Energy strategy targets carbon neutrality and supply security

Having an energy strategy is not only essential for achieving our sustainability goals, but also for ensuring a reliable supply of electricity and predictable prices, explains Procurement Director Marco Hoogenes. ‘Our energy strategy targets 80% renewable electricity in 2025 and 100% in 2030. At the same time, the availability of electricity is no longer a given. That makes our energy strategy essential to our ability to do business.’

Royal A-ware's energy strategy was formalised in 2025, but efforts to reduce energy consumption and increase the share of renewable electricity date back years. ‘In the Netherlands, we have maximised the number of solar panels on our roofs, and we have invested in battery storage to utilise as much of what we generate to power our buildings,’ says Marco. ‘As a result, 6.5% of our energy consumption is now self-generated renewable solar energy. Bringing that number up to 80% is only possible through the procurement of green energy.’

Breaking down our energy strategy
That can be done in one of two ways: through Corporate Power Purchase Agreements (CPPAs) or the purchasing of Guarantees of Origin (GOs). ‘CPPAs are long-term agreements with energy companies for the direct purchase of energy from wind and solar parks. These agreements offer stability if managed well. The goal is to match the CPPA with our actual energy profile, so that we use the contracted renewable power when it’s available. CPPAs already account for 3.3% of our energy consumption and we intend to scale.’

GOs are similar, but don't offer the long-term stability of CPPAs. ‘The energy company both issues GOs and sells GOs. GOs are the way we will achieve our target of 80% renewable energy this year.’

A constant puzzle
If it is that easy to substitute electricity from fossil fuels with electricity from renewable sources, why stop at 80%? Why not go straight to 100%? ‘Because securing renewable energy is only part of the challenge', Marco explains. ‘We negotiate energy contracts that reflect not only how much energy we use overall but also our peak demand, with a defined maximum contracted capacity. We have to get it just right. We don't want to exceed our maximum capacity, because we will incur penalties, but we don't want to use too little either, because we risk losing that capacity during our next contract negotiation. Because of grid congestion, companies apply a “use it or lose it” principle.’

'Getting it just right requires close monitoring, forecasting and planning. 'We conduct detailed analyses of our current energy consumption and assess our future needs,' says Marco. 'If we are automating processes at a location, we know we will need more capacity there. Same for expansions. But at some locations, we are already at maximum capacity. There we have to get creative, for example by shifting some production to off-peak hours. It is a constant puzzle.'

On the road to 100% renewable electricity use by 2030, we must manage our existing capacity carefully. 'For example by turning off the air conditioning at the end of the day, but also by reviewing our operations to see where equipment or processes can run more efficiently,' says Marco. As Procurement Director, Marco must balance sustainability with economic viability. And crucially, electricity simply needs to be available. 'Our business is growing, and we want to sustain that growth. In the coming year, I foresee the expansion of our CPPAs, and we will keep reducing consumption where possible.'