The EnerConnex team is constantly monitoring energy market conditions to advise our customer base accordingly. We also consider the evolving world of renewables and how they play a key part in helping your business meet its corporate sustainability goals. Below is the latest snapshot of how we are advising customers given current market conditions, what’s driving prices up/down, and how we are helping our customers with renewables.
- How are we advising customers given current market conditions?
Energy markets – both electric and natural gas, have experienced a considerable drop from 2022’s highs. Supply/demand fundamentals and weather have been the biggest drivers contributing to these price decreases. Additionally, EIA’s most recent forecast of natural gas prices through 2025 show prices around current levels but with more upside risk than downside opportunity. See chart below.
For this reason, we are advising those with near term supply contract expirations to look now at their next term contract.
- What key indicators are driving prices up/down?
Supply/demand fundamentals, Weather and Geo-political events are big drivers to near term energy prices. Supply is more closely aligned with current demand, weather has been relatively mild and while geo-political events are ongoing, energy prices have normalized near their longer-term averages and significantly lower than most of 2022.
- How are we helping customers as renewable energy appetites continue to accelerate?
We like to base our customer conversations around risk appetite, available capital for investment, term of commitment and what we call the renewable energy spectrum – from RECs all the way to behind the meter renewable energy solutions. With more information around these topics, we can tailor the best renewable solution for the customer.
For more insight and information, you can access our weekly Market Intel Reports for the latest happenings in energy markets here. Also, feel free to contact us at info@enerconnex.com to schedule time to review one of our Market Intel Reports in more depth with one of our team members.