18990_Authority_Feb_2026

38 The Authority │ February B uilding a F uture - proof E nergy S trategy : F rom V olatility to V alue C reation For many years, most organizations have viewed energy as a fixed and inevitable expense. Only large organizations, often in specific markets, have the capability to manage energy strategically and harness it for financial growth. This outlook is now changing. In today’s rapidly evolving energy landscape, organizations encounter a complex interplay of challenges and opportunities. Rising energy costs, market volatility, regulatory pressure, and the global push toward sustainability are forcing enterprises to rethink how they manage energy. The good news? With the right strategy, energy can shift from a cost burden to a powerful value driver. Explore how organizations can build a future-proof energy strategy—one that balances cost control, risk management, and sustainability. Managing Volatility with Strategic Risk Planning: What’s Driving It—and How to Build Resilience Energy markets in the United States are facing unprecedented volatility, shaped by a mix of structural and external forces. Demand for electricity is surging as industries electrify and data centers proliferate, while infrastructure development struggles to keep pace. This imbalance amplifies price swings during peak periods. Natural gas, which fuels roughly 40% of U.S. power generation 1 , remains a key vulnerability. Global price fluctuations and supply disruptions ripple through domestic markets, often compounded by extreme weather events. Heatwaves and winter storms strain grid reliability, triggering sudden spikes in demand and outages. Meanwhile, the transition to renewables adds complexity: although clean energy reduces long-term costs, its variability introduces short-term uncertainty, especially when backup systems are insufficient. Policy shifts and regulatory uncertainty further cloud investment decisions, influencing market stability. Resiliency planning and energy risk management is no longer optional— they’re a strategic imperative. Organizations can mitigate volatility by diversifying energy sources, investing in renewable energy procurement, and leveraging demand response programs. Advanced forecasting tools and scenario planning help anticipate disruptions, while long-term power purchase agreements (PPAs) and hedging strategies provide cost predictability. Building resilience into energy procurement and operations ensures organizations can navigate uncertainty and maintain competitiveness in a rapidly evolving energy landscape. In short, energy price volatility is no longer a seasonal anomaly; it’s a structural challenge shaped by climate extremes, global markets, and the evolving energy mix. 1 U.S. Energy Information Administration (2024). What is U.S. electricity generation by energy source? www.eia.gov/tools/faqs.php?id=427&t=3.