Why Are Energy Prices So Low?

May 12, 2016 Allison Schweizer

Why Are Energy Prices So Low?

The current price of energy is low and there are many reasons why. To start: Changes in the generation mix — less coal, more natural gas and renewables — increase the availability and security of supply, causing prices to drop. Mix that with low crude oil costs and the energy market is as stable as ever.

And that’s good news because the savings created by affordable energy has given companies an opportunity to explore alternative strategies to help ensure long-term reliability, particularly renewables and microgrids. The focus has shifted from where energy will come from to what form it will take.

Companies should expect that prices will eventually track upward, but at a moderate grade. It’s important note, however, that despite depressed commodity prices, non-commodity charges are already forcing utility bills upward. The net is that the energy costs will rise and fall, but right now is one of the best times to think beyond traditional energy procurement, and develop a holistic, strategic program that also incorporates efficiency and sustainability.

Learn from our experts on why energy prices are so low, how it’s affecting the market and, most importantly, what it means for business.

The post Why Are Energy Prices So Low? appeared first on Schneider Electric.

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