Rising electricity prices: how to cope with them?
The rise in electricity prices poses a major challenge for industrial companies in 2023. Indeed, energy costs have seen a significant increase in recent years, with a considerable impact on companies’ budgets and revenues. Faced with this reality, it is essential to find solutions to mitigate the impact of this price increase and maintain the competitiveness of industries.
According to various surveys conducted by major players in the energy sector such as the Energy Regulatory Commission (CRE), Statista, the French Union of Electricity and the Court of Auditors (1), it is expected that the price of electricity will continue to rise in the coming years. These studies provide us with clear indications of this trend. According to a study conducted in 2020 by Statista and the General Commission for Sustainable Development (CGDD) of the Ministry of the Environment, Energy and the Sea, the final price of electricity is expected to reach 128.3 euros per megawatt-hour by 2030.(2)
These figures highlight the importance of taking measures to address this increase and mitigate its impact on companies, especially those operating in the industrial sector.
I. Understanding the reasons behind the increase in electricity prices
The increase in electricity prices is a reality that directly affects you, and it is essential to understand the factors contributing to this rise in tariffs in order to better grasp the situation and find appropriate solutions.
Here are some of the main reasons for this increase:
Global electricity demand continues to rise due to economic expansion, urbanization, and changing lifestyles. This increase in demand puts pressure on production and distribution infrastructure, resulting in additional costs for electricity providers.
Furthermore, the prices of raw materials used in electricity production, such as natural gas, coal, and oil, can be volatile. Energy market fluctuations can lead to significant variations in production costs.
The nuclear sector is one of the factors behind the electricity price increase. One reason is that the cost of the nuclear sector in France would be higher than initial estimates and will need to be reassessed. Additionally, the investments required to extend the lifespan of nuclear power plants and develop renewable energies will inevitably impact the electricity bill.
Another possible explanation for the rise in electricity prices is the restructuring of the electricity market, according to projections from the Energy Regulatory Commission (CRE). This restructuring may lead to increased tax rates for many consumers.
II. Optimizing energy consumption
Energy consumption optimization is an essential step to mitigate the impact of rising electricity prices. By adopting effective strategies, you can reduce your electricity dependency, lower your energy costs, and enhance your competitiveness in the market.
Here are some strategies to reduce your electricity consumption within your industry:
Energy Management: Implement a rigorous energy management system. This involves monitoring and analyzing electricity consumption data, identifying areas of waste, and setting consumption reduction targets. Discover MyDametis, our software that allows you to take control of your energy consumption!
Energy Audit: Conducting an energy audit will help you identify major consumption areas and pinpoint energy-saving opportunities. The energy audit can be done internally or by engaging external experts like Dametis. We will provide you with specific recommendations to improve the energy efficiency of your industry. Start with an energy audit and appoint a dedicated industry expert consultant to support you in the short or long term.
Awareness and Training: Involving your employees in the energy consumption optimization process is crucial. Organizing awareness and training sessions helps promote good energy practices and encourage responsible behaviors within your industry. Explore Dametis Academy, our training center that educates industrial professionals on the best environmental performance practices.
By implementing these energy efficiency measures, you can significantly reduce your electricity consumption and achieve substantial savings on your energy costs.
III. Diversifying energy sources
Faced with the rising electricity prices, it is essential for you, industrialists, to diversify your energy sources.
Renewable energies, such as solar, wind, hydropower, and biomass energy, offer a promising solution as they are inexhaustible and produce fewer greenhouse gas emissions. Investing in renewable energy production facilities allows you to generate your own electricity.
In addition to the environmental benefits, renewable energies can also offer significant economic advantages. The costs of electricity production from renewable sources have decreased significantly in recent years, making these technologies increasingly competitive compared to conventional sources. By investing in renewable energies, you can achieve long-term savings on your electricity bills.
By diversifying your energy sources towards renewable energies, you can reduce your exposure to electricity price fluctuations. It is a strategic decision that offers economic and environmental benefits, as well as greater energy independence.
IV. Engage Employees
Employee engagement is crucial to successfully reducing your electricity consumption.
By raising awareness and mobilizing your team, you can encourage active participation that will contribute to your organization’s energy efficiency.
Here are some ideas to involve your employees in this process:
Organize regular awareness sessions to inform your employees about the importance of reducing electricity consumption and the resulting benefits. Explain the environmental and economic impacts, as well as your company’s sustainability goals. Help them understand that they play an essential role in the success of these efforts.
Provide clear and practical information on good energy practices. Explain how they can contribute to reducing electricity consumption in their work environment, for example by turning off unnecessary lights or optimizing the use of heating, ventilation, and air conditioning systems.
Encourage your employees to actively engage in reducing electricity consumption by offering them opportunities to contribute. For instance, you can implement an energy-saving suggestion program where employees are encouraged to propose innovative ideas to reduce electrical consumption in their area of activity.
Ensure that your employees receive training on effective energy practices: Turn to the Dametis Academy to train your employees in the best energy performance practices.
Your employees’ contribution is valuable in achieving your goals of reducing electricity consumption and managing energy costs.
[2] https://fr.statista.com/statistics/666336/electricity-price-forecast-france/
