18.05.2022

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

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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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21.06.2024

Tender for the purchase of energy in the exchange model, i.e. a way to optimize the costs of a public institution

Energy purchase based on the exchange model allows you to contract all or part of the volume at current market prices. The purchase is based on tranches indexed to prices from the Polish Power Exchange (TGE). Thanks to this solution, public institutions gained access to the wholesale energy market through an intermediary (seller) and can independently decide when and in what quantity they will purchase all or part of the volume they will consume in the future. This is a good solution - by spreading the purchase over a longer period, public institutions increase the likelihood of obtaining favorable prices.

Exchange purchase, available to customers who consume at least several hundred MWh of energy per year, increases the chance of generating savings compared to purchase at a fixed price, as it reduces the risks for energy sellers themselves. However, it should be remembered that this form of purchase is associated with the risk of an increase in stock exchange prices, which in the event of insufficient control of the purchasing process may result in higher final energy prices.

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03.06.2024

Webinar – Discover savings: strategies to reduce energy and gas costs

Are you an entrepreneur? Are you interested in securing energy and gas prices for 2025 and subsequent years? Are you watching the situation on global markets with concern and wondering how the possible development of the geopolitical crisis may affect media prices?

Enfree Webinar - Discover Savings: Strategies to Reduce Energy and Gas Costs.

June, 6th 2024 | 11:00 - 12:00


Register today! Enfree Webinar Registration

Arkadiusz Somnicki and Adam Wlizło will present proven strategies and innovative solutions that generate real savings.

The agenda includes,among others:
💡Preparation for 2025 - contract, termination, change of seller.
💡Stock market purchase model – how is it better than a fixed price?
💡The future of energy prices: the role of photovoltaics in shaping the market.
💡Q&A session.

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23.02.2024

Energy of the future – from energy storage to dynamic tariffs

The dynamic development of renewable energy sources (RES) opens new prospects for enterprises. In the face of challenges related to connecting new renewable energy sources to the power grid, storage technologies are becoming an increasingly important element. Hybrid installations combining renewable energy sources with energy storage are developing at a fast pace. This solution not only increases independence from traditional sources and the national system, but also increases the security of energy systems. Thanks to this, the electricity produced from renewable energy installations at the peak of production (e.g. a photovoltaic installation during sunlight hours) can be partially used for current needs, and the rest of the produced energy will go to storage. This will make the owners of such sets more energy independent, regardless of the consumption profile, provided that a sufficiently large generation and storage capacity is built. An additional environmental advantage is the ability to obtain 100% green energy for your company.

Preparing customers' electricity systems to use dynamic tariffs will be an interesting topic in 2024. Although the launch of the Central Energy Market Information System (CSIRE) will not take place in mid-2024, as originally planned, this moment is getting closer. The introduction of a fully functional system will mean that consumers who consume even little energy will have the opportunity to use dynamic tariffs, in which the price will be different for each 15-minute delivery period. The introduction of purchasing automation supported by artificial intelligence to this model will allow for better management of energy flows, prediction of failures and optimization of deliveries. Artificial intelligence will begin to play an increasingly important role in the energy sector, from process automation to advanced analyses. This is not only efficiency, but also the key to understanding market trends. As energy networks digitize, new risks will emerge: cyberattacks. Investments in advanced security systems will become key to protecting critical infrastructure. Reliability of energy supplies will be a priority, and a key aspect in the near future will be the modernization of the network to strengthen its resistance to failures and the diversification of energy sources.

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