Renewable energy is already paying dividends for organizations that embrace sustainability, in cost savings as well as revenue. In its 2015 Global Corporate Sustainability Report, Nielsen said brands that show a commitment to sustainability saw 4% growth in sales worldwide last year, while those that did not saw less than 1% growth.
Part of the reason is that consumers are increasingly showing a preference for brands that have embraced sustainability. In 2015, 66% of respondents to Nielsen’s survey said they are willing to pay more for sustainable goods, a steady increase from 55% who said the same in 2014 and 50% in 2013. This isn’t limited to just companies that sell sustainable goods specifically—Nielsen found that 45% of respondents said a company’s “commitment to the environment” would sway their purchasing decisions. And with 73% of millennials and 72% in Generation Z (those younger than 20) saying they’d pay more for sustainable products, this mentality is only likely to grow as the market matures.
With so much interest in renewable energy, we recently hosted an event with Enel X’s in-house distributed energy resources expert John DuPont and Sales Director Jeff Lenetsky to discuss how your organization can benefit from incorporating renewables into their energy procurement strategy. Here are some key takeaways.
Capitalize on Low Energy Prices
With natural gas prices near record lows, some may jump to the conclusion that purchasing renewable energy now might actually cost your organization more money. However, we’ve seen the opposite trend.
In 2015, we saw some of the world’s largest organizations significantly increase their renewable energy investments. Low prices for natural gas make for a competitive market for electricity overall, creating plenty of opportunities for your organization to use renewable energy purchasing to meet your sustainability goals in a cost-effective way.
Use Technology to Mitigate Regional Price Variations
Prices for green power, typically secured through renewable energy certificates (RECs), can vary significantly region-by-region. Everything from wind speed to regional compliance schemes make renewable energy more expensive to procure from some areas than others, and organizations that lack the tools to take these factors into account can end up spending more on energy than they had to.
Enel X uses live market feeds to take a forward-looking approach to procurement, comparing what your organization pays—from the day your energy procurement agreement begins—with forward marketsprices and your load data to get insight into how much you’d pay for your next agreement. Understanding when and where to buy energy will help your organization shape its go-to-market strategy to get the best price possible.
Secure the Best Possible Price with Auction Tools
With energy suppliers bidding for your organization’s business, simply accepting the first offer will leave better options on the table. You could be missing out on significant cost-saving opportunities.
With an auction platform, your organization can find the lowest-priced option for energy, whether it’s green energy or conventional power. You can see detailed procurement options available to your organization—including the length of the contract and the cost of the energy—and how different suppliers will sweeten the deal to win the bid.
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