In today’s rapidly  changing energy landscape, purchasing energy isn’t just about finding the lowest commodity price anymore. 

Forward-thinking energy managers and purchasers are expanding their focus to include strategies that lower costs, increase energy efficiency, and reduce carbon emissions. 

Here are 5 essential areas to consider when optimizing your facility’s energy purchases: 

1. Conduct an Energy Audit 

An energy audit — often starting with a free walk-through — is a crucial first step toward improving your facility’s efficiency. A comprehensive audit will: 

• Analyze current energy usage 

• Highlight opportunities for energy savings and equipment upgrades. 

• Prioritise projects based on your key factors such as cost, ROI, safety, and carbon reduction. 

Installing an Energy Metering and Monitoring System (EMIS) allows you to track real-time energy consumption, making it easier to spot inefficiencies. Many capital improvements can qualify for provincial and federal funding, helping to reduce out-of-pocket costs while delivering long-term savings. 

2. Implement Commodity Hedging 

Natural gas prices are forecasted to nearly double over the next two years. Since natural gas is a major input cost for electricity generation, electricity rates are also expected to rise. 

Facilities can mitigate these risks by: 

• Purchasing energy supply through third-party suppliers or brokers. 

• Locking in rates through hedging strategies, protecting against extreme market volatility caused by events like hurricanes or global disruptions. 

• Choosing between fixed rates and spot market pricing options based on their risk tolerance and budget predictability needs. 

Hedging provides budget stability and protection against unexpected price spikes — crucial for long-term planning. 

3. Participate in Demand Response Programs 

Facilities can further optimize electricity costs through programs like: 

• Demand Response Programs: Curtail electricity use during peak periods in exchange for financial incentives. 

• Ontario’s Industrial Conservation Initiative (ICI): Reduce your Global Adjustment costs by cutting usage during Ontario’s five highest system peaks. 

To participate effectively, many facilities partner with peak advisory services that help predict when these peaks will occur. 

Other options to manage peak demands include installing on-site energy storage or backup generation systems, further reducing reliance on expensive grid power during critical periods. 

4. Explore Solar Power Opportunities 

Assessing the business case for solar energy has never been more compelling. New incentive programs are encouraging companies to install solar panels for:

• Net Metering: Sell excess energy back to the grid. 

• Load Displacement: Offset internal energy use directly. 

Solar installations not only reduce utility bills but also significantly lower a company's carbon footprint — helping to meet sustainability goals and prepare for a net zero future.

5. Build a Roadmap to Carbon Emissions Reduction 

Start with a Greenhouse Gas (GHG) Reduction Plan to benchmark and assess your current emissions. Key steps include: 

• Implementing energy efficiency and conservation projects. 

• Integrating renewable energy sources like solar and wind. 

• Purchasing Qualified Carbon Offsets or Renewable Energy Certificates (RECs) for any remaining emissions. 

A clear roadmap to net zero helps align your facility with evolving regulatory requirements and strengthens your brand’s commitment to environmental responsibility. 

If any of these are of interest to you, please do not hesitate to reach out to Steve Sabean by phone or text at (519) 577-2362 or via email [email protected]