Rational Behavior of an Enterprise in the Energy Market in a Circular Economy

Abstract

In order to ensure their market sustainability, it is essential for energy-intensive industrial companies to address the issues of efficient energy use. Companies that are prepared to embrace tariff hikes, structural changes in fuel and energy markets, and a shortage of energy resources have a wider range of options to respond to the new challenges posed by the external environment and to reduce their risks. This task becomes particularly relevant in the context of the development of the circular economy that is aimed at resource optimization, energy conservation, zero-waste manufacturing, and business models that are based on maximum operational efficiency. This study aims to develop a methodology for rational behavior of the energy consumer in the context of the circular economy. The concept of “rational behavior” is defined by the authors as the intention to make the maximum use of the advantages and potential of energy markets in order to reduce the cost of energy supply, increase the level of electrification in industrial production, and use the capabilities of their own energy business. The article describes the main principles of rational behavior that serve as the foundation for effective implementation of various strategies (that of the seller, buyer, or both) in a company. A link is shown between rational behavior and energy market potential management in a company as a mix of technological, economic, and organizational activities performed by the energy consumer in a competitive market and effective market risk management. Forms of off-grid power supply and conditions for their application in manufacturing, for example, mini-combined heat and power (CHP) plants and quadgeneration plants at large metallurgical facilities were analyzed.