Lue uusimmat blogikirjoituksemme.

All articles

What prevents industry from fully exploiting the opportunities of the energy revolution?

The energy transition, a revolution, is shaping the electricity market at a frantic pace. The game's rules are changing, and new resources, marketplaces, services, and actors exist.

In the past, electricity producers anticipated electricity demand and price levels based on their solid experience and planned electricity production accordingly. This is changing and has already changed. The electricity supply from renewable sources varies regardless of demand, increasing price volatility in the electricity market. Price spikes tend to pass through the entire electricity supply chain over time, which is apt to encourage end users to plan their consumption. With more adaptively planned consumption, factories can significantly reduce the average price of purchased electricity already - and this development is getting stronger. 

Participation in the balancing power and reserve markets has gradually increased. The opportunities for participation will improve as the methods of adjusting electricity consumption develop and become commonplace. Despite the opportunities created by the operating environment, enthusiasm for using the available technology has been weak. As an actor who designs and produces these services for the industry, we are amazed by this silence. Under the prevailing trend, we inquired about the reason for braking from a well-known artificial intelligence application and received the following answer:

The industry has been slow to participate in electricity marketplaces for several reasons:

  1. Lack of Awareness: Some energy-intensive companies may not know the benefits of participating in energy marketplaces or have the expertise to navigate complex energy markets.
  2. Cost and Complexity: Participating in energy marketplaces can require significant investments in technology, infrastructure, and personnel. For some companies, the costs and complexities of participation may outweigh the potential benefits.
  3. Regulatory and Policy Barriers: Some energy-intensive companies may face regulatory or policy barriers that limit their ability to participate in energy marketplaces. For example, some jurisdictions may restrict how much energy companies can sell back to the grid or may not allow certain types of energy generation or storage.
  4. Lack of Flexibility: Energy-intensive industries such as pulp and paper, mining, or steelmaking require a constant and stable energy supply. Some companies may be hesitant to participate in energy marketplaces due to concerns that fluctuations in the energy supply could disrupt their operations.
  5. Risk Aversion: The energy-intensive industry is typically risk-averse, with many companies preferring to rely on established business practices rather than taking risks in untested markets.

The answer we received didn’t entirely convince us. We believe that the points listed are mostly excuses and myths. We want to challenge all actors who recognize the topic as their own to a myth-busting event. Electricity marketplaces offer new revenue streams, improved energy management, and the ability to lower costs. By collaborating with service providers, participating in new marketplaces, and implementing new energy management strategies, the electricity-using industry can improve its success in a changing environment.

Benefit from the energy transition!

Syncron Tech
Syncron Tech
Syncron Tech toimittaa teollisuuden ja energiatoimialan tuotannonhallinnan ohjelmistoratkaisuja pilvipalveluna ja järjestelmätoimituksina.

You could be interested about these

Vaasa EnergyWeek 2024 March 11-14

Vaasa EnergyWeek is one of the key energy industry events in the Nordics, bringing together energy industry professionals from several different countries to exchange the latest insights, get inspired, and build valuable connections. This year's event will be held on March 11-14 at Vaasa City Hall. Each day of the event has its own focus: Energy & Climate, Wind & Renewable Energy, Energy Storage and Gas Energy. The event's exhibitors change according to the day's theme, and this year's themes include batteries and storage, circular economy, future smart cities, digitalization, energy sector regulation, as well as business and innovations. There will also be seminars and opportunities for networking. Syncron Tech will be there every day of the event - Welcome to visit our booth B9! See you at the event!

Renewable energy for the reserve market - 5 tips for those considering it

Participating in the electricity reserve market can be beneficial for renewable energy power plants that produce a lot of electricity, as it provides an opportunity to support the electricity grid and be compensated for providing the reserve. With the help of the reserve market, you can diversify the earning models of the production unit and make more versatile use of the investment. In this blog, I discuss a little about how renewable energy sites and electricity storages can be utilized in accordance with the latest technologies and how to get familiar with the matter.

Teknologia 23 event - Industrial innovations and future technology

Teknologia 23 is the leading industrial event in the Nordic countries, which presents the latest innovations in intelligent and sustainable industrial technology, covering a wide range from industrial process automation and digitalization to maintenance and energy solutions. The event will be held on November 7-9, 2023 at Helsinki Expo and Convention Centre, and Syncron Tech will be present throughout the event.