18.05.2022

Purchase of energy from renewable sources. How to protect the company against increases?

Tagi

Autor

Adam Wlizło

Member of the Board

Stock exchange prices of energy in Poland for 2023 exceeded the level of PLN 1,150 / MWh. The price forecasts also leave no room for doubt - analysts agree that it will be even more expensive. How to protect our companies from increases? We look for answers in renewable energy sources.

The purchase of energy from renewable sources has gained in importance over the last year, because the so far leading ecological emphasis has been supported by a very strong partner - the financial aspect. Over the last year, the purchase of "green" energy (often based on long-term cPPA contracts) has become strongly competitive with the purchase of energy from the power exchange, the prices of which have experienced a threefold increase y / y (one of the main culprits of the current increases is the situation on the coal market). The energy prices offered to companies in the last days for 2023 exceeded the level of PLN 1,250-1400 / MWh (rates vary depending on the characteristics of the recipients; let us remind you that in 2021 entrepreneurs were buying energy on average at PLN 300-400 / MWh).

The market response to the energy price rally came quickly. Renewable energy producers have noticed that they can realize higher profits on the sale of energy to end customers, while meeting the expectations of customers looking for cheaper energy. Many known entities are currently updating their business models, changing the current order in the field of green energy trading. For example, owners of RES generation assets enrich their enterprises with trading companies operating on the market that will sell green energy directly to end users.

Solutions enabling companies to reduce the amount of energy purchased at high prices have also gained popularity. And again, companies providing renewable energy solutions, including those enabling entrepreneurs to invest in their own energy sources, come to the rescue. We wrote more about it in the article: In search of cheap electricity – green strategies of Polish entrepreneurs

The price situation on the energy market is extremely difficult for many entities. The only consolation may be the fact that the increase in the competitiveness of renewable energy prices has become a strong motivator of market changes, and by the way or above all - it is a financial stimulus to accelerate investments with a positive impact on the environment.

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