Article

Common energy terminologies explained

Samuel Quek

May 12, 2025

Are you the average household consumer trying to make sense of the energy industry? With so many different types of electricity contracts and grid operators playing a role in how power reaches your home, it might be hard to keep up. But having a quick understanding of key terms is always a great place to start.

In this guide, we break down the common terminologies so you can get to know the energy industry better in a clear and simple way.

Common energy industry terminologies:

Renewable Energy – Energy from natural sources that are constantly replenished, like solar, wind, and hydro.
Electrification – Replacing fossil fuel-based systems (like gas heating) with electric alternatives.
Green Transition – The shift from fossil fuels to sustainable, low-carbon energy sources to combat climate change.
Kilowatt (kW) – A unit of power equal to 1,000 watts.
Kilowatt-hour (kWh) – A measure of energy consumption; one kWh equals using 1,000 watts for one hour.
Fixed Price Contract – An electricity contract where the price per kilowatt-hour stays the same throughout the contract period, offering price stability.
Hybrid Price Contract – An electricity contract that combines both fixed and variable rates, typically offering a stable base rate with adjustments based on market conditions or usage.
Variable / Dynamic / Spot-Price Contract – An electricity contract where the price varies hourly based on real-time market rates, depending on supply and demand conditions.
Demand Response (DR) – Programs that incentivize users to reduce or shift electricity use during peak demand periods.
Demand Shifting – Moving energy usage to off-peak hours to balance demand and reduce consumer’s costs.
Flexibility (Energy) – The ability to adjust energy consumption or production in response to grid signals (like price or grid needs due to congestion).
Flexibility Markets – Platforms or systems where energy consumers, producers, or aggregators can offer or sell their ability to adjust electricity usage or production in response to grid needs. These markets balance demand and supply, reduce grid congestion, and support the integration of renewable energy. Finland Example: Fingrid’s mFRR & aFRR markets‍, or local flexibility platforms operated by DSOs.
Utility Companies (UCs) – Utilities that provide essential energy services such as electricity or gas to consumers. They may handle generation, distribution, or billing. Finland Example: Helen, Fortum.
Distribution System Operators (DSOs) – Grid players responsible for operating and maintaining the local electricity distribution networks that deliver power from the transmission system to homes and businesses. Finland Example: Caruna, Elenia, Helen Sähköverkko.
Transmission System Operators (TSOs) – Organizations that manage the high-voltage electricity transmission grid, ensuring stable and secure power flow across regions and countries. Finland Example: Fingrid.

What do we do at Synergi?

At Synergi we are helping to accelerate the transition toward sustainable energy sources with smart and flexible software. Our free to use mobile app platform helps users optimize their household energy consumption.

The Synergi app also enable households to use electricity more efficiently and help utilities participate in flexibility markets with their customer-owned home energy assets.

Read more about who we are and what we do here.