In the first blog of this two-part series, we looked at the current volatile energy market and adopting dynamic risk management and energy purchasing. This second blog discusses how to proactively incorporate renewables into your strategy.
Across the energy market, we witness many consultants adopting a static approach for their clients. The risk and purchasing strategy is set at the beginning of a contract and is rarely – if ever – reviewed or adjusted throughout. With this approach, renewables are often viewed as separate and unaligned with the energy risk management strategy.
However, we believe renewables should be an integral part of the risk management strategy, and power purchasing agreements (PPAs) and onsite renewables must be considered a mechanism to hedge market risks and create a more balanced energy strategy for your business.
Hierarchy of Renewable Needs
Below is what we call the Hierarchy of Renewable Needs, which provides a visual overview of the options available to you:
Your renewable energy options
There are many PPA options available, including virtual, hybrid, corporate/sleeved, time-of-use and private wire arrangements, as well as the option to have renewable energy sources directly onsite – and with current market prices, these offer good value at the present time.
Now is also when data centre tenants insist on renewable power and when reducing emissions and achieving net-zero targets are central challenges. But be aware that the renewables market is extremely fast-moving, and the cost and availability will come under pressure in the next 12-24 months.
Ready to make renewables integral to your strategy?
If you want to discuss your renewable energy options, please don’t hesitate to get in touch via our contact page.
Read more about our work in net zero and compliance ›
This blog is part of a two-part series looking at a dynamic approach that combines risk management and energy purchasing and proactively incorporates renewables into your strategy. Read the first blog ›