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Climate change is driven by increasing greenhouse gas (GHG) emissions, like carbon dioxide, methane, and nitrous oxide, which trap heat...

The post Scope 1, 2 and 3 Emissions: What to Address First in Your GHG Reduction Journey appeared first on Constellation's Energy4Business Blog.

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Climate change is driven by increasing greenhouse gas (GHG) emissions, like carbon dioxide, methane, and nitrous oxide, which trap heat in the atmosphere. These gases are released into the atmosphere, often from business operations, including, but not limited to, power usage for facilities, transportation of goods, and industrial manufacturing processes. Climate change is one of the most urgent challenges facing businesses today. As public awareness grows around this issue, major corporations are looking to reduce their carbon footprint and lessen their emissions impacts.

More businesses are also taking inventory of their greenhouse gas (GHG) emissions sources, either direct or indirect, to find areas of improvement in order to comply with disclosure rules, set targets, and better align mitigation and adaptation strategies.

Companies are also implementing their own aggressive business-wide sustainability goals to become leaders in their respective industries and to access the growing list of economic, environmental and social benefits of doing so. As another critical component of goal setting, many businesses are creating target dates (e.g., 50% or 100% emissions-free by year 2030 or 2040) to maintain accountability in reaching their emission reduction goals.

The first key step is understanding the different categories of emissions associated with business operations. Before your business implements targeted strategies for reduction, let’s dive into the emissions, categorized into three scopes:

  • Scope 1 emissions: Originate from sources owned or controlled by the company.
  • Scope 2 emissions: Arise from fossil fuel consumption for power, such as power plants providing purchased electricity.
  • Scope 3 emissions: Come from indirect sources, such as company travel and supply chain management.

These emissions are defined by the GHG Protocol, which is widely recognized and used as the international standard for measuring and managing greenhouse gas emissions.

Starting with Scope 1 Emissions

Scope 1 emissions comprise of sources from a business’s owned or controlled assets, and upgrades to these areas are typically the most feasible to measure, control and reduce. These emissions can be separated into four primary categories:

Stationary Combustion: Emissions resulting from the on-site burning of fuels to power equipment like boilers, generators furnaces and more. Examples of these fuels are natural gas, propane, gasoline, diesel, biomass and wood.

Mobile Combustion: Emissions arising from fuel burned by vehicles that are owned or leased by a company, including transportation fleets.

Fugitive Emissions: Emissions from unintentional leaks and releases of greenhouse gases such as refrigeration, air conditioning and fire suppression systems that may leak chemicals.

Process Emissions: Emissions generated directly from industrial activities and chemical reactions in heavy industry and manufacturing plants.

Measuring and reducing scope 1 emissions is foundational to any corporate carbon management strategy. Businesses can implement various energy solutions, such as enhancing energy efficiency, incorporating electric vehicles (EVs) into their fleet, or incorporating renewable natural gas (RNG) into your energy supply, to curtail these emissions effectively.

Scope 2 Emissions

Scope 2 emissions represent indirect greenhouse gas emissions associated with purchased electricity, steam, heating and cooling used to power company operations. These emissions, although physically occurring at the facility where they are generated, are included in an organization’s GHG inventory because they stem from the organization’s energy use, as highlighted by the EPA.1

When accounting for scope 2 emissions from purchased electricity, businesses have two primary approaches:

Location-Based Method: Assesses average emission factors for your regional utility grids supplying your company’s facilities. It provides insights into the general carbon intensity of electricity where your company operates.

Market-Based Method: Reflects emissions from electricity that companies have purposefully chosen. It inventories emissions via contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attributes.

Scope 2 emissions may also include purchased heating and cooling that companies purchase from their utility or energy suppliers.

Reducing scope 2 emissions involves voluntarily matching electricity supply requirements with a carbon-free power generation source, which supports the use of emission-free electricity and demonstrates a commitment to the environment. Other strategies to reduce scope 2 emissions include: energy efficiency measures, implementation of on-site generation, purchasing renewable energy certificates (RECs) or emissions free energy certificates (EFECs) and enhanced grid interaction.

Scope 3 Emissions

Scope 3 emissions encompass all other indirect GHG emissions associated with upstream and downstream activities across a company’s supply chain. These emissions, though indirect, play a significant role in contributing to a company’s total carbon footprint. Key components of scope 3 emissions include:

Upstream Emissions

Upstream emissions refer to indirect emissions associated with activities occurring before the product or service reaches the company’s operations. These emissions include:

  • Purchased goods and services
  • Capital goods
  • Fuel and energy related activities
  • Transportation and distribution from company suppliers
  • Waste from operations
  • Business travel
  • Employee commuting
  • Assets leased by the company

Downstream Emissions

Downstream emissions refer to indirect emissions associated with activities occurring after the product or service leaves the company’s operations and is used or disposed of by customers or end-users. These emissions include:

  • Transportation and distribution from company to distributors, retailers and end users
  • Processing sold products
  • Use of sold products, both products that directly or indirectly consume energy
  • End-of-life treatment of sold products
  • Assets owned by the company but leased to other companies
  • Franchises
  • Investments

Steps to reduce scope 3 emissions are often complex and require mindful and strategic action. Reduction efforts involve choosing more sustainable vendors and encouraging existing ones to engage in more sustainable practices. Businesses may implement a scope 3 or GHG materiality threshold to better understand their emissions. A scope 3 or GHG materiality threshold is designed to help companies identify and understand the relative importance of specific ESG and sustainability topics and is typically looked at through two lenses: potential impact on the organization and importance to stakeholders. Completing a scope 3 or GHG materiality threshold is a key step to take in order determine which emissions can be considered ’material’ to your climate disclosure and keep stakeholders up to date on scope 3 emissions.

While scope 3 emissions are indirect, they often account for the majority of a company’s total emissions. Scope 3 measurement and reporting is still in its early stages and is likely the most difficult scope to address for reduction. Since scope 3 emissions are indirect, it is difficult to gain primary emissions data for activities outside of a business’s normal operations. Additionally, reducing scope 3 emissions relies on influencing external partners and vendors across a business’s value chain to report and reduce their emissions.

Optimize Your Emissions Reduction Strategy

The path to comprehensive emissions measurement and reduction is complex, requiring a customized approach tailored to each company’s operations, budget, goals and timeline. By taking a proactive, multi-pronged approach to emissions reduction, businesses can effectively shrink their emissions and environmental impact.

Addressing climate change and reducing greenhouse gas emissions are critical challenges that businesses must tackle head-on. By understanding the different categories of emissions and implementing targeted strategies across scopes 1, 2 and 3, businesses can make significant progress in shrinking their carbon footprints.

Constellation Navigator, a division of Constellation, stands ready to assist businesses in this journey. With our customized paths to decarbonization and sustainable solutions, backed by advanced technology platforms and experienced advisors, we can help organizations set and meet their environmental and operational goals. From carbon accounting and sustainability advisory to utility bill management and rebate administration, Constellation Navigator has the expertise to guide businesses towards a more sustainable future. Contact Constellation Navigator today to start your emissions reduction journey and pave the way towards a more sustainable, cost-effective, efficient future for your business.

Contact Us

 

  1. https://www.epa.gov/climateleadership/scope-1-and-scope-2-inventory-guidance

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

 

The post Scope 1, 2 and 3 Emissions: What to Address First in Your GHG Reduction Journey appeared first on Constellation's Energy4Business Blog.

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In our April 2024 edition of Fortunato & Friends, Constellation’s Chief Economist, Ed Fortunato, sat down with Neil Chatterjee, former chairman...

The post Webcast: A Conversation With Former FERC Chairman and Commissioner, Neil Chatterjee appeared first on Constellation's Energy4Business Blog.

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In our April 2024 edition of Fortunato & Friends, Constellation’s Chief Economist, Ed Fortunato, sat down with Neil Chatterjee, former chairman and commissioner of the Federal Energy Regulatory Commission (FERC). They discussed FERC’s role and importance in the energy sector, challenges and opportunities for the energy industry, 2024 election outlooks and potential impacts, and more.

3:08 – What is FERC and what is its role?

8:17 – How did you maintain bipartisanship in your role at FERC?

11:12 – How do FERC and the Department of Energy (DOE) complement each other?

13:00 – How can newfound energy demand issues be solved?

14:23 – Make energy boring again

18:50 – The future of energy storage

20:04 – Is the U.S. going to remain the dominant LNG supplier?

25:45 – Natural gas pipelines

28:34 – Audience Q&A: Natural gas storage, pipelines and additional LNG questions

38:18 – Why is natural gas so cheap while my electricity prices are so high?

44:26 – Bipartisan action on energy issues in Congress and the Senate

48:10 – 2024 Election outlook and potential impacts

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© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webcast: A Conversation With Former FERC Chairman and Commissioner, Neil Chatterjee appeared first on Constellation's Energy4Business Blog.

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As the demand for energy continues to rise, integrating sustainability into your energy strategy has emerged as a key priority....

The post Top 3 Challenges for Businesses Starting a Sustainability Plan appeared first on Constellation's Energy4Business Blog.

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As the demand for energy continues to rise, integrating sustainability into your energy strategy has emerged as a key priority. This approach not only aims to meet your current energy needs but also focuses on reducing environmental impact, promoting clean energy resources, and ensuring long-term sustainability.

The value of an integrated energy strategy has been evident for years, but organizations often face significant challenges in developing and implementing a comprehensive sustainability plan. The pursuit of sustainability progress and decarbonization alongside energy management is creating a new level of complexity that is transforming day-to-day business operations. There are countless energy solutions in the market with new technologies emerging every year, but deciding which ones to implement, how, and when can be a significant undertaking. Even for those that have successfully shaped their strategy, many find that they are ill-equipped to measure its effectiveness, timeliness or ROI.

Constellation Navigator, with its deep experience in energy management and sustainability, is well-equipped to help your business address these complex challenges and create effective sustainability strategies.

Navigating Common Hurdles in Sustainability Planning

Procurement teams, sustainability teams and facility managers often face a range of challenges when developing and implementing a comprehensive sustainability plan. From producing insights based on operational data to managing costs, these challenges can stem from various aspects of their operations. Let’s explore three of the most common challenges teams encounter and how Constellation Navigator can help overcome them.

Digitization

Digitizing files and automating data collection is often spurred by a simpler need: visibility. Your business needs oversight into its costs and operations, but you still may be managing manual data entry and generating reports in spreadsheets, leading to human prone error and lacking auditability and transparency. For some businesses, these activities are so time consuming that the task is only completed quarterly or annually, even when the insights would be valuable more frequently.

To help you gain visibility and insights, Constellation Navigator works with you to:

  • Automate data ingestion, normalize large datasets and validate data accuracy to help catch errors you may be overlooking.

As a Constellation electricity or natural gas customer, we can have this data digitized and available for additional analysis.

  • Create reporting, alerts and customized dashboards that refresh whenever new data is available, potentially eliminating the need for manual data entry or compiling spreadsheets.
  • Customize analytics to get the visibility you need and uncover insights you previously may not have had access to.

