What is security of supply?
The term “security of supply” includes supply quality, which in turn comprises supply reliability, power quality, operational security of supply and service quality.
The term is not limited to security but also to obtain energy of a specific quality at any given time at transparent prices.
Security of supply consists of two parts, which is: physical availability of electricity at all times, and prices that are affordable for consumers. Since energy prices are pivotal to economic growth and industrial competitiveness, they are closely linked to overall prosperity.
Supply security and quality can be exposed to technical, economic, political and environmental risks.
- Technical risks: risks arising from inadequate investment in electrical plants and leading to their being in poor condition or unavailable.
- Economic risks: risks arising from imbalances of supply and demand due to lack of investment or underdeveloped trading activity.
- Political risks: risks arising from political tensions with primary energy producing countries and shortcomings of regulatory systems.
- Environmental risks: potential damage from accidents or environmental pollution (tanker accidents, terrorist attacks, nuclear accidents, etc.)
According to Mr El-Badri, OPEC General Secretary. Energy security should be reciprocal. It is a two-way street. Security of demand is as important to producers, as security of supply is to consumers;
- It should be universal, applying to rich and poor nations alike, with the focus on the three pillars of sustainable development and in particular the eradication of poverty;
- It should focus on providing all consumers with modern energy services;
- It should apply to the entire supply chain. Downstream is as crucial as upstream;
- It should cover all foreseeable time-horizons. Security tomorrow is as important as security today;
- It should allow for the development and deployment of new technologies in a sustainable, economic and environmentally-sound manner; and
- It should benefit from enhanced dialogue and cooperation among stakeholders.
Security of supply as previously mentioned, does not mean constant energy supply but also implies security of pricing by supplementing the already existing infrastructure with renewable energy sources. This will allow energy costs to remain relatively stable. This will not only help the service provider and the consumer a like.
By installing remote measuring meters, you can accurately gauge your usage, as well as formulation of an energy action plan to see what will be the best possible solution for the business. Solar energy for example is a great way of supplementing your energy supply as well as keeping the price stable.