Dynamic energy prices explained: how companies use them wisely
Dynamic energy prices may sound exciting, but for many companies they are the way to deal with energy in a smarter and cheaper way. In a time when energy costs can rise considerably, it is logical that entrepreneurs are looking for more control over their consumption and their invoice. Dynamic tariffs offer that possibility – as long as you know how to use them properly.
In this blog we explain what dynamic energy pricing exactly is, why it is becoming increasingly popular and how companies can benefit from it in practice.
With dynamic energy prices, the electricity price changes every hour (sometimes even every quarter), depending on supply and demand on the energy market. At times when there is a lot of solar or wind energy available, the price drops. When demand is high and supply is low, the price rises.
This works differently than with fixed or variable rates, where the price is only adjusted occasionally. With a dynamic contract you always pay the current purchase price - directly from the energy market.
Those who can plan their consumption smartly can save a lot. Think of production or charging at times when electricity is cheap.
You pay what the electricity actually costs at that moment – without any mark-ups or margins from the supplier.
By consuming when a lot of sustainable energy is available, you contribute to a more stable energy grid and lower CO₂ emissions.
More and more entrepreneurs are aligning their processes with the current electricity price. A few examples:
- Manufacturing companies are moving energy-intensive work to the night, when electricity is cheaper.
- Logistics hubs consciously charge their electric vehicles during low rate hours.
- Cold stores 'pre-cool' during cheaper hours and switch off temporarily when prices rise.
- Offices control their heating or air conditioning intelligently via energy management systems that take electricity prices into account.
The price difference between peak and off-peak hours can amount to tens of cents per kWh. In the case of large consumption, the savings are therefore considerable.
Dynamic energy prices are particularly suitable for companies that:
- have a high or flexible power consumption,
- want insight into their energy consumption,
- be prepared to actively manage costs and sustainability,
- and have a smart meter (a requirement for dynamic contracts).
- Map your energy consumption – know when you use the most and whether this can be shifted.
- Choose a supplier with dynamic rates – such as Holland Energie.
- Use smart tools or apps to track price peaks and troughs.
- Start small – for example with one location, process or machine.
Curious whether dynamic energy prices are something for your company? Feel free to contact Holland Energie for a free analysis. We are happy to look together at the best solution for your situation.
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