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Why Great Procurement is Essential for Net Zero

The climate crisis requires commitment and collective action from everyone in a business, from corporate level right through to operations, logistics, and the shop floor.

Here we look at how energy procurement has a crucial role to play in delivering better energy management and net zero goals.

Choosing the right contract Energy prices have recently reached levels not seen for years which have been impacted largely by low renewable energy generation. This is causing many clients to rethink their procurement strategy from traditional fixed term contracts which would lock them in at current rates, to more flexible dynamic contracts to spread the risk. This will be further impacted by new TCR charges which are coming into place soon.

Having no contract in place will generate even higher variable rates so it’s important that businesses make sure they arrange contracts before they move to out of contract terms.

When businesses are in the process of significantly reducing their energy use, they need to ensure this is co-ordinated with existing contract terms. Take or pay contracts will charge for the forecast power whether it is used or not which could be significant and may impact on any payback periods.

Data reporting

Reducing energy is the first step to a greener business. Having solid data which explains how much energy is used, and where and when it is used is essential for a clear actionable plan. It will help to identify savings opportunities, allow you to set realistic targets and measure success.

Reducing out of hours waste which can be picked up through occupancy reports from half hourly meters can be a quick win, save money and help to drive behavioural change.

A detailed energy audit will identify additional opportunities for energy savings across site(s) to generate a robust, costed plan which operational KPI’s can be created and measured against to involve the whole business.

Green energy

Buying green energy generated by renewable sources has become much more accessible, with suppliers offering most or all electricity from zero-carbon sources.

Buying good quality REGO backed renewable energy will help you meet Scope 2 emission reporting, a net zero requirement, although costs may be prohibitive as demand has considerably pushed up prices.

With renewable energy having ongoing limited capacity which drives up prices, a solution might be to have on-site energy generation to store volumes you want and then buy when renewable energy generation is high and market prices are stable.

How we can help

Our team offer a complete energy management service shaped around the individual needs of our clients.

We help businesses:

Choose the best procurement strategy based on consumption, market activity and future business plans;

Reduce energy through data analysis and efficiency audits;

Reduce carbon and plan for net zero.

Get in touch for help with your energy management strategy.

0114 327 2645


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