Energy assets can reduce vulnerability from fossil fuels supply, while Demand Response (DR) and trading can help to reduce cost and generate revenues, according to GridBeyond’s latest report.
The energy crisis that has been building for a year has mostly affected the UK and European countries so far, but its impacts are starting to be felt in the US.
In the UK, wholesale energy prices increased rapidly from the second half of 2021. As a net importer of energy, the UK is exposed to volatility in gas prices. In addition, last year, countries in Asia and Europe used significant amounts of gas stocks during a long winter, which drove up prices, while the reopening of economies following the Covid-19 pandemic also sparked higher demand. More recently, the conflict in Ukraine has led to the cost of gas soaring even further, which has in turn pushed bills higher.
While the US may import only a small amount of Russian oil and gas it is tied to Russian energy via its participation in highly globalized supply chains.
In 2021, the US imported about 626,000 barrels per day of oil (7% of imports) from Russia. To put this amount into context, the US produces 75% of its crude oil supply and 90% of its natural gas supply domestically. This gas is used to generate 37% of US electricity demand. Natural gas’ share of US generation is expected to remain largely constant in spite of higher prices this year, the US Energy Information Administration (EIA) has said.
The average price of electricity for residential consumers could reach $0.1524/kWh in 2023, the EIA forecast on 7 September in its latest Short Term Energy Outlook. That would represent about a 3.3% increase from this year. Businesses across the country will see similar increases, but the increase in energy prices is not uniform across the country. Wholesale electricity prices in the Southwest are expected to average 25% higher than in 2021. Meanwhile the highest forecast wholesale prices are at more than $100/MWh in ISO New England (up 96% from 2021) and New York ISO (up 124% from 2021).
Renewable energies can reduce US vulnerability to fossil fuel supply and help businesses to navigate the energy crisis. But an increasingly renewables-based power system means a growing need for more flexibility in the system to manage peaks and troughs caused by intermittent generation.
Offshore windmills; image by Nicholas Doherty, via Unsplash.com.This brings about opportunities for businesses to not only limit the risk of energy price spikes, but to also gain revenues by supporting grid operators through DR programs and energy trading.
Wayne Muncaster, SVP for North America said:
“The use of DR and trading generate savings and revenues while helping businesses to manage this current crisis and react quickly to market volatility.
“In these times where the cost of energy is rising, many large energy consumers like manufacturers, cold storage industries, but also hospitals and large retailers’ companies could look at DR to mitigate against price peaks, while supporting the transition towards net zero”.
To download a copy of the report visit: https://gridbeyond.com/lp/energy-crisis/
The transition to a Net Zero economy is driving significant change in the energy sector. From the rise of renewables generation to the ever-increasing need for grid balancing services. The result is a significant requirement for scalable and real-time solutions to manage the energy system of tomorrow.
At GridBeyond our vision is to build a shared energy economy that delivers sustainability, resilience, affordability and adaptability through collaboration and innovation. By bridging the gap between distributed energy resources and electricity markets, our technology means every connected asset, whether its utility-scale renewables generation, battery storage or industrial load, can be utilised to help balance the grid. The benefit?
By intelligently dispatching flexibility into the right market, at the right time, asset owners and energy consumers unlock new revenues & savings, resilience, manage price volatility, while supporting the transition to a Net Zero future.
Using artificial intelligence and data science, GridBeyond’s technology balances and orchestrates energy generation, storage and industrial load in a coordinated system. GridBeyond’s intelligent energy optimiser, lies at the core of our services. By connecting load, generation, and storage assets with the opportunities of the energy markets our technology bridges the gap between distributed energy resources and the requirements of the power grid.
Combining solvers, market access, and automatic trading in one place, including balancing services, capacity markets and the participation in the wholesale traded markets, our technology empowers C&I businesses, EV fleet operators, generators, and energy storage operators to maximise revenues and savings.
GridBeyond was founded in 2010 and is home to the world’s first hybrid battery and demand network. Now a global player in the energy transition, GridBeyond provides a powerful combination of technological excellence, consultative approach and unrivalled expertise that enables its partners and clients have future-proof access to energy services, while supporting the wider electricity grid integrate more volatile renewables and make the leap to a greener future. All without impacting operations.
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