By leveraging Constellation Navigator’s data management solutions, you can save time, streamline your processes, and gain valuable insights to make information decisions and drive operational efficiency.

Sustainability

While many organizations have begun to develop sustainability goals and a clear path to achieve them, just as many are unsure where to start. It may be difficult for your business to keep up with changing legislation, customer or supply chain demand, and stakeholder pressure from investors, employees, consumers and clients.

Constellation Navigator can help your business:

  • Calculate a baseline footprint across your portfolio of facilities and vehicles.
  • Build a decarbonization roadmap based on the unique characteristics and goals of your business.
  • Use GHG Protocol and other standard reporting frameworks to measure progress over time.

With Constellation Navigator’s Sustainability Advisory, you can develop a clear strategy, set achievable targets, and demonstrate your commitment to environmental responsibility, positioning your business for long-term success in the evolving sustainability landscape.

Cost Management

Cost management often focuses on reducing energy costs through a power or gas contract and minimizing market volatility. For some, cost is also a major factor driving choices in on-site projects or equipment upgrades, while for others, simply finding ways to streamline operations and save time helps their team do more with less.

To help find opportunities to manage costs, Constellation Navigator works to:

  • Automate data management and reporting and set up secure bill pay to help alleviate the amount of time your Accounts Payable team spends fulfilling routine tasks.
  • Strategize the priority and sequencing of on-site projects and equipment upgrades to help maximize the potential rebate or incentives offered by local utility programs.
  • Establish one continuous data ingestion process that can be shared across platforms so that your procurement team, Accounts Payable team, and sustainability team are all working from the same playbook.

By implementing Constellation Navigator’s cost optimization strategies, you can reduce operational expenses, maximize incentives, and streamline processes, allowing your business to focus its resources on growth and sustainability goals.

Let Constellation Navigator Optimize Your Sustainability Journey

You may face many challenges in shaping and measuring the effectiveness of your integrated energy strategies. Our dedicated Constellation Navigator team is committed to providing the clearest path for you to set and meet your environmental and operational goals, making it easier for you to achieve sustainability success.

Contact us today to start turning your challenges into opportunities and creating long-term sustainability success.

Contact Us

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Top 3 Challenges for Businesses Starting a Sustainability Plan appeared first on Constellation's Energy4Business Blog.

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According to a 2023 Bloomberg Intelligence study, seven in 10 executives in the United States view energy-transition efforts as a...

The post Roadmap to Sustainability: Does Your Business Have a Plan in Place? appeared first on Constellation's Energy4Business Blog.

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According to a 2023 Bloomberg Intelligence study, seven in 10 executives in the United States view energy-transition efforts as a competitive advantage and 75% say that failing to plan for the energy transition may expose them to revenue loss and activism1. In an effort to make strong sustainability statements, many companies are setting ambitious climate goals, such as Constellation’s commitment to achieve 100% carbon-free energy generation and 100% reduction in operational emissions by 20402.

While some businesses may have the resources onsite to plan for and integrate sustainable practices into their business strategies, others may need assistance from energy experts, such as Constellation, who can provide insights to customers about the emerging trends in sustainability and help them develop and implement an integrated strategy to meet short- or long-term goals.

What is a Sustainability Roadmap

A sustainability roadmap is a strategic plan that outlines a company’s goals and actions to become more sustainable over time. It typically involves a comprehensive assessment of a company’s current sustainability practices, identification of key sustainability issues and opportunities, and development of a plan to address those issues and opportunities.

To create a sustainability roadmap, a company may begin by conducting a sustainability audit or assessment, which involves evaluating the company’s current sustainability practices and identifying areas where improvements can be made. This may include assessing the company’s energy use, waste management, water use, supply chain practices, and other sustainability-related activities.

Once the assessment is complete, the company can use the information gathered to develop a sustainability roadmap that outlines specific goals and actions to improve its sustainability performance. This may involve setting targets for reducing energy use or greenhouse gas emissions, increasing the use of renewable energy sources, improving waste management practices, or implementing sustainable sourcing practices.

In addition to setting specific goals, a sustainability roadmap may also include a timeline for achieving those goals, as well as metrics for measuring progress along the way. It may also involve engaging stakeholders, including employees, customers, and suppliers, to ensure that sustainability is integrated throughout the organization.

Constellation can help build a customized roadmap that incorporates your goals and budgets. We can recommend a plan with a gradual transition from conventional to clean power supply with minimum risk in the desired timelines. The plan would include utilizing some of our diverse sustainability products along with a vast group of qualified channel partners with novel technologies.

Constellation Navigator, a division of Constellation, delivers customized paths and sustainable solutions for customers to set and meet their environmental and operational goals. Driven by advanced technology platforms and experienced advisors with decades of experience, it provides strategies to help organizations reduce their carbon footprints. By combining industry expertise with powerful data analytics, Constellation Navigator helps businesses solve challenges across the energy lifecycle including carbon accounting, sustainability advisory, utility bill management and rebate administration.

Once a sustainability plan is in place, the roadmap could help demonstrate the business’ commitment to sustainability.

A Sample Roadmap to Sustainability:

 

  1. Measure, Baseline and Goal Setting

The first step in your sustainability roadmap is to track GHG emissions and establish goals around Scope 1, 2 and 3 emissions.

  • Scope 1: Direct emissions created from fuel consumed onsite.
  • Scope 2: Indirect emissions associated with the purchase of electricity.
  • Scope 3: All other emissions, including both up and downstream.

There are various types of reduction targets; Absolute, Intensity, % Renewable or % Carbon-Free, Net Zero and Science-Based Targets are the most common.

In order to set these goals, you’ll need to understand your usage, carbon footprint and other key data about your facilities.

Carbon accounting and utility bill management platforms can help you proactively identify trends and manage costs in your energy, water, sewer, and diesel expenditures. Combining your utility bill data into an easy and accessible format that provides detailed reporting on your energy usage in one convenient view allows you to develop better and more comprehensive strategies to optimize spend. The platform also creates an all-encompassing utility expense profile from your bill data across all locations in one place, making payments and data easier to manage.

Once you have a better understanding of your facility usage and have begun to develop a sustainability strategy, a carbon accounting program allows you to develop a baseline of your carbon emissions, report it across multiple frameworks, and identify and prioritize carbon reduction or offset actions you can implement. Using this tool, you will be able to proactively measure your greenhouse gas emissions, visualize your carbon footprint, and track energy efficiency projects, RECs/EFECs purchases, offsite renewable procurement, or hourly carbon-free energy matching, which will help you meet your climate goals.

  1. Energy Efficiency Upgrades

The U.S. Department of Energy (DOE) identifies energy efficiency as one of the easiest and most cost-effective ways to combat the climate crisis, reduce consumer energy costs and improve U.S. business competitiveness. Constellation offers consultative based energy efficiency solutions structured around efficiency, sustainability and resiliency. Energy efficiency upgrades come in the form of infrastructure improvements, such as LED lighting and HVAC upgrades. Behind-the-meter efficiency projects can directly lower GHG emissions while reducing utility bills. Technology upgrades and infrastructure improvements with energy efficiency measures can provide customers more control of energy consumption and onsite resiliency while providing sustainability benefits at the same time. These projects can also produce benefits such as operations and maintenance (O&M) cost savings and immediate and future capital cost avoidance.

Our Energy Made Efficiency (EME) program, which requires no upfront capital, is one example of Constellation’s service offerings in this area. Under this program, customers can realize cost savings by reducing energy consumption (and consequently carbon emissions), and the charges for efficiency projects appear on your energy bill. Your organization can also benefit from various rebates and incentives available from utilities and other third parties for your energy efficiency projects. These projects encompass new construction, equipment replacement and retrofit endeavors.

  1. The Purchase of EFECs and RECs

EFECs represent the emission-free attributes of generating sources, as defined by PJM, that do not emit greenhouse gases, such as solar, wind, nuclear and hydropower. For example, when you purchase a Carbon-Free Electricity Plan from Constellation, the electricity you purchase will be matched with EFECs sourced primarily from carbon-free nuclear generation.

RECs, on the other hand, represent the emission-free attributes of one megawatt hour (MWh) of electricity generated by a renewable energy resource, such as wind or solar.

“While investing in RECs or EFECs comes with a small incremental cost, it creates the opportunity for a business to quickly indicate to its customers and shareholders that it has started the process toward achieving sustainable practices,” says Raj Bazaj, Constellation’s executive director of retail power sales.

  1. Procurement of Offsite Renewables

According to the Clean Energy Buyers Association, which tracks publicly announced clean energy purchases by commercial and industrial (C&I) customers, growth in renewable energy purchases has surged to nearly 17 GW in 2022 – growth of 27% from 2021 and 172% since 2018, when Constellation first started offering customers an offsite renewable product. Customers can achieve renewable goals and make a local offsite renewable energy purchase with a retail power supply contract through our Constellation Offsite Renewables (CORe) product. Our CORe and CORe+ solutions enable customers to either integrate renewable energy purchases from existing renewable generation, including solar and wind facilities, into a load-following energy supply or support the development of new renewable energy assets on their regional grid.

  1. Hourly Carbon-Free Energy Matching

Currently, most net zero clean energy supplies are accounted for by matching energy use with renewable and/or emission-free energy certificates on an annual basis, without considering where or when the energy was produced. Hourly carbon-free energy matching is an opportunity to pair your electricity use with a local emission-free energy source. Utilizing hour-by-hour regional tracking, Constellation’s hourly carbon-free energy matching is the most advanced, hourly-matching application of its kind, going beyond other net zero programs that aggregate clean energy megawatts over time, and giving customers clearer and more accurate data on their electricity consumption.

Take Action Now

 

 

When it comes to setting goals for energy sustainability activities, it is critical to find the right energy solutions provider to help you navigate what can sometimes be an overwhelming and seemingly complicated process—Constellation can help ensure your organization is implementing a robust plan while staying updated and adjusting as needed to the rapidly changing landscape of new products and technologies. Learn more about our energy solutions by visiting www.constellation.com.

 

Sources

  1. https://www.bloomberg.com/company/press/bioomberg-intelligence-survey-finds-investors-and-c-suite-embrace-esg-despite-concerns/
  2. https://www.constellationenergy.com/our-esg-principles/environment-and-sustainability/climate-commitment.html

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Roadmap to Sustainability: Does Your Business Have a Plan in Place? appeared first on Constellation's Energy4Business Blog.

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Renewable energy growth in corporate and institutional procurement is accelerating at a rapid pace as corporations commit to aggressive sustainability...

The post Managing Renewables Growth for a Clean Energy Future appeared first on Constellation's Energy4Business Blog.

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Renewable energy growth in corporate and institutional procurement is accelerating at a rapid pace as corporations commit to aggressive sustainability goals. According to the Clean Energy Buyers Association, which tracks publicly announced clean energy purchases by commercial and industrial (C&I) customers, growth in renewable energy purchases has surged to nearly 17 GW in 2022 – growth of 27% from 2021 and 172% since 2018, when Constellation first started offering customers an offsite renewable product. This momentum poses capacity challenges, as well as big opportunities and potential to uplift utilities, corporations, the climate and entire economies. However, to realize the full potential of renewable energy, we need to ensure grid resilience and accessibility keep pace with the demand.

