You’re probably paying a lot more than you should to power your company’s operations, even if you don’t realize it. And it’s about to get worse.
The Energy Information Administration's short-term outlook forecasts that wholesale power prices will rise about 7% in most U.S. regions in 2025, mostly due to higher natural gas costs, which are expected to increase 24%. In some regions, including California and the Southwest, the increase in wholesale power prices is expected to be even higher, as much as 35%.
While many factors impact your utility bill, energy digitalization can help to rebalance the power in your favor. Incorporating digital technologies like grid monitoring, data and analytics, and distributed energy resources make it easier to control your power supply and give you alternatives to public utilities when prices are high.
In addition to rising natural gas prices, increased demand for electricity, especially during extreme weather conditions, can strain the grid and elevate prices. Infrastructure maintenance and upgrades also contribute to higher costs, as utilities invest in modernizing the grid to ensure reliability. For businesses, understanding the breakdown of their electricity bills is crucial.
These bills typically consist of delivery charges—costs associated with transmitting electricity to the facility—and supply charges, which cover the actual energy consumed. Delivery charges often include demand charges, billed based on the peak power usage during a billing cycle.
Additional costs and fees can add between 1 to 10 cents per kilowatt-hour, depending on your utility provider.
Demand charges have been escalating rapidly over the past decade, often outpacing standard energy rates.
These hidden costs can cause your energy bills to skyrocket, especially during peak demand periods when electricity prices surge. Without real-time monitoring and management, your company is vulnerable to these fluctuations.
By implementing digital technologies, your company can monitor and adjust energy consumption in real-time, optimizing usage to avoid peak pricing and reducing overall expenditures.
We're in the midst of an energy transition as more companies realize demand for power exceeds the grid's capacity. At the same time, many are seeking to reduce their carbon footprint with more sustainable solutions. In addition to optimizing costs, implementing digital solutions for energy management has several other benefits, including:
Reliance on an aging and overextended electric grid poses risks of downtime and operational disruptions. Digital energy systems empowers companies with greater control over their energy supply through the deployment of microgrids and distributed energy resources (DERs). Microgrids, which can operate independently or in conjunction with the main grid, utilize DERs such as generators, solar panels, and battery storage systems. This setup ensures a consistent and reliable power supply, mitigating the impact of grid instability.
Real-time monitoring and energy optimization further enhance this control by providing immediate insights into energy consumption patterns, allowing companies to make adjustments to operations.
The future of energy is undeniably leaning towards diversification, with increased adoption of renewable sources like wind, solar, geothermal, and hydropower. Digitalizing energy management systems positions companies to seamlessly integrate these renewable sources into their operations. Advanced digital tools, such as predictive analytics and artificial intelligence, can forecast energy demand and renewable energy generation, enabling companies to balance loads effectively and maintain energy efficiency. This not only ensures a sustainable energy supply but also aligns with global initiatives aimed at reducing carbon footprints.
Digital transformation plays a crucial role in helping companies achieve their sustainability goals by providing real-time data, automation, and predictive analytics to optimize energy use. Smart energy management systems, powered by digital tools like AI and IoT, enable businesses to monitor consumption, reduce waste, and integrate renewable energy sources more effectively. Digital platforms can also enhance demand response capabilities, allowing companies to shift energy usage to off-peak hours, lowering both costs and carbon footprints. Additionally, advanced analytics help organizations track emissions, meet regulatory requirements, and meet ESG targets.
With digital energy solutions, businesses can improve efficiency, reduce their environmental impact, and accelerate their path toward net-zero emissions.
What does energy digitalization look like in practice? For commercial energy users, it’s a combination of energy systems and digital technologies, including:
Distributed energy resources (DERs) are small-scale energy generation or storage systems located close to the point of use, often connected to the local electric grid. These include renewable energy sources like rooftop solar panels, wind turbines and battery storage systems. Commercial facilities are increasingly adopting DERs to diversify their power supply, enhance energy resilience, and reduce operational costs. By integrating DERs, businesses can generate their own electricity, store excess energy for later use, and manage energy consumption more effectively, decreasing their dependence on utilities and mitigating the impact of grid disruptions.
The adoption of DERs has seen significant growth in recent years. In the United States, DER capacity is projected to reach 387 gigawatts this year, according to a report by consulting group Wood Mackenzie.
To put this into perspective, a nuclear power plant generates about 1 gigawatt of power, so this is like adding 387 new power plants, or enough to power about 290 million homes.
Real-time monitoring systems provide immediate visibility into energy usage patterns. This continuous oversight allows grid operators or energy consumers to see when and where they are using the most power and optimize their consumption.
Real-time data can flag critical issues, such as power outages due to weather conditions, and help companies determine when to rely on backup systems or other energy resources. It also makes it possible to participate in demand response programs where companies can earn financial incentives for curbing their power usage during times of peak demand.
Preventive maintenance can be another component of monitoring energy generation assets, especially for companies that use distributed energy resources. Being able to see how these assets are performing and when they need to be serviced allows companies to extend the life of their energy infrastructure.
Automated load management systems dynamically adjust energy consumption based on real-time demand. By scheduling high-energy tasks during off-peak hours when electricity rates are lower, companies can achieve significant cost savings. For instance, operating energy-intensive machinery at night can reduce strain on the grid and lower energy bills.
Another familiar example of an automated load management system is software used in electric vehicle charging infrastructure.
Automated load management can also apply to uninterruptible power supply (UPS) systems. If an outage occurs, the system will prioritize critical systems, ensuring essential operations continue uninterrupted.
Energy services play a critical role in the energy transition by helping businesses optimize energy use, reduce costs, and improve sustainability. Through real-time monitoring, utility bill analysis, and strategic power procurement, energy service providers identify consumption patterns, detect billing discrepancies, and recommend cost-saving opportunities. They can help companies navigate fluctuating energy markets, shift usage to off-peak hours, and integrate renewables like solar power and wind energy more effectively. With expert guidance, your company can secure the best energy prices while enhancing reliability and reducing your carbon footprint.
Energy digitalization isn’t just about cutting costs—it’s about taking control.
As power prices rise and grid reliability remains uncertain, businesses need smarter solutions that offer resilience, flexibility, and efficiency. e2Companies is leading this transformation with its Virtual Utility®, a fully integrated, turnkey energy solution that allows companies to generate, store, and manage power on-site. The R3Di® System pairs distributed energy resources (DERs) with battery storage and advanced automation, ensuring businesses have uninterrupted, conditioned power when they need it most.
The Grove365® monitoring platform and expert team provide real-time insights, helping companies navigate fluctuating energy prices, extreme weather, and evolving grid conditions. Using predictive analytics and demand response strategies, our team works with you to determine when to use on-site power and when to rely on public utilities, creating a playbook that maximizes cost savings while moving toward a more sustainable energy future.
If you're ready to take control of your power supply, connect with us today to talk about your needs and goals.