Energy Efficiency as a Pillar of Power Grid Reliability

by Andrew Mahoney | Sep 6, 2023 | Uncategorized

In today’s rapidly changing world, our power grids are truly the backbone of modern society. It’s the invisible force that keeps our lights on, our devices charged, and our lives running smoothly. However, as our energy demands continue to grow and environmental concerns rise to the forefront, ensuring the reliability of the power grid has become more critical than ever. Extreme weather events, cyberattacks, and an aging grid infrastructure pose significant challenges to power grid reliability. Blackouts and disruptions can have far-reaching consequences, affecting everything from healthcare facilities and data centers to everyday life at home.

U.S. grid operators are raising alarms that the power grid is becoming less reliable and potentially more prone to blackouts as traditional fossil-fuel and nuclear plants are shutting down at a rapid pace and are replaced by cleaner but less consistent forms of generation. We’ve seen blackouts in certain areas in the past due to a number of factors, and work is being done to avoid that in the future. This is where energy efficiency can step into the spotlight and help.

We’ve seen and will continue to see utilities across the globe increase distribution and regulatory changes to generate revenue to make updates to the grid. Since experiencing a blackout in 2003, New Jersey utility, PSE&G has spent billions of dollars to further enhance and protect the reliability of its systems with the aim of mitigating future outages. In fact, the company’s planned capital expenditures this year are the largest in the utility’s history—over $3.5 billion.

Energy efficiency serves as a cornerstone for addressing power grid reliability issues. Here’s why it’s more important than ever:

• Reducing Strain: Energy-efficient technologies and practices reduce the overall demand on the grid. When consumers use energy more efficiently, there’s less stress on the system during peak times, reducing the risk of overloads and blackouts.
• Enhancing Resilience: Energy-efficient buildings and infrastructure are more resilient in the face of extreme weather events. They can better withstand power outages and recover more quickly when disruptions occur.
• Lowering Operating Costs: Energy efficiency measures not only benefit consumers but also utilities and grid operators. Reduced energy consumption translates into lower operating costs, which can be reinvested into improving grid infrastructure.
• Mitigating Environmental Impact: Less energy consumption means reduced greenhouse gas emissions and a smaller environmental footprint. By promoting energy efficiency, we contribute to a more sustainable future.
• Facilitating Integration of Renewables: As renewable energy sources like wind and solar become more prominent, energy efficiency measures help stabilize the grid by ensuring a consistent and reliable energy supply.

Working with an experienced energy partner like EnerConnex can help you take steps towards a more energy-efficient future for your business as well as our overall planet and grid. Achieving energy efficiency on a large scale requires a concerted effort from individuals, businesses, and governments. Here are some steps you can consider:

1. Upgrading buildings: Retrofitting existing buildings with energy-efficient technologies, such as LED lighting, smart thermostats, replacing aging HVAC equipment and updating building envelop and insulation, can significantly reduce energy consumption.
2. Incorporating solar or other renewables to your overall energy strategy: Meet with an advisor at EnerConnex to evaluate if solar or another type of renewable is a good fit for your facility. We will ask qualifying questions and go over available rebates in incentive based off of your location and energy goals.
3. Incorporating energy management and monitoring software: Knowing how and when your facility uses energy allows for optimal planning and management. By having accurate and validated data will help identify inefficiencies in order to create a road map to upgrade facilities and help change wasteful human behavior.

If you are interested in learning more about grid reliability and the pivotal role that energy efficiency can play in it, reach out to a representative at EnerConnex today! info@enerconnex.com

Operating in Multiple Locations? No Problem!

by Andrew Mahoney | Jul 26, 2021 | Uncategorized

One of the challenges that companies with multiple locations face, is finding an energy consultant to partner with that has the necessary licenses and expertise in all of the states in which they operate in. Not all energy consultants are able to conduct electricity, Green Power, and natural gas procurements across all deregulated states.

Many energy consulting companies focus on a target area geographically, as it can be difficult for them to maintain licenses across all deregulated states. In addition to needing the proper licenses, they must also know the ins-and-outs of different markets across all utilities and Regional Transmission Organizations.

With one of the largest supplier networks in the market, SJI Energy Advisors generates intense competition across all deregulated utilities, utilizing a technology enabled platform to drive supplier margins to a bare minimum. In addition to leveraging technology, we offer decades of experience and market expertise in all deregulated utilities. This allows us to assist our customers with all of their business operations pertaining to energy needs.

To see all of the utilities that we operate in, please click here.

Green Power Procurement Made Easy

by Andrew Mahoney | Jun 11, 2021 | Uncategorized

Challenge:

EnerConnex has been procuring electricity and natural gas for industrial and commercial end users since the on-set of deregulation in the Northeast. While our footprint continues to expand, there has been a growing interest of folding in various percentages of REC’s or Green Power in supply contracts. Many industrial, commercial and institutional end users have varying levels of sustainability requirements so incorporating percentages of Green Power has become very common.

A large commercial consumer occupying multiple floors in a Chicago high-rise reached out to us to see if there was an opportunity for them to save on their operating expenses each month and explore all of their options. They also wanted to learn more about the electricity auction process, how it works and how it could potentially benefit them.

