Energy Risk Management Consultants Energy Risk Management

Financial risk is a key element of energy management: Electricity and gas prices are constantly changing, and this affects the operating expenses of companies. Some business models tolerate volatile energy costs, but there are also companies who require predictability and certainty. Depending on the risk profile of each company, the optimal combination of energy sources can vary.

For example, one company may tolerate indexed energy prices that change each month, if that leads to lower average costs. Another company who operates with tight margins might prefer a long-term energy contract with fixed prices, even if that means paying tariffs above the market rate during certain months. Our partner, ProStar Energy Solutions can identify the most suitable energy plan for your company, based on its operating needs and risk tolerance.

Financial risk management also comes into play for building owners who are considering an onsite generation system. Companies who generate their own electricity can often achieve more predictable costs, but this involves an upfront investment. 

If a company will move to another building in the short term, they must be aware that relocating a generation system is a complex and expensive project. Commercial PACE financing can be an attractive option in this case, since the loan is bound to the property and not the owner. An onsite generation system can be easily transferred to another occupant, along with the remaining loan balance.

Contact us about your project.