Navigating the complex world of energy strategies
In today's dynamic environment, relying solely on a single energy source has become increasingly risky. Energy diversification emerges as a cost-effective method for optimizing fuel utilization. Gasum stands ready to assist its customers in crafting a secure energy portfolio within an ever-fluctuating market.
The global energy market has become notably volatile due to ongoing crises, the shift towards greener energy, and geopolitical uncertainties. For instance, electricity prices can fluctuate significantly within a matter of hours.
Therefore, energy market participants encounter multifaceted risks, encompassing pricing, availability, origin, and geopolitical factors across various energy commodities. Additionally, both end-users and regulatory bodies demand substantial reductions in greenhouse gas emissions.
From a risk management perspective, employing two different energy sources for the same process may prove invaluable. For instance, heat production can utilize both gas and electricity. This flexibility allows choice of the more economical, available, or environmentally desirable option, enhancing resilience in the face of equipment failures.
“Harnessing the benefits of flexibility requires the implementation of a systematic approach to determine when and how to utilize each energy source. Achieving optimal performance is not always straightforward; it necessitates careful planning,” says Atte Pekkala, Gasum’s Solution Lead, Industry Solutions.
Energy switching can help optimizing fuel use
Gasum facilitates fuel optimization for its customers through various means. This includes identifying and capitalizing on price fluctuations in the electricity and gas market. Gasum assists in portfolio management decisions, such as hedging electricity or gas for the upcoming winter seasons.
In day-to-day operations, Gasum supports the adjustment of production plans based on market dynamics. Even when customers have hedged gas, Gasum helps them make informed choices if electricity becomes the more cost-effective option. Furthermore, Gasum offers assistance in trading within the gas and electricity market, supplying real-time decision signals and customizable service options.
“Diversifying the fuel portfolio is a common strategy, which may involve electric boilers, electric batteries, heat pumps, and gas boilers. We often see that customers begin exploring electricity as an alternative when gas prices surge. In such cases, it's advisable to retain the existing solution while introducing an alternative to enhance flexibility,” Atte Pekkala advises.
Flexibility in energy portfolio is part of the green transition
Flexibility within the energy portfolio aligns with Gasum's strategy to support customers in their transition toward a carbon-neutral future. This flexibility proves pivotal in adapting to the challenges posed by the green energy transition.
For instance, the surge in wind power during the green transition is notable, yet wind energy is not continuous and is dependent on weather conditions. Since efficient electricity storage remains a challenge, flexible electricity production supports wind power and broader sustainability objectives.
“Flexible energy utilization yields a significant positive impact on the overall system. Cleaner energy is a shared objective among all stakeholders. Consequently, the complex and unpredictable optimization of electricity calls for new systems and capabilities. Gasum stands as the partner capable of addressing this challenge in collaboration with our customers,” Atte Pekkala concludes.