Dynamic energy contracts for businesses: What to consider
Dynamic energy contracts are on the rise. Especially for companies that can be flexible with their energy consumption, these contracts can deliver major benefits. But how do you, as a business user, choose the right dynamic energy contract? In this blog, we’ll explore the opportunities, risks, and what to look out for when making the switch.
What is a dynamic energy contract for businesses?
A dynamic energy contract is an agreement where the electricity price changes every hour (or even every 15 minutes), depending on current market prices on the electricity exchange (such as EPEX Spot). Unlike fixed or variable contracts, you pay the wholesale price of electricity plus a fixed supplier margin. This price can be very low or very high, depending on the time of day.
For companies with high consumption and flexibility in processes, this presents a significant opportunity to save.
Is a dynamic contract right for your business?
Not every business is suited for a dynamic energy contract. It’s particularly interesting if you:
- Can adjust your energy use flexibly
- Operate electric vehicles or charging stations
- Use heat pumps or other electric installations
- Have a smart meter
- Already work with an energy management system (EMS)
Also read our blog about smart energy management with dynamic tariffs
What to look out for when signing a dynamic contract
A dynamic contract can be beneficial, but it requires insight and preparation. Consider:
1. Cost structure
- Electricity prices vary hourly or per quarter-hour
- A fixed supplier margin applies
- Grid fees and energy taxes remain unchanged
2. Supplier transparency
- Can you view real-time tariffs through an app or portal?
- Is the supplier clear about their margin?
- Do they support integrations with smart tools?
3. Integration with smart technology
- Do you have a smart meter?
- Can your systems connect with an EMS like EnergyGrip?
- Is automation of processes (e.g., EV charging, heating) possible?
4. Risk management for peak prices
- Can alerts or limits be set?
- Does the supplier offer hybrid contracts or price caps?
Pros of dynamic energy contracts
- Lower costs when shifting usage to off-peak hours
- Incentive to use more renewable energy (e.g., during solar/wind peaks)
- More control over energy usage and costs
- Future-proof, aligned with a flexible energy market
Cons of dynamic energy contracts
- Cost spikes during expensive hours
- Complexity without proper tools or insight
- A strong need for EMS or automation to manage usage effectively
By using an EMS such as EnergyGrip, you can align consumption with price data in real time and automate processes.
Practical application: Smart charging and control with an EMS
More companies are combining a dynamic energy contract with smart control via an energy management system (EMS). For example, organizations with multiple charging stations, production machinery that can be scheduled flexibly, or buildings with heat pumps and boilers.
With an EMS like EnergyGrip, consumption can automatically shift to hours with the lowest prices. EV charging can start overnight or during off-peak hours, while equipment can temporarily scale down when prices peak. Companies that manage this well achieve structural savings and reduce their CO₂ footprint.
Conclusion: Is a dynamic contract right for your business?
A dynamic energy contract is best suited for businesses that operate flexibly and are data-driven. By responding to market prices in real time, you can both save and become more sustainable. However, it’s crucial to have the right tools to manage usage smartly.
Curious if a dynamic contract is a good fit for your organization?
FAQ: Dynamic energy contracts
What is the difference between a dynamic and variable energy contract?
– Dynamic: price changes every hour or quarter-hour
– Variable: price changes monthly or quarterly
Who benefits from a dynamic energy contract?
Companies with flexible processes or high electric consumption, such as logistics, production, offices with EV charging, or holiday parks.
How much can I save?
It depends on your usage pattern. With smart EMS control, businesses can save up to 20% on electricity costs.
Do I need smart equipment?
Yes, a smart meter and preferably an EMS.
What happens during peak prices?
Without control, costs can rise significantly. With tools like EnergyGrip, you can automatically adjust processes to avoid expensive hours.