Electricity Procurement

Electricity suppliers offer a range of very different procurement models. These models range from the classic fixed-price models, through tranche models, structured procurement models to the company’s own portfolio management.

We analyse, in close consultation with you, your consumption and your acceptance procedure in order to develop the most suitable business model for you. In this process, we take into account the extent to which spot and futures markets can be combined. In the framework of qualified tenders we choose, in consultation with you, a suitable supplier with the compiled model and evaluate, within the context of the tender in addition to the price components, further important conditions of delivery.

In the framework of a continuous monitoring of the procurement process, we support you at every stage in the management of your contracts. We compile a procurement strategy with you in order to optimize the purchasing date and take on the time-consuming task of monitoring the daily price development in order to determine the suitable procurement times. Upon request, a procurement manual can be prepared in advance in order to minimize procurement risks and increase opportunities by using appropriate purchasing triggers or a temporal allocation of procurement dates.

Natural Gas Procurement

In the course of liberalization of the energy markets, natural gas has become a commodity. As with electricity procurement, there is also a range of procurement concepts in natural gas procurement. These range from fixed-price contracts, through tranche models, portfolio models to classic oil price-indexed supply concepts. Depending on the individual requirements, a combination of such models could be chosen.

In close consultation with you, we evaluate your requirements structure and develop the optimal procurement concept for you. We take care of the supplier selection, taking into account the respective procurement concept. In this process, we utilize the complete range of suppliers from the classic natural gas generators to the local natural gas suppliers. Within the framework of a qualified call for tender, we determine the suitable supplier by taking into consideration the natural gas-related specifics of your delivery point.

As part of a permanent monitoring of your natural gas procurement, we would point out the optimal energy procurement times. Depending on the customer’s requirements, different procurement triggers would be implemented such as the variable Stop-Loss, the momentum analysis, the target price tracking or the limits of opportunity and risk.

Oil Procurement

The procurement of heating oil or diesel presents companies with a whole range of tasks. As well as the system of procurement, the subject of storage also raises questions. We will show you that there is a supply structure suitable for you. If necessary, we would analyse the replacement of your oil application.

In the scope of a regional market analysis, and taking into account the refinery system, suitable suppliers will be identified. Afterwards, the optimized supply or delivery structure will be worked out together with you. Within the framework of a qualified bidding process, a supplier will be selected taking into account the local conditions, such as the refuelling concept of a supplier.

The purchasing concept is developed according to your wishes. This may include a classical Spot-market supply, it may feature fixed price components or, for example, a flexible monthly indexation to a suitable index. Depending on the procurement system, appropriate volume-based mix concepts could also be agreed upon.

Liquefied Natural Gas (LNG)

Liquefied Natural Gas (LNG) offers many advantages for industrial companies as well as for road transport businesses, as an alternative to diesel, heating oil or other fuel gases (Butane/Propane). In addition to price advantages, LNG also offers an approximately 30% improvement in Carbon dioxide footprint and a 50% improvement in Nitrogen oxide emissions, compared to diesel or heating oil. The supply of LNG in the industrial sector is carried out through liquid refuelling in combination with downstream atmospheric vaporization. In this way, LNG can be used in industrial processes and is an ideal replacement for heating oil.

Together with you, we analyse your thermal system structure and, in the framework of a feasibility study, work out the economic viability of an LNG supply, compared to your current supply structure. Subsequently, a technical conception process is carried out and a delivery concept worked out. In this process, through a qualified call for tender, enquiries are made to LNG suppliers. The supply concept could be a turnkey solution, including the equipment as well as the maintenance, or just the supply of LNG. According to your wishes, a suitable procurement model (e.g. fixed-price model or an indexed procurement model) will be developed with the supplier.

Renewable Energy/Carbon-Dioxide-Neutral Energy Procurement

Alongside the traditional energy supply contracts, it is becoming increasingly important for companies to integrate additional Carbon dioxide neutral components into their own supply as part of the process of decarbonization. This, for example, is done in order to meet supplier specifications to achieve their own environmental goals, or to have an optimized Carbon footprint globally. Hereby, we support you in developing the suitable concept for your company.

On the one hand, implementation can be achieved by means of the appropriate selection of certificates for the reduction of Carbon dioxide emissions, i.e. indirect decarbonization. These certificates range from simplified proof of origin to complex Carbon dioxide savings projects. The possibilities are manifold and are selected according to company specifications. As a result, the Carbon footprint is improved accordingly.

On the other hand, a decarbonization can be achieved physically. Again, we will support you in your selection of the appropriate concept. Such a concept could be, for example, the use of Carbon dioxide neutral electricity generating systems, such as PV systems. We analyse your current situation and work out the appropriate concept for you, taking into account your consumption structure. The necessary contractual implementation is also supported by us.

Risk Analysis

The procurement of energy, such as electricity or natural gas, sets companies with a range of tasks. A central question arises concerning the appropriate purchasing strategy:
At what time should the purchase be done and how much should be purchased? Different procurement trends can be implemented to define a procurement strategy. In addition, market indexing should also be taken into account in order to determine which quantities should be purchased via the Spot market, and which amounts should priced in advance.
Depending on the selected procurement trigger and/or the Spot market share, there are increased opportunities in the procurement process for companies, but also increased risks.

In order to be able to estimate, or quantify, the opportunities or risks, depending on the procurement model, a statistical risk analysis tool can be used. The risk tool compares different procurement strategies with regard to the historical price development of the Spot and future markets, and also determines the results of the respective procurement strategy with regard to possible future price developments. In this case, the subordinate commodity prices for coal, gas or Carbon dioxide emission are analysed accordingly. For the evaluation of the individual risks, the current and simulated price data are combined with the respective requirements structure.

As a result, one receives a robust analysis for which procurement strategy is the most suitable in order not to overstep the given risks while, in parallel, maintaining biggest possible chances.

The risk tool used is used by many European energy suppliers as well as large energy consumers as a risk management tool.

Public Call for Tender

We assist public-sector clients in the safe and efficient procurement of electricity and natural gas. In particular, this involves the implementation of an “open pan-European procedure” and submissions under the sectoral regulation, but also the processing of electronic procurements and support in all areas of the client’s business concerning energy – be it on the subject of grid connection or self-generation plants.

In the process, all areas can be covered, from strategic planning and purchasing to the support in the implementation of special procurement methods, such as tranche or structured procurement.

Many public-sector clients are also obligated to carry out an energy audit according to the standard DIN EN 16247-1 or, in order to fulfil their social obligation, would like to introduce an energy management system. Our expedient assistance can be provided in both areas – carrying out an energy audit as well as introducing or offering permanent support regarding  energy management.