same time, Asia was experiencing similar conditions. Japan had a very cold January along with several outages, which led to an immediate need for LNG to boost gas power generation.

As a result, LNG deliveries to Europe slowed down and the region had to rely on more stored gas. The early part of Q2 2021 saw persistent colder temperatures, low wind and maintenance, leaving little surplus to make its way into storage.

By the time injections started there was already a shortfall and the pace of injections has not been enough to shut down this deficit.

European storage is vital to ensure some security of supply over winter, especially if there are supply issues from other sources. Storage is also needed to top-up supply, when demand is high.

Reduced gas supplies this summer

Part of the reason for the lacklustre injections is the heavy maintenance in many gas-producing regions during this summer. Covid restrictions hampered maintenance schedules last summer and many sites were running strong through the colder winter that followed.

In addition to the shortfall in supply, LNG deliveries to the UK and Europe were drastically reduced, particularly during this quarter. This fall in import volume is due to a marked increase in demand for LNG in Asia this year. This demand growth is largely due to China ramping up its economy post-Covid, as well as other regions replenishing their depleted stock levels.

Weak renewable generation this summer

Wind & gas output comparison table — Power output comparison table

In recent years, the UK has increased its wind capacity to about 25% of the generation capacity. This summer has seen some of the lowest wind speeds, with the likes of Orsted – who have invested heavily in wind generation – reporting lacklustre returns this summer.

The graph above highlights the drop in wind output, especially in Q3 2021, and the increased need for gas generation. As a result, the need for gas to generate power has been elevated at a time of tighter gas supply.

Supply margins in the UK were extremely tight last week, and as a result, we saw some unprecedented price levels – as shown below in the UK day-ahead power price. System prices were as high as £4,000/MWh at peak times.

Day ahead forecast — UK day-ahead power price forecast

Increased cost of substitute sources of power generation

In parts of Europe, there has been an increased reliance on coal and lignite power generation. On the back of various policy moves, the price of carbon allowances in Europe has also surged. This year alone, prices have doubled. As a consequence, it has become increasingly expensive for fossil-fuelled power generation. Gas prices have risen so strongly that it has become more profitable for coal and lignite power generation in Europe (which are more polluting) instead of gas.

The UK and European governments manage the supply of carbon allowances. With a current policy of zero carbon, it is difficult to see governments increasing the availability of allowances.

Russian gas supply

Despite the surge in gas prices across Europe, Russian supply volumes have not responded to demand. In July and August, there was maintenance on both Nordstream 1 and Yamal pipelines that saw substantial declines in Russian volumes, exacerbating the tight gas market.

The domestic Russian gas market is also under relatively tight conditions. Russian domestic storage was heavily drawn last winter and there has been some delay in replenishing them, due to heavy summer maintenance.

There has also been a reluctance to increase flows across the Ukrainian and Polish routes. In the meantime, with the completion of Nordstream 2, a preferred alternative route is ready. But there are some legal hurdles that need to be overcome, denting market hopes for the start of the fourth quarter.

What’s next?

There is a substantial risk premium priced into this winter, given all these factors so far. There is also an underlying uncertainty of how and when these will resolve, in the face of an unknown winter demand.

A mild and windy winter will allow for more wind generation and reduce some of the demand for heating. However, periods of cold and still conditions will see supply margins drop and system prices record high prices once more.

Gas could start to flow through Nordstream 2 this winter. But will this merely displace gas that is currently moving through one of the other routes to Europe? Or will supply increase significantly, once domestic reserves are met?

It is likely that this winter will see an increase in price volatility, with price swings in either direction.

For advice on how your business can respond to changing energy prices, contact EIC today.

This article was written by the Market Intelligence Team

5 ways to proactively manage your non-commodity costs

Posted on 19th August 201913th November 2019 by Chris Taylor

Taking proactive control of your consumption is as crucial as buying at the right time. There are a variety of options to help manage and mitigate the impact of these charges to your business. Here we explore our top 5 tips to better manage your non-commodity charges.

Choose your energy contract wisely
It’s important to think carefully about your non-commodity costs when securing your energy supply contract. There are many options available ranging from fully fixed to pass-through. It is important to make sure you’re comparing apples with apples when assessing contract offers and that you ensure you know which option best suits your business before committing to a contract. It’s vital to consider your wider energy strategy, a fully fixed contract could limit the potential gains from being more proactive.
Better understand your energy data
Unlock the true potential of your energy usage. Gathering data is one thing, translating and interpreting it is another. An Intelligent Bureau uses clever analytics, algorithms, and artificial intelligence programming to unearth serious business insights that turn your site into an intelligent building, delivering powerful savings, and uncovering new and previously unexplored opportunities for additional revenue. Practical solutions could include a kVa capacity review or reactive power analysis to undercover the need for power factor correction equipment.
Install the right technology to future proof your business
Transform your data into real-time insights; saving carbon, energy, and other operational costs. Intelligent Building Controls can potentially deliver 20% savings on your operating costs with an ROI under 12 months. Plus additional infrastructure such as wind, solar, battery storage and LED lighting can also help to reduce your usage, cut costs and support net zero carbon targets.
Start to load shift and load shed
Reduce inefficiencies in performance by managing out of hours’ consumption and shifting or shedding consumption when prices are greatest at certain times each day. Around 10,000 UK firms could make around £20,000 a year in cost savings or revenue by moving or curtailing power use at peak times, according to 2017 analysis by SmartestEnergy.
Take advantage of Demand Side Response (DSR) opportunities
You can get paid if you’re able to reduce consumption from the electricity grid at busy times when the national demand for energy is at its peak or to help National Grid manage system frequency. There are plenty of schemes on offer so you’ll need to decide which is the right fit for your organisation and how best you can react when you need to manage your demand levels. It’s easier if you have Intelligent Building Controls and back-up generation or storage to support your strategy.