Studies

Municipal utilities: significant cost savings with new procurement strategies

With new approaches to power procurement, municipal utilities can achieve cost savings of about 3 to 5% on average and at the same time manage their procurement risks by far more efficiently. To meet the increasing challenges of the high volatility and the complexity of the power purchasing market, energy suppliers have to invest in adequate and comprising portfolio management. This is the result of a recent study by goetzpartners for which power procurement strategies of municipal utilities have been analyzed.

The study also shows that many municipal utilities meet these challenges actively to a certain extent already: More than 80% use the Energy Exchange as an alternative source of procurement, up to 90% are generally wiling to outsource specific power procurement services, and more than 30% use risk capital to optimize their trading margins, the study says.