SA Business Integrator Volume 12 I Issue 3 | Page 45

ENERGY
Renewable procurement also requires a more sophisticated view of value. The lowest price per kilowatt-hour is not always the strongest strategy.
Ginsberg argues that overall savings depend on price, coverage and risk protection. A low tariff may mean little if it covers only a small share of demand or leaves the business exposed to generation volatility, single-site risk or take-or-pay exposure.
A company must understand the price of power, the share of demand covered, the predictability of supply, the risks inside the contract, and how the agreement will perform under different market conditions.
For finance leaders, this is significant. Electricity price volatility affects budgets, margins, and investment planning. For sustainability leaders, claims about renewable energy have to be measurable and defensible. A company needs to show what it is procuring, how it is measured, what emissions impact it has, and how it supports resilience. sabusinessintegrator. co. za 43