Why Grid Resilience is Critical

As climate change accelerates and more renewable energy is being developed, we need to modernize our grid infrastructure. Modernizing the grid requires major upgrades that support both the increase in renewable energy sources and the protection of our grid from storms, cyber threats and potential failures from aging infrastructure. These upgrades include adding transmission lines to connect renewable resources to population centers, as well as updating transformers and load balancing mechanisms. Upgrades like these are necessary for supporting distributed energy resources like rooftop solar and battery storage, which manage increasing energy flows. These upgrades are expensive and take time to implement. It is important that we continue to invest in our grid, or we risk system failure as clean energy increases instead of harnessing it to meet demand, decrease emissions, and combat climate change. Constellation offers efficiency solutions that enable businesses to modernize infrastructure to deliver positive operational, environmental and potential financial outcomes.

How Energy Demand Will Shape Renewable Growth

At the 28th annual United Nations climate meeting, leaders called to triple global renewable energy capacity by 2030. This demand for renewable energy will accelerate at a fast pace due to the demand of companies looking to meet their corporate commitments to cut emissions. Plus, electric vehicle sales will continue to put more pressure on the grid as demand to power more electric vehicles increases.

The number of customers choosing cleaner power is also rising. Large investors are dedicating more resources to renewable projects as there’s more emphasis on ESG metrics. Plus, policy support for decarbonization at the federal, state and local levels of government encourages more companies to operate more sustainably. This combination of factors is accelerating the economy-wide transition and demand for renewable resources.

Such a fast pace of change inevitably creates real capacity challenges. However, by working together, we can manage those challenges. The transition can be successful if we proactively invest in infrastructure upgrades, help pass policies that support sustainability, and innovate responsibly. The challenges are significant, but the opportunity is even greater. Constellation sees tremendous potential for renewable energy if we work collectively to implement solutions.

Constellation’s Solutions

Constellation is taking ambitious steps as a leader in the fight against the climate crisis by providing reliable and resilient energy for customers and uplifting the communities we serve. As renewable expansion escalates, we plan to responsibly keep up with the transition through our business-wide efforts and commitment to develop innovations that match energy demand and meet the future needs of the economy.

Some of our key initiatives helping advance clean energy include:

Supplying reliable clean energy

  • Generate energy from nuclear, hydro, solar and wind, providing about 10 percent of the nation’s carbon-free energy.
  • Produce clean, affordable hydrogen, essential to meeting the federal government’s goal of net zero carbon emissions by 2050.

Providing access to data and insights for customers

  • Offer analytics and technology products to help you get accurate data to build, implement and measure your energy and sustainability strategy.
  • Provide reporting tools to understand baseline energy usage and how energy efficiency upgrades reduce emissions.

Simplifying clean energy procurement

  • Simplify purchasing through aggregated vPPAs, renewable energy certificates, and emission-free energy certificates (EFECs).

Implementing customized energy solutions

  • Install onsite solar energy systems to meet customer sustainability commitments.
  • Make efficiency improvements and help our customers develop and implement demand management strategies.

Advising the clean energy journey

  • Guide customers with energy professionals who create customized sustainability roadmaps to help businesses meet carbon reduction goals.
  • Deliver customized energy management services and solutions to help commercial, industrial and residential customers successfully navigate the evolving landscape.

Constellation is Committed to Clean Energy Solutions

Constellation takes an active role in conferences focused on the renewable transition, recently participating in a panel session on challenges and opportunities in renewable energy procurement, as covered in this GreenBiz article. Executive Director of Renewables Origination, Ben Chadwick, brought Constellation’s experience to the discussion, covering innovative programs like our CORe offering. Chadwick touched on both the challenges and the incredible potential this transformation will bring. By participating in panels like this one, our experts are able to help educate the public while sharing vital insights and discuss solutions that could help responsibly shape the future of renewables.

Contact Constellation today to learn more about how we can help your business achieve its renewable energy and sustainability objectives through customized solutions managed by our experienced energy experts.

Contact Us

 

Sources:

Renewable energy: Global capacity increased by 50% in 2023 | World Economic Forum (weforum.org)

Constellation-2023-Sustainability-Report.pdf

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Managing Renewables Growth for a Clean Energy Future appeared first on Constellation's Energy4Business Blog.

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During the March Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting...

The post Webinar Analysts: Summer Outlook, Gas Storage Highs, and Future Load Growth appeared first on Constellation's Energy4Business Blog.

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During the March Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the El Niño weather pattern and its implications for the spring and summer outlook, updates on the state of the economy and the Federal Reserve’s interest rate policy, analysis of the natural gas production and storage situation and examination of electric demand growth and changes in the generation mix.

Weather Update

Chief Meteorologist Dave Ryan recapped the warmest ever winter in the U.S. and his expectations for the coming seasons. Ryan anticipates milder spring weather, with below-normal temperatures in the South and above-normal temperatures in the North. However, he expects a hot summer for most of the U.S., especially the Midwest and East, potentially ranking among the top 10 summers in terms of cooling degree days. Additionally, the webinar covered drought outlooks in the West and provided an update on the California water season.

All Things Economic

Chief Economist Ed Fortunato provided an update highlighting the Federal Reserve’s interest rate policy. Despite keeping rates unchanged, the Fed signaled possible cuts later in the year. The Federal Open Market Committee left the interest rates unchanged at 4.5% but indicated potential future cuts if inflation approaches 2%. The Fed also plans to continue its quantitative tightening program to reduce its balance sheet. The stock market responded positively to the Fed’s statement, showing resilience against higher-for-longer interest rates.

Natural Gas Fundamentals

The panel of energy fundamentals experts discussed the decline in production due to low prices. Producers have cut three to four Bcf/d in the past month, leading to stabilization in prices. However, questions remain about the stability of these cuts and their impact on market balance in the second half of the year. Additionally, the market is looking for evidence that the cuts will hold or that producers may have to cut production further. Natural gas storage remains bearish, well above last year and the five-year averages due to the warm winter.

Electricity Market Growth

Moving to electricity fundamentals, the webinar highlighted a surge in electric demand from data centers, manufacturing, and plug-in vehicles. This uptick could add the equivalent of California’s entire electricity consumption to the national grid by 2028. The team analyzed this growing demand and discussed the required supply needed to meet the demand.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, May 8th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy prices such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: Summer Outlook, Gas Storage Highs, and Future Load Growth appeared first on Constellation's Energy4Business Blog.

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During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) covered the trend towards the warmest U.S. winter...

The post Webinar Analysts: Two Weeks of Winter appeared first on Constellation's Energy4Business Blog.

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During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) covered the trend towards the warmest U.S. winter on record since 1950, key economic insights, an update on natural gas production and storage, and potential long-term impacts of the recent LNG moratorium.

Weather Update

Chief Meteorologist Dave Ryan kicked off the webinar by discussing the winter that never was. The winter of 2023-2024 is trending to be the warmest on record in the U.S. with very low heating demand and high gas storage levels. The outlook for March and April remains mild with El Niño conditions weakening. The team also covered the drought outlook in the Western and Midwest states.

All Things Economic

Chief Economist Ed Fortunato looked at the current state of the economy, which is strong and resilient, with low unemployment, moderate inflation and steady growth. The Fed is expected to cut rates two or three times before the election, but the impact on the energy markets is likely to be limited. The economy continues to shrug off higher-for-longer interest rates. The Fed is trying to walk a fine line between rate cuts supercharging the economy leading to inflation and holding rates steady potentially sparking a recession.

Natural Gas Fundamentals

U.S. natural gas production reached a record high of 105 BCF per day in January 2024, despite low prices and reduced rig counts. The producers have achieved significant efficiency gains and cost reductions, and some have hedged their output at higher prices. The market is looking for signs of production decline or slowdown to balance the supply and demand. The power markets in the U.S. are also influenced by the gas dynamics as well as the growth of renewable and distributed energy resources.

Regional Market Updates

The team offered some insights into the 2025/26 PJM Base Residual Auction, which is likely to be held in July of this year. Rule changes by the FERC are intended to bolster reliability and ensure units that clear the auction can perform.

The New England capacity markets are undergoing some changes and challenges, as they try to value the reliability and performance of different types of generation.

LNG Export Moratorium

U.S. LNG exports have been increasing and diversifying, but they face some uncertainties and risks due to the potential moratorium imposed by the DOE on new export licenses for facilities that do not currently hold permits from the DOE. The team broke down the short- and long-term impacts of this moratorium, as projects unaffected by the moratorium continue the current narrative of “U.S. LNG exports to double by 2028-29”.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, March 20th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy prices such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: Two Weeks of Winter appeared first on Constellation's Energy4Business Blog.

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As more businesses are looking to decarbonize their energy supply and implement sustainable operations, many are targeting a reduction in...

The post Sustainable Procurement Strategies with Renewable Natural Gas appeared first on Constellation's Energy4Business Blog.

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As more businesses are looking to decarbonize their energy supply and implement sustainable operations, many are targeting a reduction in carbon emissions associated with natural gas use. With a strategic approach to natural gas procurement, businesses can build a customized plan to understand their operational footprint and achieve long-term sustainability goals. One strategic option is to consider incorporating Renewable Natural Gas (RNG) into a natural gas procurement strategy.

What is Renewable Natural Gas?

RNG is physical pipeline-quality natural gas derived from the decomposition of organic matter plus associated environmental attributes. It begins as raw biogas which is then purified to meet applicable pressure, quality and heat content requirements before being injected into a pipeline, like regular natural gas. Biogas can be produced by municipal solid waste landfills, wastewater treatment plant digesters, livestock farms, food production facilities, and organic waste management operations.

The environmental impact of RNG

RNG projects capture and recover methane from landfills or anaerobic digestion (AD) plants. Because methane has a global warming potential more than 25 times that of CO2, and a relatively short (12-year) atmospheric life, capturing and utilizing these emissions can have a near-term beneficial impact on global climate change mitigation, compared to continued use of conventional, fossil-derived natural gas.

Regarding transportation emissions, replacing traditional diesel or gasoline engines with natural gas vehicles that utilize RNG can also significantly contribute to the reduction of nitrogen oxide and particulate matter emissions, resulting in improved local air quality.

Ultimately, replacing fossil fuels with RNG can contribute to lower CO2 emissions on a lifecycle basis. Compared with natural gas used as a transportation fuel in vehicles, the use of RNG can lower emissions by 40 percent .1 In addition, when used to power vehicles, RNG can reduce greenhouse gas (GHG) emissions by up to 91 percent relative to gasoline produced from petroleum.2

How RNG impacts your business

The environmental attributes associated with RNG, which include reduced carbon emissions as compared to fossil-derived natural gas, can be paired with end-users’ natural gas consumption to allow end-users to make renewable energy claims associated with natural gas use. Specific sustainability claims and emission reduction levels will depend upon the specific end-use of the  natural gas and the chosen GHG emission reporting standards. A business’s purchase of RNG attributes may also reduce Scope 1 carbon emissions replaced by biogenic sources, without the need to modify existing infrastructure.

