Lacy Bates, membership development manager of Southwest Meat Association, asked Chris Watson of Energy by 5 what the meat and poultry industry can expect from the energy market in 2024.

The team at 5 sets the standard for energy advisory firms in North America, helping commercial, industrial, and public-sector clients create and implement energy plans.

1. What services does 5 provide to the meat industry? 

5 sets the standard for energy advisory firms in North America, providing customized and comprehensive Whole Health Energy Plans to a wide variety of clients. 5 helps clients in the meat packing industry with their energy procurement needs, backup generation and resiliency efforts, operational efficiencies, usage analytics, sustainability efforts, and much more.

2. What should meat and poultry processors be aware of in 2024, regarding energy? 

Higher prices (especially in future winters) could be the norm going forward. Our recommendation is to have a robust energy procurement plan and stick to it. The worst thing an energy buyer can do is to continue to hope that energy prices fall to an unrealistic price point and then be forced to purchase at prices that are considerably above budget. Understanding where a market is and what is a reasonable price is critical in hitting budget numbers.

3. How can 5 assist small companies in measuring sustainability to reach their goals? With access to energy data, 5 can calculate Scope 1 and Scope 2 emissions and then identify purchasing strategies to achieve the customer’s sustainability objectives.  Potential strategies can include renewable energy certificates or offsets, or securing financial or physical energy from solar and wind farms or nuclear power plants. All of these instruments can be bundled into traditional energy supply contracts or handled via standalone agreements.
4. When is the best time to purchase energy? 

Frankly, there is no “best” time.  Energy is a commodity and to some extent there is always value somewhere in forward pricing, but we understand clients have limitations.  5’s recommendations are guided by an understanding of the client’s objectives and market conditions.  We are proactive with alerting clients to both market opportunities and risks.

5. How can Energy by 5 help companies with electricity and natural gas procurement needs? 

5 starts with an in-depth analysis of an organization’s energy usage and costs to identify any immediate demand-side savings opportunities. We then work with the client to identify the best pricing structure and manage a competitive bidding process among capable energy suppliers to identify the most attractive supply offers, followed by a negotiation of contract terms and conditions for the appropriate term length.  Once the contract is secured, we assist with ongoing service needs and monitor market conditions for the ideal time to run this process again for the next contract term.

6. What is Level5? How can it benefit meat and poultry processors?

Level5 is a proprietary online platform built by 5 that serves as an energy data repository to help clients identify demand-side management opportunities. Level5 also provides unparalleled insights and transparency into wholesale natural gas and electricity market data that is not available to most end-use customers. 5 uses this market data to help clients to develop customized energy management strategies and make better energy purchasing decisions.