Theatre Green Book OPERATIONS Toolkit –
Energy Purchasing
With thanks to James French, NT Deputy Finance Director and Katy Di Gravio, Operations Administration Manager at the Old Vic.
For latest guidance on procuring renewable energy, see the UK Green Building Council’s website. You may also find it useful to look at the Pilot Version of the UK Net Zero Carbon Buildings Standards, published in September 2024.
Guidance on Energy Purchasing will vary depending on the size, location and priorities of your organisation. However please see below for some advice to get started if you are considering updating your energy contracts in an effort to be more environmentally mindful. The UK government has previously declared 2035 as the target date for the full decarbonisation of the UK grid, but it is currently uncertain if this will be achieved.
Things to consider when thinking how to purchase energy:
- Some organisations are able to ‘team up’ to purchase electricity and gas collectively, which might be worth considering if you have close connections with other, similar theatres or venues.
- Larger or medium-scale organisations often work with a broker to buy energy for the next three or so years (hedging). This can help to protect against fluctuations in energy prices.
- If changing energy supplier, you should check if they are able to provide the features you want. For example, only some suppliers are able to put energy generated from solar arrays back into the grid, something to consider if you have or intend to install solar on your roofs.
- Remember, whatever size you are, you can ask your supplier or broker questions to make sure you understand what they are offering. Some brokers can also offer suggestions or guarantees on financial savings. Ask if your broker can create reports for you on financial and carbon savings.
- Consider what data you need: some companies want half-hourly energy use reporting, and some energy suppliers aren’t able to supply this.
- If you are a large company, you may need to look at carbon reporting via SECR. See here for an explainer.
Energy infrastructure:
- Are you able to create a plan for removing gas from your buildings’ systems? This may take time, but might be something worth planning for if you haven’t already.
- Heat pumps are increasingly being installed in residential and commercial buildings. These can be noisy and hard to place, but it is worth investigating if they would work for your organisation.
Assessing renewable credentials:
- Some energy suppliers offer REGO (Renewable Energy Guarantees of Origin) certificates which are certificates proving that the electricity generated has come from a renewable source. These can be expensive and, whilst they may encourage energy suppliers to consider renewable generation, they don’t necessarily directly contribute to the investment in, or building of new renewable energy sources.
- Some energy suppliers will include biomass in what they consider as ‘renewable’. Whilst this is technically true, it is worth researching what is meant by ‘biomass’. For example, some energy suppliers ship wood chips internationally, which are then burnt.
- If you, or a group of organisations you are part of, are large enough, you may be able to explore Corporate Power Purchase Agreements. This is where you make an agreement directly with a solar or wind farm where you act as an investor by promising to buy a certain amount of energy from them, usually for a set period of time (eg, ten years). This income certainty then benefits the solar or wind farms by allowing them to approach their bank to gain the loans they need to get started.
What works for your organisation:
- Speak with your Board, senior team or trustees about what your priorities are. Perhaps as an organisation you could consider whether you are prepared to pay a little more for energy, if it comes with sustainability guarantees.
- One thing to consider is, a lot of energy suppliers will include nuclear power as part of a net zero scheme, which some organisations may want to consider in deciding which supplier to go with.
- Remember: energy procurement can take time. To make sure you get the best prices and can have time to interrogate what you want, both internally and with brokers, make sure you are starting the process several months/half a year before your current energy contract runs out.
Useful links:
- EDF and Octopus are energy suppliers working to build new windfarms.
- Good Energy buys their electricity from small generators and is a certificated B Corp.
- TEC is the energy broker frequently used by universities in the UK. They do energy reviews.
- Ecotricity have set up a Live Event Energy Scheme – more information here.