Continued escalating tensions in the Middle East have placed the Strait of Hormuz at the centre of global news, that has a vital role in the world’s energy supply.
For UK businesses, the situation serves as a reminder of how quickly global events impact through energy markets and ultimately impact our operational costs.
And it reinforces a message we promote! Take Control of Your Business Energy
Why Does the Strait of Hormuz Matters to All
The Strait of Hormuz is one of the most strategically important energy routes in the world, 20% of global oil supply passes through the strait every day, connecting energy producers in the globally.
Energy Prices
Over the past few years, events have sent shocks to energy markets and in turn to business!
- COVID-19 pandemic
- Russian / Ukraine Conflict changed European energy supply almost overnight, sending gas prices to unprecedented levels and forcing many organisations to reconsider how exposed they were to the wholesale energy market.
- Middle East Conflict causing energy issues globally. When tensions escalate in the region, shipping through the Strait of Hormuz becomes vulnerable to disruption. In the current conflict, it is closed and tankers stuck there and other areas are at risk! This has immediate consequences for global energy markets. Reduced supply and uncertainty quickly translate in rising oil and gas prices, with European gas markets already seeing significant price increases as supply concerns grow.
What UK Businesses Can Control
For organisations that rely heavily on grid electricity and wholesale gas markets, volatility in global energy prices can cause higher operating costs and uncertainty when budgeting and supplying.
While businesses cannot control global conflicts or geopolitical tensions, they can control how exposed they are to those risks.
Increasingly, more business are choosing to reduce their dependence on external energy markets by focusing on three key areas:
- Energy Reduction
The cheapest unit of energy is the one you never have to purchase. Improving efficiency, reducing consumption, carbon & cost. Future proofing your business and being less reliant on the global energy market.
- On-Site Renewable Generation
Solar will allow businesses to generate a significant proportion of their own electricity on-site, reducing reliance on grid-supplied energy. And do not let cost be an issue as we can and do have other options (asset finance-Power Purchase Agreements)
- Energy Storage and Smart Energy Management
Battery Storage (BESS) and intelligent energy management systems enable organisations to optimise when and how they use energy, together with Solar these strategies allow businesses to take meaningful control of their energy supply and costs.
How we help
As a leading Smart Clean Energy EPC we work with companies throughout the UK to help them take control of their energy future.
Our role is to support businesses in:
- Identifying energy reduction opportunities
- Designing viable on-site renewable generation projects
- Assessing energy storage and smart energy systems
- Developing long-term strategies that reduce exposure to volatile markets
Stewart Curtis
stewart.curtis@controlbusinessenergy.club
07894 568472