Supply-side Strategy Implications on Demand-side Opportunities

Abstract

Emerging Supply Opportunities
Major changes in the gas and electric markets have created a
range of risk management products to support supply-side planning.
The supply-side goal is usually to balance a client’s tolerance for cost
fluctuations with the lowest possible price.
Demand-side Integration
There are many implications a supply strategy has on demand-
side opportunities. They should be considered carefully. This integration
of supply- and demand-side planning often does not take place because
they have been thought of as two independent disciplines. They require
two separate sets of expertise.
Historically, demand-side planning has been a responsibility for
engineering and operations, while supply-side planning was the do-
main of purchasing and procurement.
The integration of supply and demand is critical to control of
your total energy picture. The right hand needs to know what the left
hand is doing. There are a number of situations that illustrate where
an integrated supply- and demand-side approach is vitally important.
We will examine two situations as examples. We will show how
your supply-side strategy affects your true energy costs and how that is
different than in the past. We will also show how a supply-side strategy
gives new triggers for demand-side actions.