Flexible agreements and fixed rates: an inclusive transition for small and medium businesses

The energy transition must be inclusive to ensure that SMEs are also active participants in change. says Simone Demarchi, Managing Director of Axpo Italia, Switzerland’s leading producer of renewable energy and a global player in the trading and marketing of photovoltaic and wind energy. While representing the majority of the Italian entrepreneurial fabric, “SMEs are certainly heterogeneous, also in terms of consumption. This is why it is not easy to identify the right interventions across the board or design unified proposals ». Hence the need to “put professional competence and customized solutions at their disposal to respond effectively to unique and increasingly complex needs”.

Geopolitical shock

Recent geopolitical events have affected the energy markets and, accordingly, the increase in prices has hit small and medium-sized businesses hard.. But it was also an opportunity to rethink their goals in terms of sustainability. For Demarchi, “Having a clear strategy is definitely a way to support the transition goals of an entire country.” Indeed, Italian companies are becoming increasingly aware of their energy options. “The interest of non-energy-intensive companies has also increased significantly in tools that allow for sustainable energy supplies, energy cost stability and the possibilities associated with self-energy production.” Therefore, Axpo decided to support the companies in the transition process.

From ten years to three years

Founded in 1914, today Axpo has more than 6,000 employees and is present in more than 30 countries in Europe, North America and Asia. It is the fourth operator in the free energy market in Italy, where it arrived in 2000, with a turnover of 12.57 billion euros in the fiscal year 2021/2022, and supplies Italian companies with energy worth nearly 5 thousand GWh. To support businesses in becoming greener, Axpo has launched the Green Flexy Ppa (Power Purchase Agreement, Renewable Energy Purchase and Supply Agreements). These allow you to sign contracts of between three and five years, compared to 10 years for traditional PPAs, and have the energy produced entirely from renewable sources, up to 20 GWh, coming from a given plant. “The answer to the need for economic stability for companies at the moment of significant price fluctuations has been,” Demarchi asserts. “Its evolution starts with flexibility by sizing the features of corporate PPAs to suit the needs of smaller companies. Both in terms of time and consumption.

Flexibility

“It represents a way to ensure flexibility in supply, to be able to count on a fixed price for the duration of the agreement and to participate in the construction of new plants for the production of green energy.” Not only that, “we registered a greater demand, even from small companies, for a more direct relationship with the energy exchange”. This is how the Smart Wallet proposal was born, which allows SMEs to change their approach to energy supply and business strategy, as well as to form a new and potential source of savings in the cost of energy purchase. The main goal is actually to free up the show from a single moment of the year, providing greater latitude to seize opportunities in near real time.

new commitments

For Demarchi, “Certainly the curiosity about these tools is very high because they find that flexibility and that control in managing investments that are for power supplies.” They felt they needed.” But to implement a real transformation, Italian companies need time and training. The complexities and challenges associated with these issues still abound, moreover innovations are revolutionizing the way energy is produced, distributed and consumed. “We continue to work on the most innovative and beneficial proposals For energy efficiency: initially installing self-produced photovoltaic systems but also cogeneration and trigeneration, our team is constantly looking for solutions that adapt to changing energy contexts.” First the pandemic and then the war in Ukraine showed that changes can happen quickly and suddenly. The lesson now is that we must not be unprepared but rather respond with innovative and increasingly sustainable solutions. Even small and medium-sized Italian companies must equip themselves with the necessary tools. Exactly from this point of view, Demarchi concludes, “we wanted to collaborate, within the perimeter of our activities, to secure the main backbone of the Italian economic fabric”.