Whether your energy demand is consistent or not, energy prices are volatile
Changes in the energy production sector bring new price risks that are currently borne by your organisation even if you are not aware of this fact.
Energy portfolio management is about managing these price risks. Regardless of how you purchase electricity and natural gas, there is always some level of risk, no matter when you purchase, for which period you purchase and at which price you buy – even if you decide for fixed-price procurement.
Risk does not necessarily mean that something bad will happen, but it means that it cannot be predicted what exactly happens, whether good or bad. Electricity and natural gas are commodities and usually your full-supply contract is based on standardized products traded on energy exchange. Those quotes on energy exchange are highly volatile.