The Enernova Insights

In today’s volatile energy markets, businesses are increasingly turning to layered hedging strategies to manage risk and ensure budget stability. Layered hedging, or the practice of spreading out hedging transactions over time, provides several key benefits that make it an attractive option for energy consumers.

Under the leadership of key figures like Chris Wright and Doug Burgum, Trump’s Energy Council is pushing for significant shifts in U.S. energy policy, prioritizing deregulation, increased fossil fuel production, and a reevaluation of renewable energy support, while aiming to modernize energy infrastructure and reduce bureaucratic obstacles to innovation.

PJM Interconnection has proposed delaying its upcoming December 2024 capacity auction by six months, moving it to June 2025. A delay would impact at least three upcoming PJM capacity auctions. These auctions are essential for ensuring PJM has sufficient power supplies to meet future demands.

The EnerNova Client Strategy Team advises customers to separate the capacity cost from the contracted energy price and use a capacity pass-through product for several key reasons: