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Top 5 Trends in Energy Procurement You Can't Afford to Ignore

As the energy landscape shifts, businesses in Australia face a slew of new challenges and opportunities. Understanding the dynamics of energy procurement is critical for operational efficiency, cost management, and regulatory compliance. Here's a deep dive into the five key trends shaping the future of energy procurement.

Decentralisation of Energy Systems

Exploring the Trend

The traditional energy model, featuring large-scale generation plants transmitting electricity over long distances, is being supplemented—and in some cases, supplanted—by decentralised systems. These systems, such as microgrids, are local energy networks that can operate autonomously and are typically powered by renewable sources.

Implications for Businesses

Australian businesses can benefit from decentralisation by procuring energy from, or even investing in, local renewable projects. This not only reduces reliance on the national grid but also lessens transmission losses and costs.

Benefits of DecentralisationDescription
Enhanced Energy SecurityLess dependence on the national grid reduces the risk of widespread outages.
Cost EfficiencyLocal energy generation can be more cost-effective, avoiding transmission charges.
Environmental ImpactDecentralised systems often use renewables, lowering carbon footprints.

Emphasis on Renewable Energy Sources

Government Incentives and Policies

Australia's energy policy landscape actively promotes the adoption of renewable energy. Programs like the RET encourage businesses to transition towards more sustainable energy sources. States also offer various incentives, including feed-in tariffs for solar energy.

Business Advantages

The shift towards renewables not only aligns with environmental goals but also provides economic advantages. Long-term Power Purchase Agreements (PPAs) with renewable producers can secure energy at a predictable cost, sheltering businesses from the volatility of fossil fuel prices.

Digitalisation and Smart Energy Solutions

Impact of Digital Technologies

Digital solutions like smart meters and energy management systems offer granular control over energy usage. Businesses can now automate and optimise energy consumption, reducing waste and cost.

Leveraging Smart Energy Management

By using these technologies, businesses can engage in active energy procurement, where they can adjust their usage in real-time in response to market signals, such as price fluctuations, essentially buying energy at the most economical rates.

Energy Storage and Management

Advances in Technology

Battery storage systems have progressed significantly, with lithium-ion technology leading the way. These systems allow businesses to store excess energy—whether generated onsite or purchased from the grid during off-peak hours—for later use.

Strategies for Businesses

Effective energy storage enables demand-side management, where businesses can use their stored energy during peak tariff periods, leading to substantial cost savings.

Energy Storage BenefitsDescription
Peak ShavingUsing stored energy to reduce demand during peak hours and lower energy bills.
Load ShiftingStoring energy when it's cheap and using it when prices are high.
Renewable IntegrationBalancing the intermittency of renewable energy sources.

Corporate Social Responsibility and Sustainable Procurement

The Growing Importance

Sustainable procurement reflects a company's commitment to corporate social responsibility. By choosing energy from sustainable sources, businesses can boost their brand image, appeal to environmentally conscious consumers, and even enjoy financial benefits.

Benefits of Sustainable Procurement

It's a comprehensive approach that evaluates the environmental, social, and economic aspects of energy purchasing decisions. It can foster a better corporate reputation and align business practices with broader national and global sustainability goals.


Australian businesses that harness these energy procurement trends will not only secure economic benefits but also contribute to a more resilient and sustainable energy system. Integrating renewable energy, leveraging digital solutions, employing advanced storage techniques, and practising sustainable procurement are now integral to forward-thinking energy strategies.

Frequently Asked Questions (FAQ)

Q1: How can businesses ensure they are procuring energy sustainably?

A: Companies can look for energy suppliers that provide green energy options, invest in renewable energy certificates, or directly produce renewable energy through onsite installations.

Q2: What are the risks of decentralised energy procurement?

A: Decentralisation may involve more complex management and potential technical challenges associated with integrating various local energy sources. It also requires a larger upfront investment compared to conventional energy procurement.

Q3: How do digital technologies reduce energy costs?

A: Digital technologies enable more precise energy monitoring and management, allowing businesses to optimise consumption, predict maintenance needs, and respond to changing energy prices in real-time.

Q4: Why is energy storage considered a key trend in energy procurement?

A: Energy storage plays a vital role in balancing supply and demand, enabling businesses to use energy more efficiently and economically, especially as renewable energy sources become more prevalent.

Q5: Can energy procurement strategies impact a company's market value?

A: Yes, energy procurement strategies that focus on sustainability can improve a company's market value by building a positive brand image and attracting customers and investors who prioritise environmental responsibility.

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