The University of Sydney is changing the way education institutions secure energy supply by becoming the first university in Australia to utilise a unique online energy procurement platform favoured by private sector companies to reduce the price they pay for energy.
The online platform, the Australian Energy Exchange which is owned and operated by Energy Action, delivered the University of Sydney an approximate $1.38 million in cost savings on electricity.
The Australian Energy Exchange sees energy retailers bid against one another to supply an organisation’s energy – with the process usually resulting in substantial savings for customers due to the market dynamics involved.
“Rising energy prices and concerns over climate change required the University of Sydney to shift internal thinking and strategies around energy procurement and management,” said Edgar Atienza, Procurement Category Manager for utilities at the University of Sydney.
“By consciously moving away from traditional energy procurement models and seeking out innovative new solutions, we were able to achieve this dramatic cost saving,” said Edgar Atienza.
“This substantial cost saving has only reaffirmed our commitment to identifying other innovative energy management solutions that will benefit the University,” concluded Edgar Atienza.
Energy Action, Australia’s leading energy management firm and owner of the Australian Energy Exchange, managed the e-negotiation of the University’s electricity supply contract during December 2010 when favourable energy market conditions were identified. The University’s contract attracted 16 online bids from six large energy retailers, resulting in approximately $1.38 million in savings on electricity costs over an 18 month supply period.
“The Australian Energy Exchange is one of Australia’s best kept secrets,” said CEO of Energy Action, Valerie Duncan.
“It represents a simple, transparent and cost-effective market process for organisations to get the best price for their electricity supply in a climate of rising energy costs.
“We expect that the dramatic saving achieved by the University of Sydney will encourage other education providers to consider and refine their energy procurement and management strategies,” said Valerie Duncan.
“Energy Action believes many others can enjoy similar savings to the University of Sydney if they take the time to have a look around at the rapidly evolving energy management sector and assess whether services like the Australian Energy Exchange can deliver them a better deal than what they are currently getting,” concluded Valerie Duncan.