Rising energy prices: Energy Team’s solutions to limit your costs

Recent months have seen a stream of alarming news stories regarding the Italian and European energy markets, due to a drastic and ongoing increase in energy prices.

In fact, the cost of electricity has risen by 40%, while the cost of gas has gone up 30%, with a PUN (national single energy price) that averaged € 226/MWh in November 2021, growing exponentially compared to June, when it had already hit record levels.

What are energy bills rising so much?

There is uncertainty and volatility on the markets due to a number of factors, primarily linked to the economic recovery following the end of restrictions introduced to handle to health emergency.

Economic recovery means increased demand. This has contributed to reducing available stocks and supplies (e.g. from Russia), driving up wholesale energy prices in Europe, which has in turn led to a significant increase in energy bills, also for businesses.

In this context, the gradual process of decarbonisation started by many European states has, in part, contributed to destabilising the market, but leading political authorities are in agreement when they state that the current situation further demonstrates the need to accelerate investments in renewable energy and the energy transition, thus gradually freeing Europe from risks connected to stocking and sourcing of gas

Gas, in fact, is at the centre of this rise in prices. Growing global demand has highlighted the inadequacy of the production system, which seems unprepared to handle the request for greater flows, generating the risk reduced supplies and an increased possibility of rationing and use of strategic resources allocated to the system to cope with emergency situations. As we have seen, this has led to an unprecedented surge in gas prices.

What is the outlook for companies?

The outlook is less than reassuring. According to estimates from ARERA (Italian Regulatory Authority for Energy, Networks and Environment), there will be further price increases in the coming months and the process of realignment to lower levels will be slow “with prices of natural gas above € 40/MWh for the whole of 2022, before lowering towards € 30/MWh only in 2023”.

What solutions are there for companies to tackle rising prices?

Renewables and measures aimed at accelerating the energy transition will play an essential role in overcoming this crisis. From this perspective, there are many solutions that companies can adopt in the face of rising prices:

GAS INTERRUPTIBILITY

This service enables companies with high consumption of natural gas to participate, through a consortium, in the mechanism managed by Snam — the largest distributor of natural gas in Italy — which sees the involvement of demand units for correct balancing of the national gas network, in return for a fixed annual fee and a variable fee each time consumption is reduced.

ELECTRICAL INTERRUPTIBILITY

This service enables energy-intensive companies to participate in the mechanism managed by Terna aimed at involving demand units connected in medium and high-voltage for correct balancing of the national electricity grid, in return for a fixed annual fee and a variable fee for each disconnection request.

ENERGY EFFICIENCY

Energy-efficiency services enable companies to implement measures aimed at more informed use of resources available and rationalised use of energy, in order to achieve energy savings and consequently save money.

PHOTOVOLTAIC PLANTS

Installation of photovoltaic plants for self-consumption ould led to significant monetary savings while achieving the Company’s sustainability goals and share the details with the stakeholders.

LOWER ENERGY COSTS!

Whether you are a large energy-intensive company or an SME and whatever your needs, expertise and budget, an expert partner can lower your energy costs: Energy Team provides your company with comprehensive support, rooted in over 25 years of experience and a team of professionals and consultants capable of identifying the most appropriate solutions for your specific needs, focused on saving energy and sustainability. Enter your details in the form below or:

Call us +39 02 48 40 50 33

Email us at sales@energyteam.it