Additionally, businesses can leverage Renewable Energy Certificates (RECs) for RNG paired with natural gas power generation and renewable fuel credits (such as Renewable Identification Numbers (RINs) in the federal Renewable Fuel Standard and Low Carbon Fuel Standard Credits (LCFS Credits) in California’s state level Low Carbon Fuel Standard.

By using sustainable natural gas strategies, businesses can demonstrate to their customers, investors, and employees that they are doing their part to create a cleaner world by reducing their GHG emissions. Constellation is an active participant in the RNG market and can help you to leverage relationships with energy procurement companies to develop your RNG strategy.

Contact Us

 

  1. https://www.tandfonline.com/doi/full/10.1080/10934529.2018.1459076
  2. https://www.eesi.org/papers/view/fact-sheet-biogasconverting-waste-to-energy

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Sustainable Procurement Strategies with Renewable Natural Gas appeared first on Constellation's Energy4Business Blog.

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Transmission Rates and Costs In competitive electricity markets, the final price businesses pay for power includes more than just the...

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Transmission Rates and Costs

In competitive electricity markets, the final price businesses pay for power includes more than just the cost of energy generation. Transmission and distribution costs can make up a significant portion of the final electricity bill. In this Electricity 101 series, we’re breaking down key aspects of purchasing power. This includes transmission: what it is, how rates and costs are determined, and options for business customers in deregulated markets.

What is Electricity Transmission?

Transmission refers to the high-voltage bulk transfer of electrical power from generating power plants to electrical substations near demand centers. The U.S. electric transmission system consists of over 200,000 miles of high-voltage transmission lines and towers that deliver electricity nearly instantaneously across regions. These transmission lines, when interconnected with each other, form regional networks referred to as “power grids” or simply “the grid.”

The transmission grid is different from local power distribution, which refers to the lower voltage wiring from high-voltage substations to customers. Transmission infrastructure may be owned, operated and maintained by electric utilities or independent transmission owners. Regional transmission organizations like PJM in the Midwest/Mid-Atlantic, California ISO, New York ISO and Electric Reliability Council of Texas (ERCOT) coordinate operations and pricing across multiple states.

Transmission pricing varies across different regions of the U.S. power grid. To manage grid traffic, standardize access, ensure reliability, and control management across the regions, the Federal Energy Regulatory Commission (FERC) helped set up nonprofit Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) beginning in the late 1990s. While RTOs span larger multi-state areas, ISOs tend to serve individual states.

How are Transmission Rates and Costs Set?

Within RTO and ISO territories, transmission line owners can make returns on their infrastructure investments through rates and annual charges to power suppliers and consumers based on budgeting methods. These charges proposed by the transmission owners must be approved by the FERC to ensure fair competition and reasonable rates.

While the exact charges and rate structures vary by RTO and ISO across regions, common costs include infrastructure investment cost recovery, new project development costs, reliability service fees and grid loss charges. Driven by aging infrastructure, new generation and changing demand, transmission rates within most U.S. RTO and ISO regions have steadily risen.

How are Transmission Costs Calculated?

For business customers, transmission costs are typically demand-based charges influenced by their peak usage. Regional transmission operators track the capacity each business requires using metrics like the billing demand.

If a customer has a fixed-rate electricity supply contract per MWh, the formula for estimating monthly transmission costs bases the rates on the business’ peak demand allotment, applicable regional rates, and days in the billing cycle. This total cost is then divided by estimated total energy usage to incorporate into the per MWh unit price. This final calculation ties transmission costs to peak capacity demand.

Transmission Management Options for Businesses

In deregulated electricity markets, businesses have more options to control transmission costs and risk exposure.

Major types of transmission rate products include:

Fixed Transmission – Locks in the transmission price for the contract term, maximizing budget certainty with the lowest amount of risk.

Transmission Price Adjust – Transmission prices are fixed at the time of contract, but subsequent incremental changes from the grid operator are passed through based on capacity volume (typically updated annually). This could result in a credit or an additional charge.

Transmission Cost Adjust – Transmission prices are fixed at the time of contract, but any incremental changes to your usage volumes and monthly demand charges are passed through at the transmission rate at the time they are adjusted (typically updated annually). This could result in a credit or an additional charge.

Pass-Through Rate – Businesses pay their actual transmission costs based on usage and changing rates published by the grid operator. They are billed for precise costs – no more and no less – which provides flexibility but less predictable bills.

As transmission operators adjust underlying rates, costs can fluctuate for businesses using variable rate options, even with consistent or decreasing electricity usage. Likewise, changes in a business’ peak demand could alter transmission costs for non-fixed rate structures. Monitoring these potential demand charge and rate change impacts is essential for transmission cost management with adjustable plans.

Work with Constellation Energy Experts

Navigating market changes and evaluating their impacts can be challenging for organizations. With decades of electricity market experience, Constellation’s energy experts can help determine the optimal transmission management strategies for your business based on financial goals, capacity needs, risk tolerance, and other individual priorities. Contact us today to learn how Constellation can simplify transmission purchasing for your business.

 

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  1. https://www.eia.gov/electricity/gridmanager/transmission.html
  2. https://etraining.org/courses/electricity-markets

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Understanding Electricity Transmission appeared first on Constellation's Energy4Business Blog.

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In regulated electricity markets, business customers must purchase electricity from their designated utility provider at rates set by the public...

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In regulated electricity markets, business customers must purchase electricity from their designated utility provider at rates set by the public utilities commission. However, the deregulation of energy markets in many states introduces valuable options along with complex decisions for business customers. In the first post in this ‘Fundamentals of Electricity Choice’ series, Constellation will explain key aspects of electricity choice to help businesses make informed energy decisions.

Electricity choice allows businesses to shop for competitive electricity plans from retail providers and choose the optimal plan to meet their unique needs. While business customers can select their electricity provider in deregulated markets, the physical transmission and distribution of electricity is still managed regionally by local utilities and grid operators to ensure reliable delivery of power.

Competitive electricity markets give businesses more options and greater control. Providers compete on rates, contract terms, customer service and features. Businesses can evaluate plans based on their unique budget goals, risk tolerance and energy usage patterns.

Key Differences:

  • Regulated markets: Rates and providers are dictated by the utilities commission. Customers bear the financial risks of utility infrastructure investments.
  • Competitive markets: Businesses can choose plans from various providers and plans based on their needs, budget and risk preferences.

As a business customer, understanding the key aspects of retail electricity choice will help navigate through electricity plan selection in a competitive market.

Choosing an Electricity Plan

With electricity choice, customers can shop for electricity plans from retail providers and select the best choice based on their needs instead of taking a one-size-fits-all approach. Important considerations when choosing a plan include the budget, risk tolerance, and energy usage patterns of each business. Businesses should make sure to compare all costs, not just per kWh rates.

For a business to identify the optimal plan, it must weigh many complex variables. Working with an experienced electricity advisor can help evaluate the right plan for each business’ unique needs and objectives. Businesses should start by evaluating the main types of electricity plans available to decide the best fit.

It is important for businesses to consider budget, risk tolerance, usage patterns, contract terms, renewal options and renewable energy additions.

Types of Electricity Plans

Fixed Rate

  • Fixed rate plans allow customers to lock in a set price per kWh for the entire contract term, typically 1-5 years. This provides maximum budget certainty but less flexibility.
  • If market prices fall below the fixed rate, you will pay more than the current market price because your price remains unchanged regardless of market fluctuations.

Index Rate

  • Index plans tie the price per kWh to market conditions like electricity demand, fuel costs and weather. Rates fluctuate based on underlying indexes.
  • Index rates can allow customers to take advantage of lower prices when market prices fall. However, they also expose customers to higher bills during extreme weather events or peak demand times when prices spike.
  • Index rates provide less budget certainty due to variable pricing that changes based on market conditions.

Managed Rate

  • Managed electricity plans blend fixed and index rate components to balance budget stability and market exposure.
  • For example, you could lock in a portion of your usage at a fixed rate and pay an index rate beyond that base amount. This allows you to benefit from market opportunities while still having some price certainty.
  • Managed plans offer more flexibility to optimize costs than locking in a fixed rate, but less certainty than a pure fixed rate.
  • Managed plans may provide less exposure to extreme index price events than a pure index plan.

Developing a Customized Electricity Purchasing Strategy

Working with a trusted provider like Constellation allows business customers to embrace a purchasing strategy tailored to their unique usage profiles, risk tolerance and budget goals. This may involve incorporating a mix of plan types and optimally timing fixed price purchases.

Rather than settling for a generic one-size-fits-all electricity plan, businesses can take control of their power purchases with a strategic, specialized approach.

Choosing a Retail Electric Provider

When making an electricity choice, evaluating and selecting a provider is one of the most important decisions for your business. Navigating the options and identifying the ideal provider to meet a business’s current and future needs requires consideration of several key factors, including:

  • Strong reputation and years in business
  • Flexible plan options to meet your business needs
  • Transparent, easy-to-understand pricing
  • Strong customer service and support
  • Tools and resources to make informed decisions

With these criteria in mind, Constellation can be an invaluable resource to help your business successfully navigate electricity choice.

Let Constellation Simplify Electricity Buying

With over 20 years of expertise in energy markets, Constellation has the experience and energy specialists to simplify electricity choice for your business. We can eliminate the complexities of purchasing power by customizing a strategy tailored to your budget, risk tolerance, energy needs and sustainability goals. Our flexible plan options, clear pricing and exceptional customer service provide the support businesses need to confidently navigate the energy market.

Contact Constellation today to learn more about how we can help your organization optimize costs, minimize risks, and meet your power supply objectives.

Contact Us

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Understanding Electricity Choice for Businesses appeared first on Constellation's Energy4Business Blog.

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5 min read

Climate change is driven by increasing greenhouse gas (GHG) emissions, like carbon dioxide, methane, and nitrous oxide, which trap heat in the atmosphere. These gases are released into the atmosphere, often from business operations, including, but not limited to, power usage for facilities, transportation of goods, and industrial manufacturing processes. Climate change is one of the most urgent challenges facing businesses today. As public awareness grows around this issue, major corporations are looking to reduce their carbon footprint and lessen their emissions impacts.

More businesses are also taking inventory of their greenhouse gas (GHG) emissions sources, either direct or indirect, to find areas of improvement in order to comply with disclosure rules, set targets, and better align mitigation and adaptation strategies.

Companies are also implementing their own aggressive business-wide sustainability goals to become leaders in their respective industries and to access the growing list of economic, environmental and social benefits of doing so. As another critical component of goal setting, many businesses are creating target dates (e.g., 50% or 100% emissions-free by year 2030 or 2040) to maintain accountability in reaching their emission reduction goals.

