By True
As businesses push toward net zero, the way they buy energy needs to change too.
Traditional procurement strategies are built around cost and consumption history. But once you introduce on-site generation, PPAs or electrified heat, your energy profile shifts, sometimes dramatically. If procurement doesn’t keep up, the risk isn’t just inefficiency. It’s financial loss.
Take solar PPAs. These deliver energy when the sun shines, not necessarily when your business needs it. If your operations peak in the evening, you’ll still be reliant on grid supply at the most expensive times. Worse, excess solar exported during low-value hours could return less than what you paid to hedge it.
Wind generation poses similar challenges, albeit less predictably. In both cases, without aligning supply contracts and hedging strategies to reflect actual demand, you could find yourself overcommitted, forced to sell back surplus at a loss, or underprepared, needing top-up supply at a premium.
Another area often overlooked is the credibility and value of REGO-backed contracts. Not all ‘green’ tariffs are created equal. Some are tightly linked to specific renewable generation, while others are more loosely associated, offering less impact and transparency. Understanding the distinction is critical for businesses looking to report credibly on emissions reductions.
Then there’s the matter of coordination. Sustainability, procurement, and finance teams frequently operate on separate timelines and priorities. That can lead to overlapping contracts, duplicated efforts and diluted results.
The solution? Procurement needs to become more proactive, data-led, and future-focused. That means planning not just for today’s operations but for tomorrow’s energy shape, factoring in everything from new production lines and EV fleets to battery storage and demand flexibility.
Energy procurement isn’t just a cost centre anymore. When done right, it’s a strategic lever that can unlock long-term savings, reduce emissions and future-proof your business in a fast-changing energy landscape.
Tools like True help make this possible, bringing clarity, coordination and insight to every step of the journey. Speak to us to see how.
