Top Energy Considerations for 2025: Why Your Business Should Act Now
As we usher in 2025, organizations like yours must navigate a dynamic landscape where energy is both an operational necessity and a strategic asset. Ensuring a reliable, cost-effective, energy supply is paramount for any company focused on growth and resilience. The stakes are high: procrastination can lead to higher costs, supply disruptions and missed opportunities in an increasingly competitive market. Here are the top energy considerations your organization should address this year.
High Projected Power Demand Growth
U.S. power demand is expected to increase by 15.8% by 20291. Many businesses are expanding their operations and scaling up production, which, coupled with the electrification of core processes across industries, is driving a higher demand for electricity. The rapid digital transformation and the proliferation of data centers further amplify this need for power and, though estimates vary, U.S. data centers could require an additional 65 to 90 GW by 20292.
Cumulatively, this demand may continue to place significant strain on existing infrastructure, adding unprecedented urgency for businesses to secure their energy supply.
Energy Supply Challenges Project Development
Several macroeconomic factors, including inflation, elevated interest rates, supply chain disruptions and increasing labor costs, have collectively driven up the costs associated with developing energy projects. These factors have resulted in a persistent rise in both the cost and timeframe needed to complete energy deals. Companies should stay informed of these dynamics to effectively adjust their strategies and plan ahead accordingly.
Energy Supply Volatility
The energy market can be volatile and unpredictable. Many businesses have experienced significant fluctuations in energy prices over the years, resulting in unexpected cost increases that can significantly impact their bottom line. Companies that rely heavily on predictable energy costs to manage their budgets and operations can find themselves at a disadvantage when faced with volatility, even incurring substantial financial losses, which makes it crucial to secure stable and predictable energy pricing.
Proactive steps you can take now for 2025 and beyond
Explore Long-term Contracts
Securing long-term energy contracts, including Power Purchase Agreements (PPAs) or Virtual Power Purchase Agreements (VPPAs)— available at NextEra Energy Resources as Renewable Product Purchase Agreements (RPPAs)— can offer numerous benefits. RPPAs remain one of the most popular contract structures for large organizations seeking to procure renewable energy, while mitigating energy market price volatility. RPPAs offer numerous strategic advantages, such as the ability to meet 100% of a company’s power needs across multiple facilities and regions, off-balance sheet accounting treatment under US GAAP and additionality claims for new-build projects.
Invest in Energy Infrastructure
Investing in your own energy infrastructure can provide significant control over your energy supply. This can include on-site renewable energy installations, as well as energy storage solutions. By generating your own power, you can reduce dependence on external suppliers and shield yourself from market volatilities. For many businesses, onsite generation is an effective solution used to supplement or offset purchased grid power, while providing energy cost savings.
Collaborate with Energy Providers
As the large-scale renewables market intensifies, securing projects with favorable terms and locations may become more challenging. Many buyers entering the RPPA market today for new-build projects are looking at commercial operation dates as far out as 2028. More than ever, having access to a diverse portfolio of projects, especially those with lower risk and nearer-term deliverability, is essential for ensuring a reliable power generation source in a timely manner.
Working with reliable energy providers like NextEra Energy Resources can provide strategic advantages. These collaborations can offer access to a broader range of energy solutions and technologies, expert guidance and innovative solutions tailored to your business needs. By collaborating with trusted energy experts, you can navigate the complexities of the energy market.
Act Now to Get the Energy You Need
The urgency to act now cannot be overstated. Rising demand, constrained supply and escalating costs highlight the need for immediate, strategic energy decisions.
As the largest investor in energy infrastructure in North America, NextEra Energy Resources brings decades of success in designing, constructing, and operating large-scale projects. Our near-term solutions are backed by unparalleled scale, expertise, and cutting-edge technology, ensuring we meet diverse energy needs across the nation. As experts in renewables development, and our 300 GW pipeline5 of renewables projects in development enables us to deliver fast, scalable solutions. Work with NextEra Energy Resources to secure your energy future and capitalize on the strategic advantages of innovative, reliable and clean energy infrastructure.
- Grid Strategies LLC. (2024). National load growth report
- Grid Strategies LLC. (2024). National load growth report
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