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A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

by | Dec 7, 2023 | Uncategorized

As we bid farewell to 2023, EnerConnex reflects on energy price volatility and 2024 industry megatrends. Chart 1 below illustrates the volatility in natural gas pricing at the Henry Hub, a key trading point for this commodity.  Note the 100+% volatility from December 2022 to December 2023.

Given natural gas is a key input fuel for electricity generation, electricity prices also experienced large fluctuations in price throughout the year.

Energy markets also witnessed a continued increase in renewable energy adoption with renewable energy accounting for 20% of all U.S. electricity generation. Chart 2 below, breaks down the approximate percent of renewable energy by U.S. electricity production by type.   

Simultaneously, natural gas commodity markets are experiencing what could be transformative changes with the use of green hydrogen used for blending with natural gas as a pathway toward decarbonization and growth in renewable natural gas (RNG). According to Wood Mackenzie, the North American RNG market could expand tenfold by 2050 to reach 4bcfd.  RNG grew by 20% in 2022 and the number of RNG projects have doubled in the last five years with states such as Texas, California and Pennsylvania leading the way. 

Looking ahead to 2024, EnerConnex foresees a continuing path toward decarbonization with two megatrends that will continue to impact the energy landscape. First, the continued advancement of energy storage technologies that will play a pivotal role in enhancing grid stability and managing the intermittent nature of renewable energy sources. Second, the rise of decentralized energy systems and microgrids that will empower consumers to take control of their energy consumption, contributing to a more distributed and flexible energy grid.

In summary, 2023 was marked with volatile electricity and natural gas commodity markets due to weather, natural gas storage, and the continued shift to a more renewable energy resource mix.  Volatility will likely continue as the industry shifts towards more sustainable energy options while wrestling with grid reliability and resilience.

A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

Unplugging the Profits: Why Your Business Needs an Energy Buying Strategy

by | Nov 13, 2023 | Uncategorized

Energy costs consistently rank among the top operating expenses for businesses across most industries. Whether you’re running a small startup or a multinational corporation, the impact of energy prices on your bottom line is undeniable. It can be difficult to understand energy pricing for your business because rates are usually determined by usage, load factors, demand, weather, and overall market conditions.  That’s where having a robust energy buying strategy becomes more than a choice—it’s a financial necessity.

In addition, the volatility of energy markets means that a wait and see approach towards your energy procurement can result in potential unforeseen financial shocks. Price spikes, supply disruptions, and market fluctuations can catch unprepared businesses off guard, leading to diminished profitability. To avoid these pitfalls, a well-thought-out energy buying strategy is crucial. Let’s compare the three main types of energy purchasing strategies and dive into each’s offerings.

  • Fixed Price Solutions: You pay one fixed price per unit of energy that you use over a contract term. Meaning, you make one purchase decision for a set amount of months. This option gives you energy budget certainty, strong cost predictability, helps you mitigate risk, and ensures there will be no rate spikes. Consequently, you could potentially miss out on savings if markets were to fall and you’re locked in at your fixed rate for the contract term.
  • Index Price Solutions: Your rate fluctuates based on real-time market prices and your costs follow by moving up and down daily with market rates. This allows you to capture savings when markets go down and prices adjust automatically based on market swings. On the flip side, this could cause your budget to be unpredictable due to month to month price volatility  and potential seasonal price spikes.
  • Layered Solutions: This solution combines both fixed and index pricing strategies. A percentage or portion of usage is fixed, and the remainder follows variable market pricing. The fixed portion provides budget certainty and helps avoid price spikes in the market. This blend balances cost stability with market price awareness to enhance your savings.
energy buying strategy

Working with an Energy Professional

Energy industry experience, market knowledge, an efficient platform for price discovery, supplier liquidity and market strength, all contribute to making an informed decision about your energy buying strategy. Before diving into the market, businesses must understand their energy consumption patterns. Analyzing when and how energy is used and helping to identify potential areas for efficiency improvements will be beneficial to your energy supply procurement decision. The team at EnerConnex enables you to create a customized energy buying strategy based on your consumption, appetite for risk, and other unique needs and goals.

A well-executed energy buying strategy can lead to significant cost savings, improved budget predictability, and a competitive edge in a volatile market. In a world where energy is both a resource and a commodity, businesses that master the art of strategic energy procurement are better equipped to weather economic storms and emerge as industry leaders. So, as you navigate the complex landscape of your business’s financials, don’t overlook the powerhouse that is your energy bill. Unplug the unnecessary expenses and watch your profits soar.

Funding Your Energy Future: Solutions for cash flow positivity and CapEx avoidance.

by | Nov 1, 2023 | Uncategorized

EnerConnex is a leading energy advisory firm focused on energy procurement, renewables, and sustainability. With access to one of the largest supplier networks, a proprietary pricing platform, and extensive industry experience, we tailor energy strategies based on our client’s specific needs and sustainability goals.

EnerConnex is excited to announce our partnership with ECOSAVE to drive sustainable energy solutions for mid-to-large commercial and industrial end users. Ecosave has more than 20 years of engineering expertise reducing energy costs and carbon emissions through tailored efficiency, technology, and renewable solutions.

Energy infrastructure projects are often assumed to be cost prohibitive. Our flagship funding model- the Ecosave Service Agreement- provides clients with the capital to fully fund building upgrades and reduce operating expenses from day one. As an energy-as-a-service provider, Ecosave provides an off-balance sheet funding model so clients can innovate building infrastructure without capital or debt.

