Controlling Price Volatility Through Smart Energy Management

💡Turn This Technology into Financial Security

You are here to learn about onsite renewable technology, but the landscape has shifted. In today’s volatile market, onsite generation is no longer just an engineering solution. It’s the key to accessing smarter energy tariffs that secure your long-term financial stability.

At Wattstor, we treat onsite renewables as the enabler for our Price Protect electricity supply contract. By combining fully funded infrastructure with our smart energy tariff, we don’t just lower your bills, we cap your exposure to price spikes while letting you capture the upside when the market drops.

Read on to understand the technology but keep-in-mind…
The goal is de-risked, low cost electricity.

Energy price volatility in Europe has become an enduring market reality for many commercial & industrial (C&I) organisations. 

Wholesale electricity prices have soared more than 400% from pre-pandemic averages, and as recent research confirms, cross-border shocks and the growing share of renewables mean greater fluctuations are here to stay. 

Events like the Russia-Ukraine war and the shift away from long-term fossil fuel supply contracts to more unpredictable global energy markets have dismantled price stability, placing greater pressure on businesses to adapt or fall behind.

We know that price spikes erode margins, whilst unpredictable costs make forecasting and investment decisions fraught. But did you know that volatility also presents a unique commercial opportunity? By leveraging smart Energy Management Systems (EMS) with flexible price tariffs, organisations can shift energy usage to low-cost periods, optimise onsite renewables and storage, and actively shield themselves from market risk.

In this guide, we’ll be covering how smart energy management transforms price volatility from a threat into a strategic advantage. Learn the drivers behind persistent price swings, practical steps to control costs and carbon via smart EMS technology, and why Wattstor is the trusted partner for European C&I organisations needing certainty in uncertain times.

Understanding Energy Price Volatility (EPV)

Energy price volatility (EPV) refers to the fluctuation in the price of electricity as a commodity over a short period of time. It’s characterised by quick and typically unpredictable changes in prices, which can have significant impacts on consumers, businesses, and the wider economy as a whole.

The shifting market landscape 

Across Europe, businesses face an energy market defined by “peaks and troughs” in prices, with recent years being defined by sharp surges and sudden drops.

• Geopolitical Events
  Cross-border supply shocks (like conflicts, sudden outages, extreme weather events, or shifts in global fuel markets) can quickly disrupt access to gas, oil, or electricity across Europe. When pipelines or major infrastructure face unplanned interruptions, those shocks ripple across national borders, heightening price uncertainty for businesses and increasing the urgency to manage energy risk with robust strategies.
• Renewable Generation
  Weather-dependent renewables such as solar and wind, have rapidly increased their share in Europe’s power mix; delivering periods of abundant, low-cost electricity when conditions are favourable. However, these sources can also lead to unexpected scarcity when production dips, and in some cases, oversupply creates moments when energy prices become negative because supply outstrips demand.

How volatility impacts operational budgets

Unpredictable energy prices hit where it hurts: budget planning, cost control, and competitiveness. Margins become harder to protect when prices spike unexpectedly, while negative pricing can complicate contract management and disrupt forecasts.

Key impacts include:

• Unplanned cost surges that can erode yearly margins and force uncomfortable choices about production schedules or service delivery.
• Difficulty securing fixed-price contracts or long-term supply agreements, as suppliers themselves react to market unpredictability.
• Pressure on procurement and finance teams to continually monitor market movements, often requiring “real-time” flexibility and quick decision-making.

The Smart Energy Management Approach

A smart Energy Management System (EMS) is an integrated suite of hardware and software tools designed to monitor, control, and optimise how energy is used across a site.

By collecting and analysing real-time data, an EMS acts as the brain helping organisations identify inefficiencies, automate responses to dynamic market signals, and enhance both cost savings and sustainability measures. Smart EMS like Wattstor’s Podium integrate everything from utility metering and renewables to battery storage and flexible tariff management, making them vital for businesses facing rapid market changes or aiming to achieve Net Zero goals.

Turning price volatility into commercial opportunity 

Real-time monitoring and predictive modelling are central to turning price volatility from a risk into commercial advantage for business energy users. With continuous data analysis and live market tracking, these systems allow businesses to optimise when and how they use energy automatically shifting consumption to periods of lower prices and storing energy when it’s most cost-effective.

• Forecast-driven Strategy
  Predictive modelling is continuously at work with an EMS like Podium. Smart algorithms use real-time market data, site demand, and renewable forecasts to anticipate upcoming price spikes or dips. With this insight, energy use, battery charging, and even exporting surplus power can be scheduled for when returns are greatest.
  

• Live automation
  Energy assets like BESS are managed proactively and intelligently minute-by-minute, the EMS tracks pricing signals, forecasts load, and adapts to operational needs. Whenever prices drop, the system shifts site loads and charges batteries, locking in low-cost supply. During market peaks, it draws automatically from stored onsite energy, avoiding expensive grid imports and protecting business margins.
  