The first key step is understanding the different categories of emissions associated with business operations. Before your business implements targeted strategies for reduction, let’s dive into the emissions, categorized into three scopes:

  • Scope 1 emissions: Originate from sources owned or controlled by the company.
  • Scope 2 emissions: Arise from fossil fuel consumption for power, such as power plants providing purchased electricity.
  • Scope 3 emissions: Come from indirect sources, such as company travel and supply chain management.

These emissions are defined by the GHG Protocol, which is widely recognized and used as the international standard for measuring and managing greenhouse gas emissions.

Starting with Scope 1 Emissions

Scope 1 emissions comprise of sources from a business’s owned or controlled assets, and upgrades to these areas are typically the most feasible to measure, control and reduce. These emissions can be separated into four primary categories:

Stationary Combustion: Emissions resulting from the on-site burning of fuels to power equipment like boilers, generators furnaces and more. Examples of these fuels are natural gas, propane, gasoline, diesel, biomass and wood.

Mobile Combustion: Emissions arising from fuel burned by vehicles that are owned or leased by a company, including transportation fleets.

Fugitive Emissions: Emissions from unintentional leaks and releases of greenhouse gases such as refrigeration, air conditioning and fire suppression systems that may leak chemicals.

Process Emissions: Emissions generated directly from industrial activities and chemical reactions in heavy industry and manufacturing plants.

Measuring and reducing scope 1 emissions is foundational to any corporate carbon management strategy. Businesses can implement various energy solutions, such as enhancing energy efficiency, incorporating electric vehicles (EVs) into their fleet, or incorporating renewable natural gas (RNG) into your energy supply, to curtail these emissions effectively.

Scope 2 Emissions

Scope 2 emissions represent indirect greenhouse gas emissions associated with purchased electricity, steam, heating and cooling used to power company operations. These emissions, although physically occurring at the facility where they are generated, are included in an organization’s GHG inventory because they stem from the organization’s energy use, as highlighted by the EPA.1

When accounting for scope 2 emissions from purchased electricity, businesses have two primary approaches:

Location-Based Method: Assesses average emission factors for your regional utility grids supplying your company’s facilities. It provides insights into the general carbon intensity of electricity where your company operates.

Market-Based Method: Reflects emissions from electricity that companies have purposefully chosen. It inventories emissions via contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attributes.

Scope 2 emissions may also include purchased heating and cooling that companies purchase from their utility or energy suppliers.

Reducing scope 2 emissions involves voluntarily matching electricity supply requirements with a carbon-free power generation source, which supports the use of emission-free electricity and demonstrates a commitment to the environment. Other strategies to reduce scope 2 emissions include: energy efficiency measures, implementation of on-site generation, purchasing renewable energy certificates (RECs) or emissions free energy certificates (EFECs) and enhanced grid interaction.

Scope 3 Emissions

Scope 3 emissions encompass all other indirect GHG emissions associated with upstream and downstream activities across a company’s supply chain. These emissions, though indirect, play a significant role in contributing to a company’s total carbon footprint. Key components of scope 3 emissions include:

Upstream Emissions

Upstream emissions refer to indirect emissions associated with activities occurring before the product or service reaches the company’s operations. These emissions include:

  • Purchased goods and services
  • Capital goods
  • Fuel and energy related activities
  • Transportation and distribution from company suppliers
  • Waste from operations
  • Business travel
  • Employee commuting
  • Assets leased by the company

Downstream Emissions

Downstream emissions refer to indirect emissions associated with activities occurring after the product or service leaves the company’s operations and is used or disposed of by customers or end-users. These emissions include:

  • Transportation and distribution from company to distributors, retailers and end users
  • Processing sold products
  • Use of sold products, both products that directly or indirectly consume energy
  • End-of-life treatment of sold products
  • Assets owned by the company but leased to other companies
  • Franchises
  • Investments

Steps to reduce scope 3 emissions are often complex and require mindful and strategic action. Reduction efforts involve choosing more sustainable vendors and encouraging existing ones to engage in more sustainable practices. Businesses may implement a scope 3 or GHG materiality threshold to better understand their emissions. A scope 3 or GHG materiality threshold is designed to help companies identify and understand the relative importance of specific ESG and sustainability topics and is typically looked at through two lenses: potential impact on the organization and importance to stakeholders. Completing a scope 3 or GHG materiality threshold is a key step to take in order determine which emissions can be considered ’material’ to your climate disclosure and keep stakeholders up to date on scope 3 emissions.

While scope 3 emissions are indirect, they often account for the majority of a company’s total emissions. Scope 3 measurement and reporting is still in its early stages and is likely the most difficult scope to address for reduction. Since scope 3 emissions are indirect, it is difficult to gain primary emissions data for activities outside of a business’s normal operations. Additionally, reducing scope 3 emissions relies on influencing external partners and vendors across a business’s value chain to report and reduce their emissions.

Optimize Your Emissions Reduction Strategy

The path to comprehensive emissions measurement and reduction is complex, requiring a customized approach tailored to each company’s operations, budget, goals and timeline. By taking a proactive, multi-pronged approach to emissions reduction, businesses can effectively shrink their emissions and environmental impact.

Addressing climate change and reducing greenhouse gas emissions are critical challenges that businesses must tackle head-on. By understanding the different categories of emissions and implementing targeted strategies across scopes 1, 2 and 3, businesses can make significant progress in shrinking their carbon footprints.

Constellation Navigator, a division of Constellation, stands ready to assist businesses in this journey. With our customized paths to decarbonization and sustainable solutions, backed by advanced technology platforms and experienced advisors, we can help organizations set and meet their environmental and operational goals. From carbon accounting and sustainability advisory to utility bill management and rebate administration, Constellation Navigator has the expertise to guide businesses towards a more sustainable future. Contact Constellation Navigator today to start your emissions reduction journey and pave the way towards a more sustainable, cost-effective, efficient future for your business.

Contact Us

 

  1. https://www.epa.gov/climateleadership/scope-1-and-scope-2-inventory-guidance

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

 

The post Scope 1, 2 and 3 Emissions: What to Address First in Your GHG Reduction Journey appeared first on Constellation's Energy4Business Blog.

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Amanda Donohue
Webcast: A Conversation With Former FERC Chairman and Commissioner, Neil Chatterjee https://blogs.constellation.com/energy-management/webcast-a-conversation-with-former-ferc-chairman-and-commissioner-neil-chatterjee/ Fri, 12 Apr 2024 15:59:16 +0000 https://blogs.constellation.com/energy-management/webcast-virtual-power-plants-and-what-they-mean-for-your-business-copy/ In our April 2024 edition of Fortunato & Friends, Constellation’s Chief Economist, Ed Fortunato, sat down with Neil Chatterjee, former chairman...

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2 min read

In our April 2024 edition of Fortunato & Friends, Constellation’s Chief Economist, Ed Fortunato, sat down with Neil Chatterjee, former chairman and commissioner of the Federal Energy Regulatory Commission (FERC). They discussed FERC’s role and importance in the energy sector, challenges and opportunities for the energy industry, 2024 election outlooks and potential impacts, and more.

3:08 – What is FERC and what is its role?

8:17 – How did you maintain bipartisanship in your role at FERC?

11:12 – How do FERC and the Department of Energy (DOE) complement each other?

13:00 – How can newfound energy demand issues be solved?

14:23 – Make energy boring again

18:50 – The future of energy storage

20:04 – Is the U.S. going to remain the dominant LNG supplier?

25:45 – Natural gas pipelines

28:34 – Audience Q&A: Natural gas storage, pipelines and additional LNG questions

38:18 – Why is natural gas so cheap while my electricity prices are so high?

44:26 – Bipartisan action on energy issues in Congress and the Senate

48:10 – 2024 Election outlook and potential impacts

Watch Full Recording

Please stay tuned for more updates regarding our next Fortunato & Friends webinar. Ensure you are subscribed to email communications to receive updates from Constellation.

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© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

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Dan Brenner
Top 3 Challenges for Businesses Starting a Sustainability Plan https://blogs.constellation.com/roadmap-to-sustainability/top-3-challenges-for-businesses-starting-a-sustainability-plan/ Tue, 09 Apr 2024 13:19:36 +0000 https://blogs.constellation.com/roadmap-to-sustainability/roadmap-to-sustainability-does-your-business-have-a-plan-in-place-copy/ As the demand for energy continues to rise, integrating sustainability into your energy strategy has emerged as a key priority....

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3 min read

As the demand for energy continues to rise, integrating sustainability into your energy strategy has emerged as a key priority. This approach not only aims to meet your current energy needs but also focuses on reducing environmental impact, promoting clean energy resources, and ensuring long-term sustainability.

The value of an integrated energy strategy has been evident for years, but organizations often face significant challenges in developing and implementing a comprehensive sustainability plan. The pursuit of sustainability progress and decarbonization alongside energy management is creating a new level of complexity that is transforming day-to-day business operations. There are countless energy solutions in the market with new technologies emerging every year, but deciding which ones to implement, how, and when can be a significant undertaking. Even for those that have successfully shaped their strategy, many find that they are ill-equipped to measure its effectiveness, timeliness or ROI.

Constellation Navigator, with its deep experience in energy management and sustainability, is well-equipped to help your business address these complex challenges and create effective sustainability strategies.

Navigating Common Hurdles in Sustainability Planning

Procurement teams, sustainability teams and facility managers often face a range of challenges when developing and implementing a comprehensive sustainability plan. From producing insights based on operational data to managing costs, these challenges can stem from various aspects of their operations. Let’s explore three of the most common challenges teams encounter and how Constellation Navigator can help overcome them.

Digitization

Digitizing files and automating data collection is often spurred by a simpler need: visibility. Your business needs oversight into its costs and operations, but you still may be managing manual data entry and generating reports in spreadsheets, leading to human prone error and lacking auditability and transparency. For some businesses, these activities are so time consuming that the task is only completed quarterly or annually, even when the insights would be valuable more frequently.

To help you gain visibility and insights, Constellation Navigator works with you to:

  • Automate data ingestion, normalize large datasets and validate data accuracy to help catch errors you may be overlooking.

As a Constellation electricity or natural gas customer, we can have this data digitized and available for additional analysis.

  • Create reporting, alerts and customized dashboards that refresh whenever new data is available, potentially eliminating the need for manual data entry or compiling spreadsheets.
  • Customize analytics to get the visibility you need and uncover insights you previously may not have had access to.

By leveraging Constellation Navigator’s data management solutions, you can save time, streamline your processes, and gain valuable insights to make information decisions and drive operational efficiency.

Sustainability

While many organizations have begun to develop sustainability goals and a clear path to achieve them, just as many are unsure where to start. It may be difficult for your business to keep up with changing legislation, customer or supply chain demand, and stakeholder pressure from investors, employees, consumers and clients.

Constellation Navigator can help your business:

  • Calculate a baseline footprint across your portfolio of facilities and vehicles.
  • Build a decarbonization roadmap based on the unique characteristics and goals of your business.
  • Use GHG Protocol and other standard reporting frameworks to measure progress over time.