Solution:

After connecting EnerConnex, this large commercial consumer not only discovered that they could get better pricing but could also take advantage of incorporating Green Power in their supply contracts at extremely low premiums.

Using ECX Marketplace platform, multiple scenarios were run. The results were great, yielding 8 unique suppliers placing bids for 0%,10%,50% and 100% Green electricity contracts for 12, 24, 36 and 48-month terms.

Results:

This new client obtained significant savings while off-setting their entire annual and term usage with a 100% Green Power contract. They signed a 48-month contract with an astounding 25% savings. Additionally, they were able to cover their entire annual and term load with 100% Wind Nationally Certified Green E Rec’s for a marginal premium of only $600.00 annually as compared to a non-green contract. If this client was to purchase these same REC’s on the open market, their cost would be close to double with the risk of escalating renewable costs for the duration of the contract.

How can this benefit you?

Our process can be uniquely tailored for commercial and industrial end users of any size with varying locations within any given deregulated utility. Our ability to secure low cost Green Power can be modified to fit any company or organization’s sustainability plans. Having one of the largest supplier networks in the industry allows all of our clients to see side-by-side pricing from every viable supplier. This results in our clients locking in at the lowest possible electricity and natural gas rates. Are you ready to see how we can help you?

Greenhouse Gas Equivalencies Calculator

by Andrew Mahoney | May 11, 2021 | Uncategorized

Did you ever wonder what reducing carbon dioxide (CO2) emissions by 1 million metric tons means in everyday terms? The greenhouse gas equivalencies calculator can help you understand just that, translating abstract measurements into concrete terms you can understand, such as the annual emissions from cars, households, or power plants.

This calculator may be useful in communicating your greenhouse gas reduction strategy, reduction targets, or other initiatives aimed at reducing greenhouse gas emissions.

Click here to calculate your CO2 foot-print: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

Are You Besieged by Energy Calls?

by Andrew Mahoney | Apr 11, 2021 | Uncategorized

In the wake of energy deregulation, the energy consulting industry can appear to be a crowded and chaotic field.  It is estimated that there are more than 2,200 energy consulting firms in just the Mid-Atlantic Region alone, comprising various levels of expertise and a broad range of ethics.

Utility commissions across all deregulated states have taken measures to enforce licensing requirements and punish bad behavior via hefty fines and even the revocation of operating licenses. Even in this better-regulated environment, however, commercial energy users of all sizes continue to be bombarded with energy sales calls.   This may cause you to simply say “NO” to all of them, and that leaves you stuck with your current broker, which may not be the best business decision.

So how do you separate the sheep from the goats?  How can you identify those consultants (brokers) who merit your consideration?

Are They a Legitimate Broker?

The vetting process is actually pretty simple:

Ask for the caller’s name and the company they are calling from, along with their contact information. If they are hesitant and without conviction that is a definite red flag. A lot of suppliers and brokerage firms use call centers, and those who are manning the phones are neither experts nor even an employee of the company.

If they are indeed a licensed broker, ask if they are licensed in your state. In most states all energy brokers, consultants and suppliers must be licensed with the utility commission. You can always check your state’s utility commission website for a list of all licensed companies.

Check their website while you’re on the phone. See if they have testimonials, case studies and other articles and insights. If they don’t have a website, don’t bother.

See if they have a corporate LinkedIn page and a Facebook page. Check the caller’s individual LinkedIn profile to ascertain his level of experience and expertise.

Are They Better than Your Current Broker?

OK, so they are a licensed broker, but will they actually be more effective than your current broker?  Here are four questions you can ask to make this determination:

What is your bidding process?  Do they have a proven reverse auction process that forces suppliers to compete head-to-head for your business?

How many suppliers will compete for my contract?  You never know which supplier will be the low bidder in any given auction, so you must include every viable supplier in the process.,

Will I see every price available in the market? If you don’t see every price for every contract type and term, how do you know you are seeing the lowest possible price?

Is this a good time to buy? Of all the factors that affect energy pricing, none is more important than timing.  For example, current electricity prices are holding at 5-year lows, and the “Futures” pricing curves are highly favorable.  If your broker has not alerted you to this, you are missing a historic buying opportunity. Does the Broker/Consultant have the knowledge and experience to understand the complex factors that drive the market?   Do they use this understanding to minimize your risk and maximize your opportunities?

What is your contracting process? This step – often overlooked – can be critical.  Every Supplier has a different contract, and regulatory issues can create unpleasant surprises.  An experienced Broker or Consultant can help you avoid contracting pitfalls and regulatory landmines.

How do you develop the Request for Pricing (RFP)? Expect your Broker/Consultant to understand your energy strategy and goals fully, and to craft an RFP that explains ALL your requirements to the Suppliers clearly – e.g., multiple term lengths, bandwidth and swing tolerance, green-power; pass-through of Capacity and Transmission charges if strategic, and the terms for buying/selling overage/underage for natural gas.

What ongoing support do you provide? To ensure that you are being billed correctly from both the Supplier and utility, bill audits must be conducted throughout the term of the contract, with your Broker/Consultant taking charge when there is an issue. Also, will they provide budgeting support and ongoing market intelligence. Lastly what additional value do they add to your organization such as energy management and monitoring capabilities, lighting, and other energy reduction expertise.