Stable energy costs are crucial.
But without a strategy, you risk unpredictable costs.
Energy prices are constantly changing. For healthcare institutions, it is essential to have a strategy that guarantees predictable and stable energy costs. Here’s why strategic energy purchasing is important for your healthcare institution.
What healthcare institutions need to know
Energy is traded on various marketplaces. Consider the futures market and the spot market. The futures market is for energy that you will receive at a later date, such as a month, a year, or even years from now. The spot market is for energy that you need the next day or even the same day. This is also known as a dynamic energy contract, your price varies per hour (or per day or per month, depending on how you agreed).
Prices are constantly changing and are influenced by many factors:
- Fuel mix and prices of coal and CO2
- Weather forecasts that affect solar and wind energy
- Geopolitical developments such as wars and economic conflicts
Purchasing in advance: a smart choice
If you do not purchase energy in advance, you are dependent on the market price at that time. These prices can fluctuate enormously. This poses a major financial risk for healthcare institutions that require stability and predictability. That is why we believe in spreading your energy purchases over a longer period (3-4 years in advance). This way you can implement a strategy and let it work optimally. You are less dependent on the market price at one time.
Energy purchasing strategies for stability
Spread purchases with a stop-loss click strategy: Spread the purchase moments, for example per quarter. This spreads the risk and takes advantage of lower prices at different times. Think of a strategy in advance before you are going to procure). This allows you to optimize prices and have budget certainty, which is crucial for healthcare institutions. This approach gives you the opportunity to implement a technical strategy, based on pre-determined parameters. This way you keep emotion out of it and you don’t speculate!
Practical tips for energy purchasing
- Long-term planning: Consider purchasing energy for several years in advance.
- Risk spreading: Use a stop-loss click strategy to minimize risk.
- Stick to your strategy: Stay true to your strategy.
Ensure stability in energy purchasing
As a healthcare professional, your heart lies in care. Energy is something you have to be able to rely on. Because without worrying about energy costs, you can focus on what really matters. If you are relieved of your energy concerns, you can focus on care. Based on your sense of social responsibility, you want to be at the forefront of sustainable energy and comply with laws and regulations. And of course you want to keep costs for your clients limited and not incur unnecessary energy costs. We understand that.
We don’t have enough time to track daily price fluctuations and strategically time energy purchases. We also don’t have enough expertise, even though it’s a significant investment. PowerQ has all the expertise under one roof and takes care of it.
Aad Grootenboer – CuraMare
PowerQ helps you with:
- Energy purchasing certainty: We purchase energy for your organization using a tailored, appropriate strategy. This can be done collectively or individually. We keep your long-term interests in mind. The goal is always: favorable rates and budget security.
- Insight into energy consumption: Measuring is knowing. Our energy monitoring tool provides insight into energy consumption and tools to manage it.
- Sustainable healthcare real estate: PowerQ will work with you to create a plan for solar panels, green energy, e-mobility, and energy efficiency, among other things. We can share best practices with you, based on our years of experience in healthcare.
Since 2004, PowerQ has been helping healthcare institutions with strategic energy purchasing. Our experience and in-depth knowledge enable healthcare institutions to focus on what really matters: providing care.