With Constellation Navigator’s Sustainability Advisory, you can develop a clear strategy, set achievable targets, and demonstrate your commitment to environmental responsibility, positioning your business for long-term success in the evolving sustainability landscape.

Cost Management

Cost management often focuses on reducing energy costs through a power or gas contract and minimizing market volatility. For some, cost is also a major factor driving choices in on-site projects or equipment upgrades, while for others, simply finding ways to streamline operations and save time helps their team do more with less.

To help find opportunities to manage costs, Constellation Navigator works to:

  • Automate data management and reporting and set up secure bill pay to help alleviate the amount of time your Accounts Payable team spends fulfilling routine tasks.
  • Strategize the priority and sequencing of on-site projects and equipment upgrades to help maximize the potential rebate or incentives offered by local utility programs.
  • Establish one continuous data ingestion process that can be shared across platforms so that your procurement team, Accounts Payable team, and sustainability team are all working from the same playbook.

By implementing Constellation Navigator’s cost optimization strategies, you can reduce operational expenses, maximize incentives, and streamline processes, allowing your business to focus its resources on growth and sustainability goals.

Let Constellation Navigator Optimize Your Sustainability Journey

You may face many challenges in shaping and measuring the effectiveness of your integrated energy strategies. Our dedicated Constellation Navigator team is committed to providing the clearest path for you to set and meet your environmental and operational goals, making it easier for you to achieve sustainability success.

Contact us today to start turning your challenges into opportunities and creating long-term sustainability success.

Contact Us

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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Alex Aguiar
Roadmap to Sustainability: Does Your Business Have a Plan in Place? https://blogs.constellation.com/roadmap-to-sustainability/roadmap-to-sustainability-does-your-business-have-a-plan-in-place/ Mon, 01 Apr 2024 14:00:05 +0000 https://blogs.constellation.com/?p=5937 According to a 2023 Bloomberg Intelligence study, seven in 10 executives in the United States view energy-transition efforts as a...

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6 min read

According to a 2023 Bloomberg Intelligence study, seven in 10 executives in the United States view energy-transition efforts as a competitive advantage and 75% say that failing to plan for the energy transition may expose them to revenue loss and activism1. In an effort to make strong sustainability statements, many companies are setting ambitious climate goals, such as Constellation’s commitment to achieve 100% carbon-free energy generation and 100% reduction in operational emissions by 20402.

While some businesses may have the resources onsite to plan for and integrate sustainable practices into their business strategies, others may need assistance from energy experts, such as Constellation, who can provide insights to customers about the emerging trends in sustainability and help them develop and implement an integrated strategy to meet short- or long-term goals.

What is a Sustainability Roadmap

A sustainability roadmap is a strategic plan that outlines a company’s goals and actions to become more sustainable over time. It typically involves a comprehensive assessment of a company’s current sustainability practices, identification of key sustainability issues and opportunities, and development of a plan to address those issues and opportunities.

To create a sustainability roadmap, a company may begin by conducting a sustainability audit or assessment, which involves evaluating the company’s current sustainability practices and identifying areas where improvements can be made. This may include assessing the company’s energy use, waste management, water use, supply chain practices, and other sustainability-related activities.

Once the assessment is complete, the company can use the information gathered to develop a sustainability roadmap that outlines specific goals and actions to improve its sustainability performance. This may involve setting targets for reducing energy use or greenhouse gas emissions, increasing the use of renewable energy sources, improving waste management practices, or implementing sustainable sourcing practices.

In addition to setting specific goals, a sustainability roadmap may also include a timeline for achieving those goals, as well as metrics for measuring progress along the way. It may also involve engaging stakeholders, including employees, customers, and suppliers, to ensure that sustainability is integrated throughout the organization.

Constellation can help build a customized roadmap that incorporates your goals and budgets. We can recommend a plan with a gradual transition from conventional to clean power supply with minimum risk in the desired timelines. The plan would include utilizing some of our diverse sustainability products along with a vast group of qualified channel partners with novel technologies.

Constellation Navigator, a division of Constellation, delivers customized paths and sustainable solutions for customers to set and meet their environmental and operational goals. Driven by advanced technology platforms and experienced advisors with decades of experience, it provides strategies to help organizations reduce their carbon footprints. By combining industry expertise with powerful data analytics, Constellation Navigator helps businesses solve challenges across the energy lifecycle including carbon accounting, sustainability advisory, utility bill management and rebate administration.

Once a sustainability plan is in place, the roadmap could help demonstrate the business’ commitment to sustainability.

A Sample Roadmap to Sustainability:

 

  1. Measure, Baseline and Goal Setting

The first step in your sustainability roadmap is to track GHG emissions and establish goals around Scope 1, 2 and 3 emissions.

  • Scope 1: Direct emissions created from fuel consumed onsite.
  • Scope 2: Indirect emissions associated with the purchase of electricity.
  • Scope 3: All other emissions, including both up and downstream.

There are various types of reduction targets; Absolute, Intensity, % Renewable or % Carbon-Free, Net Zero and Science-Based Targets are the most common.

In order to set these goals, you’ll need to understand your usage, carbon footprint and other key data about your facilities.

Carbon accounting and utility bill management platforms can help you proactively identify trends and manage costs in your energy, water, sewer, and diesel expenditures. Combining your utility bill data into an easy and accessible format that provides detailed reporting on your energy usage in one convenient view allows you to develop better and more comprehensive strategies to optimize spend. The platform also creates an all-encompassing utility expense profile from your bill data across all locations in one place, making payments and data easier to manage.

Once you have a better understanding of your facility usage and have begun to develop a sustainability strategy, a carbon accounting program allows you to develop a baseline of your carbon emissions, report it across multiple frameworks, and identify and prioritize carbon reduction or offset actions you can implement. Using this tool, you will be able to proactively measure your greenhouse gas emissions, visualize your carbon footprint, and track energy efficiency projects, RECs/EFECs purchases, offsite renewable procurement, or hourly carbon-free energy matching, which will help you meet your climate goals.

  1. Energy Efficiency Upgrades

The U.S. Department of Energy (DOE) identifies energy efficiency as one of the easiest and most cost-effective ways to combat the climate crisis, reduce consumer energy costs and improve U.S. business competitiveness. Constellation offers consultative based energy efficiency solutions structured around efficiency, sustainability and resiliency. Energy efficiency upgrades come in the form of infrastructure improvements, such as LED lighting and HVAC upgrades. Behind-the-meter efficiency projects can directly lower GHG emissions while reducing utility bills. Technology upgrades and infrastructure improvements with energy efficiency measures can provide customers more control of energy consumption and onsite resiliency while providing sustainability benefits at the same time. These projects can also produce benefits such as operations and maintenance (O&M) cost savings and immediate and future capital cost avoidance.

Our Energy Made Efficiency (EME) program, which requires no upfront capital, is one example of Constellation’s service offerings in this area. Under this program, customers can realize cost savings by reducing energy consumption (and consequently carbon emissions), and the charges for efficiency projects appear on your energy bill. Your organization can also benefit from various rebates and incentives available from utilities and other third parties for your energy efficiency projects. These projects encompass new construction, equipment replacement and retrofit endeavors.

  1. The Purchase of EFECs and RECs

EFECs represent the emission-free attributes of generating sources, as defined by PJM, that do not emit greenhouse gases, such as solar, wind, nuclear and hydropower. For example, when you purchase a Carbon-Free Electricity Plan from Constellation, the electricity you purchase will be matched with EFECs sourced primarily from carbon-free nuclear generation.

RECs, on the other hand, represent the emission-free attributes of one megawatt hour (MWh) of electricity generated by a renewable energy resource, such as wind or solar.

“While investing in RECs or EFECs comes with a small incremental cost, it creates the opportunity for a business to quickly indicate to its customers and shareholders that it has started the process toward achieving sustainable practices,” says Raj Bazaj, Constellation’s executive director of retail power sales.

  1. Procurement of Offsite Renewables

According to the Clean Energy Buyers Association, which tracks publicly announced clean energy purchases by commercial and industrial (C&I) customers, growth in renewable energy purchases has surged to nearly 17 GW in 2022 – growth of 27% from 2021 and 172% since 2018, when Constellation first started offering customers an offsite renewable product. Customers can achieve renewable goals and make a local offsite renewable energy purchase with a retail power supply contract through our Constellation Offsite Renewables (CORe) product. Our CORe and CORe+ solutions enable customers to either integrate renewable energy purchases from existing renewable generation, including solar and wind facilities, into a load-following energy supply or support the development of new renewable energy assets on their regional grid.

  1. Hourly Carbon-Free Energy Matching

Currently, most net zero clean energy supplies are accounted for by matching energy use with renewable and/or emission-free energy certificates on an annual basis, without considering where or when the energy was produced. Hourly carbon-free energy matching is an opportunity to pair your electricity use with a local emission-free energy source. Utilizing hour-by-hour regional tracking, Constellation’s hourly carbon-free energy matching is the most advanced, hourly-matching application of its kind, going beyond other net zero programs that aggregate clean energy megawatts over time, and giving customers clearer and more accurate data on their electricity consumption.

Take Action Now

 

 

When it comes to setting goals for energy sustainability activities, it is critical to find the right energy solutions provider to help you navigate what can sometimes be an overwhelming and seemingly complicated process—Constellation can help ensure your organization is implementing a robust plan while staying updated and adjusting as needed to the rapidly changing landscape of new products and technologies. Learn more about our energy solutions by visiting www.constellation.com.

 

Sources

  1. https://www.bloomberg.com/company/press/bioomberg-intelligence-survey-finds-investors-and-c-suite-embrace-esg-despite-concerns/
  2. https://www.constellationenergy.com/our-esg-principles/environment-and-sustainability/climate-commitment.html

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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Amanda Donohue
Managing Renewables Growth for a Clean Energy Future https://blogs.constellation.com/sustainability/managing-renewables-growth-for-a-clean-energy-future/ Fri, 29 Mar 2024 14:02:11 +0000 https://blogs.constellation.com/sustainability/sustainability-strategy-two-ways-to-reduce-carbon-impacts-of-natural-gas-2-copy/ Renewable energy growth in corporate and institutional procurement is accelerating at a rapid pace as corporations commit to aggressive sustainability...

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4 min read

Renewable energy growth in corporate and institutional procurement is accelerating at a rapid pace as corporations commit to aggressive sustainability goals. According to the Clean Energy Buyers Association, which tracks publicly announced clean energy purchases by commercial and industrial (C&I) customers, growth in renewable energy purchases has surged to nearly 17 GW in 2022 – growth of 27% from 2021 and 172% since 2018, when Constellation first started offering customers an offsite renewable product. This momentum poses capacity challenges, as well as big opportunities and potential to uplift utilities, corporations, the climate and entire economies. However, to realize the full potential of renewable energy, we need to ensure grid resilience and accessibility keep pace with the demand.

