Energy Management Strategy
Reducing energy costs and insulating your business from price volatility
Energy prices and supply are poised to become much less predictable than in the past. Leading companies recognize this trend and are beginning to manage energy as a strategic asset.
Many older, less efficient power plants are scheduled for shut down because it isn’t economically feasible to bring them into compliance with expected regulations. And although new plants and infrastructure are being built or planned to ensure a continued supply of energy, businesses can expect to see price increases to help pay for those major capital investments.
At the same time, shifting supply and demand patterns are likely to create an uneven impact across the country. For example, the move toward alternative energy sources may create a bias for new baseload power investments that rely more heavily on natural gas. Factor in the unpredictability of commodity prices and government regulation, and it’s clear that uncertainty may be the only thing that’s certain about the cost of energy.