What is a good strategy for energy purchasing in these turbulent times? And what about the new Energy Act, the problem of non-synchronization, grid congestion and solar panels? These are questions that both real estate and purchasing departments, as well as directors, are struggling with. Time for PowerQ director Loek Hulsbergen to shed some (sun)light on today’s energy trends.
After a price explosion in 2022, energy prices are now falling again. However, the question is whether this decline will continue. There are many negative developments that could lead to a significant price increase – including the ongoing war in Ukraine – but few positive developments that could result in a price drop of comparable magnitude. In addition, energy suppliers nowadays want to take less risks. The energy market seems to have changed structurally. We asked PowerQ director Loek Hulsbergen 7 questions about current trends in the energy sector.
How do you look back on the 2022 energy crisis?
Loek: “I know examples of hospitals where their energy costs have increased by a factor of 8. Fortunately, that did not happen with our customers. If you look at how we did our energy purchasing for 2023 and 2024, you will see that the damage has been extremely limited. PowerQ was even 40 to 50 percent cheaper than comparable collectives. How do we do that? With long-term thinking and long-term strategies.”
What is the best strategy to purchase energy at the lowest possible price?
“That varies per organization, per supplier and per day. So this is the perfect time to seek help from an energy consultant. Organizations that purchase energy themselves think: we’ll see prices drop significantly, and it will eventually return to 2021 levels. That is not very likely given the structural changes in the energy market. You might end up being disappointed.”
So waiting isn’t necessarily smart, but what should you do?
“For PowerQ it is continuous coaching. Check: what products are on the market, what are the possibilities for tenders? Talking to various parties about the options. Be flexible Everything for the best deal for our customers. We know that on the daily market, you pay a significantly lower rate for electricity on some days than on others. But also that you might pay even less if you purchase now for 2027. Then you still have to take into account the energy tax that is added. And check carefully what risks you run.
PowerQ uses a stop-loss model; we spread the risks. We adjust the parameters appropriately for each delivery year. If you think in advance about how you are going to purchase energy smartly, you will be much better off than if you only act when prices start to fluctuate.”
There are voices saying that the energy crisis also has positive aspects: we are being forced to live more economically. What is PowerQ’s view on this?
“Gas consumption was considerably lower in 2022 than the year before, according to research by Statistics Netherlands (CBS). The electricity consumption also something. Due to the high prices, people are operating slightly more economically. That is positive for the climate, of course. On a somewhat smaller scale, but still a lot of fun: I have never been asked so often to explain my profession to a CFO or a board of directors. What has changed in the energy market and what are the consequences? How do you stay on course in a turning market? “Not only purchasing and real estate managers want to know this, but now directors too.”
What other energy trends do you see, besides price developments?
“A term that perhaps no one had heard of a few years ago has now suddenly become part of everyday life for PowerQ: congestion management. In large parts of the Netherlands, new companies cannot get connected due to capacity problems on the grid. On the capacity map of the Netherlands you can see that there are entire areas red or orange for both consumption and return of energy. As a company, you need to have a high degree of self-organisation capacity to be able to open a new location or install additional solar panels.
PowerQ sees a solution in a group of companies making joint agreements with the grid operator. One company can then use the excess capacity of the other company. Now that the new Energy Act is delayed, such testing grounds may be interesting.”
Is there any news regarding solar panels, batteries and charging stations?
“There is currently a lot of attention to the problem of non-synchronization. The times when electricity is generated do not coincide with the times when electricity is needed. Batteries seem like a good solution for this, but in certain parts of the Netherlands you also run into grid congestion. A new option is to combine solar panels with charging electric cars. Nowadays there is an interesting arrangement for this with HBEs (Renewable Fuel Units). There is a revenue model and you demonstrate that you are engaged in socially responsible entrepreneurship.
In terms of solar panels: the business case is still very good. Payback periods of around 5 years are common. For healthcare locations that serve as residential locations, VAT has even been 0% since this year. “We at PowerQ will be carrying out a number of attractive solar panel projects in the near future, where we will try to better align demand and production.”
In what way is PowerQ itself moving?
“People who come from the technical university are keen to contribute to the energy transition. PowerQ has recently started offering these graduates a skills program, a kind of
traineeship, which prepares them for the business world in terms of content and skills. This has enabled us to hire many new people. Also nice: thanks to these new colleagues, we now have approximately the same number of women as men working at PowerQ.”
Would you also like to work in the interesting world of energy? View our vacancies.
About the director
Loek is the general manager of PowerQ and has been active in the energy sector since 2001. He has gained extensive experience in project development as well as in sourcing and trading with several players in the European market. In recent years, Loek has increasingly specialized in the field of innovation and energy transition. You can contact him with all questions about energy, purchasing, project development and energy transition.