Why Grid Resilience is Critical

As climate change accelerates and more renewable energy is being developed, we need to modernize our grid infrastructure. Modernizing the grid requires major upgrades that support both the increase in renewable energy sources and the protection of our grid from storms, cyber threats and potential failures from aging infrastructure. These upgrades include adding transmission lines to connect renewable resources to population centers, as well as updating transformers and load balancing mechanisms. Upgrades like these are necessary for supporting distributed energy resources like rooftop solar and battery storage, which manage increasing energy flows. These upgrades are expensive and take time to implement. It is important that we continue to invest in our grid, or we risk system failure as clean energy increases instead of harnessing it to meet demand, decrease emissions, and combat climate change. Constellation offers efficiency solutions that enable businesses to modernize infrastructure to deliver positive operational, environmental and potential financial outcomes.

How Energy Demand Will Shape Renewable Growth

At the 28th annual United Nations climate meeting, leaders called to triple global renewable energy capacity by 2030. This demand for renewable energy will accelerate at a fast pace due to the demand of companies looking to meet their corporate commitments to cut emissions. Plus, electric vehicle sales will continue to put more pressure on the grid as demand to power more electric vehicles increases.

The number of customers choosing cleaner power is also rising. Large investors are dedicating more resources to renewable projects as there’s more emphasis on ESG metrics. Plus, policy support for decarbonization at the federal, state and local levels of government encourages more companies to operate more sustainably. This combination of factors is accelerating the economy-wide transition and demand for renewable resources.

Such a fast pace of change inevitably creates real capacity challenges. However, by working together, we can manage those challenges. The transition can be successful if we proactively invest in infrastructure upgrades, help pass policies that support sustainability, and innovate responsibly. The challenges are significant, but the opportunity is even greater. Constellation sees tremendous potential for renewable energy if we work collectively to implement solutions.

Constellation’s Solutions

Constellation is taking ambitious steps as a leader in the fight against the climate crisis by providing reliable and resilient energy for customers and uplifting the communities we serve. As renewable expansion escalates, we plan to responsibly keep up with the transition through our business-wide efforts and commitment to develop innovations that match energy demand and meet the future needs of the economy.

Some of our key initiatives helping advance clean energy include:

Supplying reliable clean energy

  • Generate energy from nuclear, hydro, solar and wind, providing about 10 percent of the nation’s carbon-free energy.
  • Produce clean, affordable hydrogen, essential to meeting the federal government’s goal of net zero carbon emissions by 2050.

Providing access to data and insights for customers

  • Offer analytics and technology products to help you get accurate data to build, implement and measure your energy and sustainability strategy.
  • Provide reporting tools to understand baseline energy usage and how energy efficiency upgrades reduce emissions.

Simplifying clean energy procurement

  • Simplify purchasing through aggregated vPPAs, renewable energy certificates, and emission-free energy certificates (EFECs).

Implementing customized energy solutions

  • Install onsite solar energy systems to meet customer sustainability commitments.
  • Make efficiency improvements and help our customers develop and implement demand management strategies.

Advising the clean energy journey

  • Guide customers with energy professionals who create customized sustainability roadmaps to help businesses meet carbon reduction goals.
  • Deliver customized energy management services and solutions to help commercial, industrial and residential customers successfully navigate the evolving landscape.

Constellation is Committed to Clean Energy Solutions

Constellation takes an active role in conferences focused on the renewable transition, recently participating in a panel session on challenges and opportunities in renewable energy procurement, as covered in this GreenBiz article. Executive Director of Renewables Origination, Ben Chadwick, brought Constellation’s experience to the discussion, covering innovative programs like our CORe offering. Chadwick touched on both the challenges and the incredible potential this transformation will bring. By participating in panels like this one, our experts are able to help educate the public while sharing vital insights and discuss solutions that could help responsibly shape the future of renewables.

Contact Constellation today to learn more about how we can help your business achieve its renewable energy and sustainability objectives through customized solutions managed by our experienced energy experts.

Contact Us

 

Sources:

Renewable energy: Global capacity increased by 50% in 2023 | World Economic Forum (weforum.org)

Constellation-2023-Sustainability-Report.pdf

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Managing Renewables Growth for a Clean Energy Future appeared first on Constellation's Energy4Business Blog.

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Amanda Donohue
Webinar Analysts: Summer Outlook, Gas Storage Highs, and Future Load Growth https://blogs.constellation.com/energy-management/webinar-analysts-summer-outlook-gas-storage-highs-and-future-load-growth/ Thu, 28 Mar 2024 12:40:36 +0000 https://blogs.constellation.com/energy-management/webinar-analysts-two-weeks-of-winter-copy/ During the March Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting...

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3 min read

During the March Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the El Niño weather pattern and its implications for the spring and summer outlook, updates on the state of the economy and the Federal Reserve’s interest rate policy, analysis of the natural gas production and storage situation and examination of electric demand growth and changes in the generation mix.

Weather Update

Chief Meteorologist Dave Ryan recapped the warmest ever winter in the U.S. and his expectations for the coming seasons. Ryan anticipates milder spring weather, with below-normal temperatures in the South and above-normal temperatures in the North. However, he expects a hot summer for most of the U.S., especially the Midwest and East, potentially ranking among the top 10 summers in terms of cooling degree days. Additionally, the webinar covered drought outlooks in the West and provided an update on the California water season.

All Things Economic

Chief Economist Ed Fortunato provided an update highlighting the Federal Reserve’s interest rate policy. Despite keeping rates unchanged, the Fed signaled possible cuts later in the year. The Federal Open Market Committee left the interest rates unchanged at 4.5% but indicated potential future cuts if inflation approaches 2%. The Fed also plans to continue its quantitative tightening program to reduce its balance sheet. The stock market responded positively to the Fed’s statement, showing resilience against higher-for-longer interest rates.

Natural Gas Fundamentals

The panel of energy fundamentals experts discussed the decline in production due to low prices. Producers have cut three to four Bcf/d in the past month, leading to stabilization in prices. However, questions remain about the stability of these cuts and their impact on market balance in the second half of the year. Additionally, the market is looking for evidence that the cuts will hold or that producers may have to cut production further. Natural gas storage remains bearish, well above last year and the five-year averages due to the warm winter.

Electricity Market Growth

Moving to electricity fundamentals, the webinar highlighted a surge in electric demand from data centers, manufacturing, and plug-in vehicles. This uptick could add the equivalent of California’s entire electricity consumption to the national grid by 2028. The team analyzed this growing demand and discussed the required supply needed to meet the demand.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, May 8th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy prices such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: Summer Outlook, Gas Storage Highs, and Future Load Growth appeared first on Constellation's Energy4Business Blog.

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Alex Aguiar
Webinar Analysts: Two Weeks of Winter https://blogs.constellation.com/energy-management/webinar-analysts-two-weeks-of-winter/ Thu, 29 Feb 2024 21:28:50 +0000 https://blogs.constellation.com/energy-management/webinar-analysts-game-on-then-off-copy/ During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) covered the trend towards the warmest U.S. winter...

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3 min read

During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) covered the trend towards the warmest U.S. winter on record since 1950, key economic insights, an update on natural gas production and storage, and potential long-term impacts of the recent LNG moratorium.

Weather Update

Chief Meteorologist Dave Ryan kicked off the webinar by discussing the winter that never was. The winter of 2023-2024 is trending to be the warmest on record in the U.S. with very low heating demand and high gas storage levels. The outlook for March and April remains mild with El Niño conditions weakening. The team also covered the drought outlook in the Western and Midwest states.

All Things Economic

Chief Economist Ed Fortunato looked at the current state of the economy, which is strong and resilient, with low unemployment, moderate inflation and steady growth. The Fed is expected to cut rates two or three times before the election, but the impact on the energy markets is likely to be limited. The economy continues to shrug off higher-for-longer interest rates. The Fed is trying to walk a fine line between rate cuts supercharging the economy leading to inflation and holding rates steady potentially sparking a recession.

Natural Gas Fundamentals

U.S. natural gas production reached a record high of 105 BCF per day in January 2024, despite low prices and reduced rig counts. The producers have achieved significant efficiency gains and cost reductions, and some have hedged their output at higher prices. The market is looking for signs of production decline or slowdown to balance the supply and demand. The power markets in the U.S. are also influenced by the gas dynamics as well as the growth of renewable and distributed energy resources.

Regional Market Updates

The team offered some insights into the 2025/26 PJM Base Residual Auction, which is likely to be held in July of this year. Rule changes by the FERC are intended to bolster reliability and ensure units that clear the auction can perform.

The New England capacity markets are undergoing some changes and challenges, as they try to value the reliability and performance of different types of generation.

LNG Export Moratorium

U.S. LNG exports have been increasing and diversifying, but they face some uncertainties and risks due to the potential moratorium imposed by the DOE on new export licenses for facilities that do not currently hold permits from the DOE. The team broke down the short- and long-term impacts of this moratorium, as projects unaffected by the moratorium continue the current narrative of “U.S. LNG exports to double by 2028-29”.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, March 20th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy prices such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: Two Weeks of Winter appeared first on Constellation's Energy4Business Blog.

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Amanda Donohue
Sustainable Procurement Strategies with Renewable Natural Gas https://blogs.constellation.com/sustainability/sustainability-strategy-two-ways-to-reduce-carbon-impacts-of-natural-gas-2/ Mon, 19 Feb 2024 14:45:40 +0000 https://blogs.constellation.com/roadmap-to-sustainability/sustainability-strategy-two-ways-to-reduce-carbon-impacts-of-natural-gas-copy/ As more businesses are looking to decarbonize their energy supply and implement sustainable operations, many are targeting a reduction in...

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3 min read

As more businesses are looking to decarbonize their energy supply and implement sustainable operations, many are targeting a reduction in carbon emissions associated with natural gas use. With a strategic approach to natural gas procurement, businesses can build a customized plan to understand their operational footprint and achieve long-term sustainability goals. One strategic option is to consider incorporating Renewable Natural Gas (RNG) into a natural gas procurement strategy.

What is Renewable Natural Gas?

RNG is physical pipeline-quality natural gas derived from the decomposition of organic matter plus associated environmental attributes. It begins as raw biogas which is then purified to meet applicable pressure, quality and heat content requirements before being injected into a pipeline, like regular natural gas. Biogas can be produced by municipal solid waste landfills, wastewater treatment plant digesters, livestock farms, food production facilities, and organic waste management operations.

The environmental impact of RNG

RNG projects capture and recover methane from landfills or anaerobic digestion (AD) plants. Because methane has a global warming potential more than 25 times that of CO2, and a relatively short (12-year) atmospheric life, capturing and utilizing these emissions can have a near-term beneficial impact on global climate change mitigation, compared to continued use of conventional, fossil-derived natural gas.

Regarding transportation emissions, replacing traditional diesel or gasoline engines with natural gas vehicles that utilize RNG can also significantly contribute to the reduction of nitrogen oxide and particulate matter emissions, resulting in improved local air quality.

