Procuring Clean Energy: Factors to Consider

Companies need to consider the energy cost, the energy source's sustainability, and their corporate values and goals when selecting an energy source. With so many variables to consider, it can be difficult for companies to make the right energy supply decision.

FREMONT, CA: There is considerable variation between and within retail contracts, even though retail market contracts may offer competitive advantages. Business pressures to decarbonize and incorporate more renewable energy can complicate choosing an energy supplier.

Businesses must choose a provider that aligns with their corporate agenda among the many available options. Procurers should consider the following factors when selecting the right energy retailer and contract type:

Cost: Some businesses may choose the most economical option because of a reasonable rate. In addition to the lowest price, the cheapest option will likely have drawbacks, such as limited customer service or hidden fees. It is essential to know what is included and excluded in the price and whether it is set or increases over time. Cost versus flexibility should be weighed when choosing the lowest-cost contracts, as they are likely to be the longest-term contracts.

Payment processing: Keeping track of how the bill is received and paid is convenient for bookkeeping. The cost of a dual fuel contract for gas and electricity should be consolidated into one bill when there is a dual fuel contract.

Clean energy: Some suppliers prioritize clean energy over others. As businesses seek to demonstrate social responsibility and prepare for a future business landscape that understands biodiversity and climate stability, clean and renewable energy options play an increasingly important role. Long-term success depends on these factors. The energy source, such as wind, solar, biomass, and the plant's location, may also be considered when developing a renewable energy procurement strategy. Diverse energy sources and localized sources are important considerations.

Customer service: Through flexible and varied communication channels, customer support tools, and customer service can be an invaluable aspect of addressing energy-related issues efficiently for businesses.

As the energy transition progresses, stakeholder priorities change, and energy costs fluctuate, navigating this sea of energy supply options becomes increasingly difficult.

Factors impacting energy prices: Global supply and demand heavily influence the energy market, as with other international markets. In the global COVID-19 pandemic, when oil demand plummeted, these market fluctuations explain why oil prices decreased. They also reveal why coal prices are currently skyrocketing as high demand meets a supply chokehold due to countries refusing Russian fossil fuels following its invasion of Ukraine.