Demand Supply Optimization
In many territories, electricity supply pricing is composed of multiple components; generation, capacity, ancillaries, line losses, and supplier margin. Your facility’s kWh consumption and kW demand profile (as well as capacity tag) affects the pricing of each of these components, and ultimately your all-in $/kWh. In some territories, such as New York City, your kW demand related price component (capacity) can be as high as 50% of your total supply cost. Through efficiency projects and retrofits, capital upgrades, and active peak load management, you can effectively reduce your peak energy demand and capacity tag, thus driving down your supply contract pricing. In order to realize the benefits from these activities, your electricity procurement strategy needs to align with overall facility operations, and your energy rate consultant needs to understand how to structure contracts for demand supply optimization. Proper structuring and timing of electricity supply contracts can result in hundreds of thousands of dollars in additional supply side savings and / or cost avoidance.
EnergyWatch understands the interactive effects of demand management and supply cost management. Too many companies manage in silos, with one hand not talking to the other, effectively negating the potential benefits of the efficiency projects and capital upgrades. Through our integrated approach to energy demand management, EnergyWatch ensures supply contract decisions are optimized for future operations of the facility.