How You Benefit:

Wide-ranging solutions are customized, including:

TODAY:TOMORROW:
·         Building upgrades with $0 outlay, debt or delay-funding is immediately available.·         As energy prices increase, your savings grow.
·         Guaranteed operational savings spelled out and contractually locked in.·         Ecosave optimizes equipment for the life of the contract.
·         Cash flow positive from day one- your savings exceed our fees.·         Ecosave and EnerConnex continues to serve as a single point of contact for all your energy needs.
·         Off balance sheet for capital expenditure avoidance.·         Measurable reduction of carbon emissions and operational expenditure. 
  • Energy efficiency optimization of existing infrastructure, from lighting to complex mechanical retrofits, upgrades, energy recovery, and replacements and optimization of process and production.
  • Renewable and onsite generation, including combined heat and power, geothermal, solar, and battery storage.
  • AI-driven data overlay to identify operational inefficiencies and provide predictive optimization and ongoing retro-commissioning.
  • Robust plant automation systems to intelligently enhance performance and efficiency, without compromising comfort, process, production, or security.

Partner with EnerConnex and ECOSAVE and start saving money and energy, guaranteed, with $0 upfront investment. Contact us today to get started!

A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

EnerConnex and ECOSAVE Join Forces to Drive Sustainable Energy Solutions

by | Oct 13, 2023 | Uncategorized

FOR IMMEDIATE RELEASE

October 13, 2023

Headline:  EnerConnex and ECOSAVE Join Forces to Drive Sustainable Energy Solutions

Folsom, NJ— EnerConnex is a leading energy advisory firm focused on energy procurement, renewables and sustainability. With access to one of the largest supplier networks, a proprietary pricing platform, and extensive industry experience, we tailor energy strategies based on our client’s specific needs and sustainability goals. EnerConnex is a wholly owned subsidiary of SJI– a $2.6B energy infrastructure company. 

Ecosave has more than 20 years of engineering expertise reducing energy costs and carbon emissions through tailored efficiency, technology and renewable solutions. As an energy-as-a-service provider, Ecosave provides an off-balance sheet funding model so clients can innovate building infrastructure without capital or debt.

By merging their expertise, EnerConnex and Ecosave Inc will offer comprehensive and cutting-edge energy solutions to clients worldwide. Their partnership empowers widespread adoption of more sustainable practices and drives reduction in building net operating expense.

“We are excited to partner with Ecosave Inc to amplify our efforts in creating a greener, more efficient energy landscape,” said Jim Hooven, Sales Manager of EnerConnex. “Together, we will provide innovative, customized solutions that enable businesses to meet their sustainability goals while enhancing their bottom line.”

“We are pleased to leverage EnerConnex’s best-in-class services to bring new solutions to existing and future clients,” said Jay Handmer, Director of Utility Management Services at Ecosave. “We look forward to helping our customers take advantage of a changing energy landscape.”

The joint venture will focus on:

Energy Efficiency: Leveraging advanced technologies and data analytics to optimize energy consumption and reduce waste.

Renewable Energy Integration: Developing strategies to incorporate renewable energy sources into businesses’ energy portfolios.

Carbon Footprint Reduction: Implementing sustainable practices to help clients reduce their carbon emissions and environmental impact.

Energy Supply Procurement: Ecosave customers will now have access to the leading Energy Procurement Platform provided by EnerConnex.

Building Upgrade Programs: EnerConnex and Ecosave have developed a Building Upgrade Program that offers a simple, repeatable, and scalable approach to upgrading building portfolios and fulfilling sustainability commitments.

EnerConnex and Ecosave are dedicated to driving positive change in the energy industry and contributing to a more sustainable future for all.

For more information about this partnership and the services offered by EnerConnex LLC and Ecosave Inc, please visit [www.enerconnex.com or www.ecosaveinc.com].

Erin McAfee – emcafee@enerconnex.com ,  Head of Marketing, EnerConnex

Melissa Stonberg— mstonberg@ecosaveinc.com , Chief Marketing Officer, Ecosave

A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

A Surge in Electric Vehicles and Their Road to Growth

by | Oct 2, 2023 | Uncategorized

The need for electric vehicle charging infrastructure is more important now than ever before. The percentage of electric cars on the road in the U.S. continues to grow year-over-year and shows no signs of slowing down.  There’s been a large uptick in the number of electric fleet vehicles within the past year as companies continue to look to improve sustainability efforts by reducing their carbon footprint. It’s grown immensely beyond just electric cars; there are electric forklifts, mowers, tractors, buses, and more available.

A Washington, D.C. school district recently announced that they are adding 25 electric buses to its transportation fleet in the 2024-2025 academic year. This school district is not the first, and certainly not the last, to make the switch to electric buses. The US Department of Transportation is providing $1.7 billion to 46 states and territories to fund the acquisition of 1,700 buses over the next few years.

Two cities in Oregon are set to receive more than $1 million from The Carbon Reduction Program to purchase small electric street sweepers to replace the current gasoline powered ones. More and more electric powered options are now available for use and people and businesses are making the switch. Consequently, to meet the needed charging demands of a lot of vehicles now operating on electricity, we need to make sure that there is enough charging infrastructure in place and readily available. The U.S. Department of Energy has even launched an educational campaign that highlights the benefits of installing electric vehicle charging ports in employee parking areas at workplaces.

With that said, now is the time to install EV charging stations at your facility with different configurations available for easy installation for users. Drivers in need of these charging stations present a new opportunity for many businesses to increase their value by re-imagining their parking lot. EV charging stations installed in a typical parking lot can be used to attract desirable clientele, tenants, employees, and more. Installing these EV charging stations also boost business’ standpoint on caring about the environment and their focus on sustainability. EnerConnex can help you boost your property value and get plugged in to new customers with EV charging. We can assist with the evaluation, design, and installation of your EV charging stations while also helping you leverage any available rebate and incentives. Contact us for details! info@enerconnex.com