The Challenge: Volatile Electricity Prices
While renewable energy capacity is rising, electricity prices remain highly volatile. When wind and solar resources are abundant, electricity can be competitively priced (even exceptionally cheap). But during periods of low renewable availability or high system demand, prices can rise sharply. For industries that rely heavily on steam, these cost spikes translate directly into higher operational expenditures (OPEX).
This uncertainty creates risk. Companies want to embrace electrification to reduce emissions, but they must also protect their bottom line. A production process that becomes too expensive to operate or whose economics swing unpredictably from hour to hour is not sustainable. As a result, many facilities hesitate to rely solely on electric steam production, preferring the predictability of fossil-fuel systems during expensive electricity periods.