Teesside University is a vibrant campus in northeast England with a history of environmentally-friendly practices, as evidenced by its Eco Campus Gold award. The University has launched its £300m. Campus Masterplan to grow and redevelop the campus over the next decade, including spending on energy and carbon reduction infrastructure.
The rapid growth plans magnified the University’s already complex energy requirements, and they looked for an experienced partner to help procure 26 GWh of energy and to define a price risk strategy that would gain support of the main decision makers across the organization.
To locate the best competitive supply sources, World Kinect organized an energy procurement tender for Teesside's 144 supply points. Next, we conducted a price risk management workshop to determine the University’s accepted risk levels and implemented the price hedging strategy identified at the workshop.
In partnership with Teesside, World Kinect managed the University’s Official Journal of the European Union (OJEU) tenders, a complex and time-consuming exercise required for public-sector energy bids. We ensured the University got the best possible energy supplier that would balance value and risk and meet their specific requirements.
After securing reliable supply, the next step was to structure the price risk management program. A critical part of this transition involved determining what are the price risk objectives of the University. World Kinect held a risk management workshop with key university stakeholders to discuss strategic options and benefits, defined an acceptable level of risk, and confirmed all decision makers were aligned.
Finally, World Kinect implemented a Flexible hedging strategy with Advanced Optimization to support Teesside with the move from long-term fixed positions to a more flexible procurement strategy to allow Teesside to take advantage of market opportunities when energy prices tend to decline.
