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Looking ahead to 2024, companies are facing new challenges and opportunities in defining their energy strategy. This blog post looks in more detail at several notable trends that could have a significant impact on your energy environment. From natural gas prices and mandatory sustainability reporting to capacity challenges and changing consumption patterns, this blog will reveal key developments.
1. Natural gas prices and reserves:
Uncertainty around natural gas prices remains a critical concern. A warm winter could affect prices and companies should anticipate having sufficient reserves after the winter of 2024. Strategic planning is essential to ensure the stability of energy supplies.
2. Electricity
2.a Electricity prices and emerging technologies:
Electricity prices depend on the available production, demand trends and the price of CO2 certificates and natural gas. The integration of battery technology and the rise in the number of electric vehicles are introducing new dynamics into the energy market. Companies must follow these trends closely and develop the right strategies to take advantage of them.
2.b Increase in grid costs:
A €6.4 billion euro investment by Elia, the high voltage grid operator, over the next four years will result in an increase in power bills for consumers and businesses from 2025. While these investments are essential to the energy transition, companies should be aware of the financial implications and the need for energy efficiency.
2.c Decrease in consumption in 2023 in BE - however, prices remain x2.5 as opposed to pre-COVID:
Due to the energy crisis, electricity and gas consumption in Belgium fell to its lowest level since the turn of the century in 2023. Energy consumption awareness remains high, but post energy crisis price dynamics will play a key role in future energy consumption trends.
2.d Capacity and supply developments:
Elia reports that there is currently no further scope for new energy projects on the West Flanders grid. The growing demand for electricity and the emergence of charging stations and heat pumps are affecting the available capacity. Flexible solutions are being proposed as interim solutions until planned grid reinforcements become operational.
3. Mandatory PV for >1000 MWh:
With effect from 30 June 2025 it will be mandatory to install solar panels on buildings in Flanders with an annual electricity offtake in excess of 1 gigawatt hour. This brings new challenges, but also opportunities for renewable energy production. Companies will have to adopt a carefully considered approach in order to comply with this obligation in a timely and cost effective manner.
4. Mandatory ESG reporting:
European companies will be required to produce annual sustainability reports with effect from 2024. This will include transparent information on environmental pollution, human rights and diversity. These regulations aim to promote sustainable business practices and combat greenwashing. It is of vital importance that companies prepare for this detailed reporting duty in order to meet these new standards.
Conclusion
The energy environment faces exciting changes during an auspicious 2024. Companies with a flexible approach that plan strategically and adapt to these dynamic trends will not only be able to overcome challenges, but also to thrive in a more sustainable and competitive energy environment. Odot, with its expertise in energy management, will play a key role in shaping this transformative environment and is ready to proactively guide companies in navigating these upcoming changes. It is an ideal moment for companies to join Odot in being prepared for the future of energy.