There really is good news in energy right now

Mar 4

Here is a copy of the Megawatt Hour’s recent update.

March 3, 2020

Dear Colleague, 

We realize that it is difficult to find good news out there right now. From fears about a global economic downturn, the coronavirus, the visible impacts of climate change, divisiveness around the world, it is easy to feel a bit hopeless. On the contrary, for energy buyers and financial decision makers there is some good news out there.

Energy markets are continuing to reach new lows. Sometimes it seems unbelievable, as if we’ve been saying this for the past 5 years, but it’s true. This may not be great news for the global economy, but it is helpful to energy buyers and consumers. 

Energy markets are low

Forward power markets are low. In fact, the next two years (2020 and 2021) of forward curves are at historic lows. Forward prices jump up in 2023 and 2024. Index (day ahead) energy prices are also low. Note that one slight offset to the low forward curves is an increase in capacity costs, particularly in NY City. Take a look at today’s Energy Market update. 

Cornell is moving beyond coal

NYC (Zone J) forward curves as of March 2, 2020

Index prices for NY State for 2019
(Source: NYISO)

Forward energy markets are at historic lows

Why focus on forward markets? 

Forward curves and the insight they can provide should be an essential decision making tool to any energy manager. Unfortunately, due to the opacity of energy markets and the energy industry, decision makers rarely have access to their own set of pricing and energy cost data. Learn more about why forward curves are an essential tool for every energy manager.

Take a look at how a pricing model provides you with valuable insights

What else can energy market insights do for you? 

At MWh, we take market insights a step further by providing customers with your own energy costing model. A pricing model (or energy cost model) is an essential tool for energy cost managers navigating markets today. With a pricing model, you can more accurately plan and manage your budgets and costs. Without it, you’re flying blind. You need access to a forecast of supply and delivery costs to plan and manage your business. Don’t settle for less. In this article, we explore the top 3 reasons a pricing model is essential to business planning.

Energy Decision Maker Thomas Mort: “Resource According to Value

“Resource according to Value. Energy projects need resources and support if they are going to make a difference.” – Thomas Mort

Read our interview with the amazing Thomas Mort. Thomas is a leader in the field of operational excellence and continuous improvement with more than 30 years’ experience. Thomas leads a team of experts matching “best available energy technologies” to cost-conscious facilities. One of Thomas’ skills is breaking down project barriers and turning projects into cost effective opportunities. He has a fascinating background that will inspire energy professionals working in every industry sector. 

In the past few months, we have had many questions from customers and colleagues about NYC’s Buildings Emissions Law (LL97). In keeping with our commitment to transparency, we have created a series of articles that shed light on the law: what does the law attempt to do, what is your exposure, how can you best navigate the requirements of the law? This article is the first in a 3-part series that will answer some of the questions that arise : (i) what information do I need to have ready for LL97? (ii) how do I calculate my exposure? (iii) how much does it cost for me to comply?

Take care. Keep calm and let us know how we can help.

Cheers,

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