Ultimately, replacing fossil fuels with RNG can contribute to lower CO2 emissions on a lifecycle basis. Compared with natural gas used as a transportation fuel in vehicles, the use of RNG can lower emissions by 40 percent .1 In addition, when used to power vehicles, RNG can reduce greenhouse gas (GHG) emissions by up to 91 percent relative to gasoline produced from petroleum.2

How RNG impacts your business

The environmental attributes associated with RNG, which include reduced carbon emissions as compared to fossil-derived natural gas, can be paired with end-users’ natural gas consumption to allow end-users to make renewable energy claims associated with natural gas use. Specific sustainability claims and emission reduction levels will depend upon the specific end-use of the  natural gas and the chosen GHG emission reporting standards. A business’s purchase of RNG attributes may also reduce Scope 1 carbon emissions replaced by biogenic sources, without the need to modify existing infrastructure.

Additionally, businesses can leverage Renewable Energy Certificates (RECs) for RNG paired with natural gas power generation and renewable fuel credits (such as Renewable Identification Numbers (RINs) in the federal Renewable Fuel Standard and Low Carbon Fuel Standard Credits (LCFS Credits) in California’s state level Low Carbon Fuel Standard.

By using sustainable natural gas strategies, businesses can demonstrate to their customers, investors, and employees that they are doing their part to create a cleaner world by reducing their GHG emissions. Constellation is an active participant in the RNG market and can help you to leverage relationships with energy procurement companies to develop your RNG strategy.

Contact Us

 

  1. https://www.tandfonline.com/doi/full/10.1080/10934529.2018.1459076
  2. https://www.eesi.org/papers/view/fact-sheet-biogasconverting-waste-to-energy

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Sustainable Procurement Strategies with Renewable Natural Gas appeared first on Constellation's Energy4Business Blog.

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Amanda Donohue
Understanding Electricity Transmission https://blogs.constellation.com/energy-management/understanding-electricity-transmission/ Mon, 12 Feb 2024 14:24:19 +0000 https://blogs.constellation.com/energy-management/understanding-electricity-choice-for-business-copy/ Transmission Rates and Costs In competitive electricity markets, the final price businesses pay for power includes more than just the...

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3 min read

Transmission Rates and Costs

In competitive electricity markets, the final price businesses pay for power includes more than just the cost of energy generation. Transmission and distribution costs can make up a significant portion of the final electricity bill. In this Electricity 101 series, we’re breaking down key aspects of purchasing power. This includes transmission: what it is, how rates and costs are determined, and options for business customers in deregulated markets.

What is Electricity Transmission?

Transmission refers to the high-voltage bulk transfer of electrical power from generating power plants to electrical substations near demand centers. The U.S. electric transmission system consists of over 200,000 miles of high-voltage transmission lines and towers that deliver electricity nearly instantaneously across regions. These transmission lines, when interconnected with each other, form regional networks referred to as “power grids” or simply “the grid.”

The transmission grid is different from local power distribution, which refers to the lower voltage wiring from high-voltage substations to customers. Transmission infrastructure may be owned, operated and maintained by electric utilities or independent transmission owners. Regional transmission organizations like PJM in the Midwest/Mid-Atlantic, California ISO, New York ISO and Electric Reliability Council of Texas (ERCOT) coordinate operations and pricing across multiple states.

Transmission pricing varies across different regions of the U.S. power grid. To manage grid traffic, standardize access, ensure reliability, and control management across the regions, the Federal Energy Regulatory Commission (FERC) helped set up nonprofit Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) beginning in the late 1990s. While RTOs span larger multi-state areas, ISOs tend to serve individual states.

How are Transmission Rates and Costs Set?

Within RTO and ISO territories, transmission line owners can make returns on their infrastructure investments through rates and annual charges to power suppliers and consumers based on budgeting methods. These charges proposed by the transmission owners must be approved by the FERC to ensure fair competition and reasonable rates.

While the exact charges and rate structures vary by RTO and ISO across regions, common costs include infrastructure investment cost recovery, new project development costs, reliability service fees and grid loss charges. Driven by aging infrastructure, new generation and changing demand, transmission rates within most U.S. RTO and ISO regions have steadily risen.

How are Transmission Costs Calculated?

For business customers, transmission costs are typically demand-based charges influenced by their peak usage. Regional transmission operators track the capacity each business requires using metrics like the billing demand.

If a customer has a fixed-rate electricity supply contract per MWh, the formula for estimating monthly transmission costs bases the rates on the business’ peak demand allotment, applicable regional rates, and days in the billing cycle. This total cost is then divided by estimated total energy usage to incorporate into the per MWh unit price. This final calculation ties transmission costs to peak capacity demand.

Transmission Management Options for Businesses

In deregulated electricity markets, businesses have more options to control transmission costs and risk exposure.

Major types of transmission rate products include:

Fixed Transmission – Locks in the transmission price for the contract term, maximizing budget certainty with the lowest amount of risk.

Transmission Price Adjust – Transmission prices are fixed at the time of contract, but subsequent incremental changes from the grid operator are passed through based on capacity volume (typically updated annually). This could result in a credit or an additional charge.

Transmission Cost Adjust – Transmission prices are fixed at the time of contract, but any incremental changes to your usage volumes and monthly demand charges are passed through at the transmission rate at the time they are adjusted (typically updated annually). This could result in a credit or an additional charge.

Pass-Through Rate – Businesses pay their actual transmission costs based on usage and changing rates published by the grid operator. They are billed for precise costs – no more and no less – which provides flexibility but less predictable bills.

As transmission operators adjust underlying rates, costs can fluctuate for businesses using variable rate options, even with consistent or decreasing electricity usage. Likewise, changes in a business’ peak demand could alter transmission costs for non-fixed rate structures. Monitoring these potential demand charge and rate change impacts is essential for transmission cost management with adjustable plans.

Work with Constellation Energy Experts

Navigating market changes and evaluating their impacts can be challenging for organizations. With decades of electricity market experience, Constellation’s energy experts can help determine the optimal transmission management strategies for your business based on financial goals, capacity needs, risk tolerance, and other individual priorities. Contact us today to learn how Constellation can simplify transmission purchasing for your business.

 

Contact Us

 

  1. https://www.eia.gov/electricity/gridmanager/transmission.html
  2. https://etraining.org/courses/electricity-markets

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Understanding Electricity Transmission appeared first on Constellation's Energy4Business Blog.

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Alex Aguiar
Understanding Electricity Choice for Businesses https://blogs.constellation.com/energy-management/understanding-electricity-choice-for-business/ Tue, 30 Jan 2024 14:13:44 +0000 https://blogs.constellation.com/energy-management/webinar-analysts-game-on-then-off-copy/ In regulated electricity markets, business customers must purchase electricity from their designated utility provider at rates set by the public...

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3 min read

In regulated electricity markets, business customers must purchase electricity from their designated utility provider at rates set by the public utilities commission. However, the deregulation of energy markets in many states introduces valuable options along with complex decisions for business customers. In the first post in this ‘Fundamentals of Electricity Choice’ series, Constellation will explain key aspects of electricity choice to help businesses make informed energy decisions.

Electricity choice allows businesses to shop for competitive electricity plans from retail providers and choose the optimal plan to meet their unique needs. While business customers can select their electricity provider in deregulated markets, the physical transmission and distribution of electricity is still managed regionally by local utilities and grid operators to ensure reliable delivery of power.

Competitive electricity markets give businesses more options and greater control. Providers compete on rates, contract terms, customer service and features. Businesses can evaluate plans based on their unique budget goals, risk tolerance and energy usage patterns.

Key Differences:

  • Regulated markets: Rates and providers are dictated by the utilities commission. Customers bear the financial risks of utility infrastructure investments.
  • Competitive markets: Businesses can choose plans from various providers and plans based on their needs, budget and risk preferences.

As a business customer, understanding the key aspects of retail electricity choice will help navigate through electricity plan selection in a competitive market.

Choosing an Electricity Plan

With electricity choice, customers can shop for electricity plans from retail providers and select the best choice based on their needs instead of taking a one-size-fits-all approach. Important considerations when choosing a plan include the budget, risk tolerance, and energy usage patterns of each business. Businesses should make sure to compare all costs, not just per kWh rates.

For a business to identify the optimal plan, it must weigh many complex variables. Working with an experienced electricity advisor can help evaluate the right plan for each business’ unique needs and objectives. Businesses should start by evaluating the main types of electricity plans available to decide the best fit.

It is important for businesses to consider budget, risk tolerance, usage patterns, contract terms, renewal options and renewable energy additions.

Types of Electricity Plans

Fixed Rate

  • Fixed rate plans allow customers to lock in a set price per kWh for the entire contract term, typically 1-5 years. This provides maximum budget certainty but less flexibility.
  • If market prices fall below the fixed rate, you will pay more than the current market price because your price remains unchanged regardless of market fluctuations.

Index Rate

  • Index plans tie the price per kWh to market conditions like electricity demand, fuel costs and weather. Rates fluctuate based on underlying indexes.
  • Index rates can allow customers to take advantage of lower prices when market prices fall. However, they also expose customers to higher bills during extreme weather events or peak demand times when prices spike.
  • Index rates provide less budget certainty due to variable pricing that changes based on market conditions.

Managed Rate

  • Managed electricity plans blend fixed and index rate components to balance budget stability and market exposure.
  • For example, you could lock in a portion of your usage at a fixed rate and pay an index rate beyond that base amount. This allows you to benefit from market opportunities while still having some price certainty.
  • Managed plans offer more flexibility to optimize costs than locking in a fixed rate, but less certainty than a pure fixed rate.
  • Managed plans may provide less exposure to extreme index price events than a pure index plan.

Developing a Customized Electricity Purchasing Strategy

Working with a trusted provider like Constellation allows business customers to embrace a purchasing strategy tailored to their unique usage profiles, risk tolerance and budget goals. This may involve incorporating a mix of plan types and optimally timing fixed price purchases.

Rather than settling for a generic one-size-fits-all electricity plan, businesses can take control of their power purchases with a strategic, specialized approach.

Choosing a Retail Electric Provider

When making an electricity choice, evaluating and selecting a provider is one of the most important decisions for your business. Navigating the options and identifying the ideal provider to meet a business’s current and future needs requires consideration of several key factors, including:

  • Strong reputation and years in business
  • Flexible plan options to meet your business needs
  • Transparent, easy-to-understand pricing
  • Strong customer service and support
  • Tools and resources to make informed decisions

With these criteria in mind, Constellation can be an invaluable resource to help your business successfully navigate electricity choice.

Let Constellation Simplify Electricity Buying

With over 20 years of expertise in energy markets, Constellation has the experience and energy specialists to simplify electricity choice for your business. We can eliminate the complexities of purchasing power by customizing a strategy tailored to your budget, risk tolerance, energy needs and sustainability goals. Our flexible plan options, clear pricing and exceptional customer service provide the support businesses need to confidently navigate the energy market.

Contact Constellation today to learn more about how we can help your organization optimize costs, minimize risks, and meet your power supply objectives.

Contact Us

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Understanding Electricity Choice for Businesses appeared first on Constellation's Energy4Business Blog.

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Alex Aguiar
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