• Revenue generation
  Actively identifying opportunities for revenue generation through grid energy export. Surplus energy now becomes an asset, providing an additional buffer against energy price volatility. The process is fully automated with Podium EMS: the platform tracks market conditions and manages export schedules without manual intervention, allowing organisations to capture grid incentives and payments at precisely the right time.

An example success story

A recent Wattstor case study for an industrial wood plant in the Czech Republic illustrates how smart energy management is applied in practice. During periods when market prices drop or turn negative, Podium EMS automatically charges onsite batteries and shifts energy-intensive operations into those low-cost windows. When prices rise, the system relies on stored energy to power key equipment, avoiding expensive grid drawdown altogether.

By intelligently scheduling when machinery runs and maximising battery storage during cheap or surplus market periods, the plant consistently reduces its energy bills and protects its margins from price volatility showcasing how real-world automation delivers tangible commercial benefits.

Leonidas Spiliopoulos, Head of Product at Wattstor, explains:
“Wattstor has spent over a decade perfecting the delicate balance of hardware, software, and live market integration needed to make true optimisation work. This isn’t just another smart control system, it’s a uniquely proven platform that delivers savings for customers while ensuring Wattstor can sustain and scale the service commercially. The result is a market-first proposition: a system that benefits both sides by sharing in the value created from mastering volatility.”

Key components for controlling price volatility

Controlling price volatility starts with a coordinated approach; combining onsite renewables, battery storage, advanced management, and flexible tariffs into a robust energy strategy. Each component is designed to help businesses get ahead of market swings and build real resilience.

Onsite renewable energy generation

Deploying solar PV or wind systems directly on a site enables an organisation to generate clean electricity at source. Energy from these assets powers immediate business operations or charges batteries for later use. Excess generation can also be exported, further stabilising costs and supporting sustainability goals.

Battery Energy Storage Systems

Storage solutions like BESS are the backbone for making renewables work in an unpredictable market. Batteries charge when prices or onsite generation are favourable, and seamlessly discharge when costs surge or demand peaks. Wattstor’s integrated BESS provides critical flexibility, enabling businesses to take full advantage of low-cost periods and avoid grid imports at volatile times.

EMS Demand-Side Management

The Energy Management System (EMS) sits at the heart of demand-side management, acting as the “command centre” across all energy assets. Using real-time automation and predictive modelling, the EMS schedules, monitors, and harmonises energy use. Automatically shifting loads, optimising storage, and responding to market signals for maximum cost savings.

Flexible Energy Tariffs

Smart energy strategies also require the right commercial structures. Flexible, capped tariffs provide security from price surges and unlock savings when markets dip. Wattstor’s process aligns procurement with asset management, ensuring contracts work in harmony with onsite solutions, so businesses avoid overpaying and stay protected against uncertainty.

Wattstor’s process for getting started

Getting started with Wattstor is a straightforward, consultative process focused on maximising value and simplifying the clean energy transition for commercial and industrial organisations across Europe.

Step 1 – Site Energy Audit

The journey begins with a detailed site assessment. Technical experts map out operational energy use, identify peak demand times, and analyse load profiles to understand where onsite renewables, storage, or management systems will deliver the greatest impact. This helps tailor solutions to existing infrastructure and uncover hidden opportunities for cost and carbon savings.

Step 2 – Tariff & Market Assessment

Alongside engineering analysis, Wattstor reviews available tariffs and market conditions. Flexible energy contracts and price-capped procurement already proven in real-world projects are assessed to find the best commercial fit. Customers get recommendations on how to combine grid supply, onsite generation, and advanced automation for seamless, protected energy costs.

Step 3 – ROI Modelling

Robust financial modelling is also provided, using operational data and market-tested examples. Wattstor calculates payback periods, forecasts savings, and provides clear ROI projections for the proposed solution including maintenance, export options, and flexibility for future expansion.

Step 4 – Deployment & Optimisation 

Once approved, Wattstor handles design, installation, and integration of all energy assets. This includes commissioning onsite renewables, battery storage, and EMS systems configured to operate automatically for tariff optimisation, load shifting, and market-driven savings. Ongoing optimisation, monitoring, and reporting is built in too, so sites can continually refine their usage and stay ahead of market changes.

Conclusion

We hope you’ve found this guide helpful in your research and planning for controlling energy price volatility. In this guide, we’ve explored the essential steps for businesses to manage energy price volatility. With each component working together to lower costs, boost resilience, and support sustainability goals.

Contact our friendly team of experts to discuss next steps.

Wattstor delivers integrated solutions – from site audit to deployment – removing finance and technical barriers, and providing ongoing optimisation with industry-leading platforms like Podium EMS.