This article was first published on WePower - Medium
There are over 50,000 registered data centres in Australia that account for a whole 4% of the country’s energy consumption. Energy is the largest operational cost for data centres (on average 20%), and a large chunk of it is passed on to their customers.
For an industry as energy-intensive as the data centre business, having the option to engage in reliable, transparent, and flexible green energy procurement, is a game-changer.
In recent years, data centres started to balance their energy mix and many have set solid sustainability targets. However, the recent pandemic has led to significant and unexpected fluctuations in demand. Covid19 has shown data centres that they need extreme flexibility and options to quickly ramp their operations up and down. With energy being the biggest cost factor, the way data centres procure energy should offer similar, close to real-time flexibility.
While data centres used to go with the low-cost black energy agreements supplied by retailers offering supply stability and reduced risk, the market has started to change. The more progressive data centres are now looking to meet their energy needs with green energy and can do that by using the WePower marketplace while reducing operational costs, meeting their sustainability targets, and having more flexibility in their energy portfolio management.
Energy purchasing in the WePower marketplace can help manage the exposure to wholesale market fluctuations, depending on the contract structure selected during procurement. This allows for an increase in the renewable uptake through participating in procuring energy for new and upcoming renewable energy projects, and drives down the cost and reduces any financial and back-office challenges.
The barriers for businesses wanting to purchase renewable energy used to be high. Complex and costly legal processes, concerns around the continuity of supply, limited market information, the complexity of negotiations and contracting for ...
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WePower - Medium