Electricity Price Variations: How to Protect Your Business?
Discover how fluctuations in electricity prices impact businesses and how Enel offers protection and stability.
Despite the country's vast potential in renewable energies, electricity rates have experienced fluctuations that affect businesses and the general population.
Even with an installed renewable energy capacity exceeding 30 GWh, these variations are due to increases in fuel prices. In this context, Mexican companies face the challenge of ensuring a constant and affordable electricity supply to maintain their operations.
Qualified users—large electricity consumers such as industries—have the option to choose their energy provider. This choice allows them to choose cleaner and more sustainable sources and protect themselves against electricity price increases.
Factors Influencing Price Variations
The cost of electricity is fundamental in the expense structure of many companies, and its variability can significantly impact profitability and operations. In Mexico, electricity rates have experienced fluctuations in recent years due to various factors:
Increase in fuel prices: Electricity generation in Mexico largely depends on fossil fuels, especially natural gas. Any variation in the international prices of these fuels can directly affect electricity rates.
Changes in energy policies and regulations: Government decisions on energy matters, as well as sector regulations, can influence production costs and, therefore, final consumer rates.
Demand and supply in the electric market: The relationship between electricity demand and available generation capacity also plays a crucial role. Periods of high demand, especially in hot seasons, can put pressure on rates.
External factors: Unforeseen events, such as natural disasters or geopolitical situations, can affect the availability of fuels or generation capacity, impacting rates.
Companies in Mexico have sought strategies to mitigate these variations, and one emerging solution is the adoption of renewable energies. These energy sources are not only more sustainable but also offer greater long-term cost stability.
Protection Strategies Against Price Variations
Other strategies that companies are using to ensure fair and predictable rates include:
Power Purchase Agreements (PPAs):
PPAs are long-term contracts between an energy generator and a consumer in which a fixed price or a price structure for electricity is established for the duration of the agreement. This strategy allows for securing stable and predictable rates, protecting against market fluctuations.
Diversification of energy sources:
By diversifying energy sources, companies can reduce their dependence on a single resource and minimize the impact of price variations on that specific source. For example, they could combine solar energy with wind or geothermal.
Distributed generation:
Distributed generation allows companies to generate electricity, reducing their dependence on the electric grid and, therefore, on rate variations. Moreover, generating energy closer to the point of consumption reduces transmission losses.
Energy efficiency and consumption management:
Implementing energy efficiency practices and technologies can help companies reduce their electrical expenses and exposure to price variations. Additionally, active consumption management, such as monitoring systems, can allow companies to adapt to more favorable rates.
Smart Grids:
These networks allow for more efficient and flexible electricity management, adapting to real-time usage and generation needs. This can help companies take advantage of lower rates and reduce consumption during peak demand.
At Enel, we understand the importance of a stable and predictable electricity supply for business success. Therefore, we offer tailor-made solutions that adapt to each customer's specific needs, from distributed generation to the implementation of smart grids.
By partnering with Enel, companies ensure a reliable electricity supply while positioning themselves at the forefront of energy innovation, providing a more sustainable and economically viable future.
If your company seeks to protect itself from variations in electricity prices and wishes to adopt innovative energy solutions, wait no longer! At Enel, we are ready to guide you towards a more sustainable energy future. Contact us today and discover how we can transform how your business consumes and manages energy together.
Take a step towards a brighter energy future with Enel!
Related posts