A KPMG Advisory Webinar

Energy SourcingA KPMG Advisory Webinar

2 July 2020

2©2020 KPMG Advisory, a Belgian CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. www.abcal.org

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Document Classification: KPMG Confidential

• Will the large debts weaken the recovery out of the crisis?

Could it trigger a financial crisis? • Will this fundamentally change financial management?

• Will it increase ever more focus on operational efficiency with the

help of technology?• Will it boost inequality between competitors and trigger (distressed) M&A?

7. Debt Burden (States & Companies)

• Will countries increasingly look inwards for prosperity (and limit the mobility

of goods, services and people)? • Will regional and national borders be strengthened?

• Will this open up business opportunities or limit expansion? Where should

growth come from and how will it influence investment decisions?

8. Globalization

• How will business continuity planning be bolstered to ensure resilience in

future crises? • How will enterprise risk management need to adapt?

• How to increase responsiveness and agility of an organization in view of

future shocks?

5. Continuity and Resilience

• Will the imbalance in supply-demand of specific skills persist?

How to source labour? How will labour migration look like? How does the education system need to respond in

cooperation with in-company training?

• (How) will (temporarily) displaced jobs come back?• Will automation accelerate? Will outsourcing change?

• What (different) labour skills will be required?

2. Labour Force

• Is this the tipping point for the dominance of the digital economy over the

physical economy? Will consumer behaviour change permanently?• Will there be a permanent change in spent of product categories (food –

travel – leisure,..)?

• Will there be an acceleration in the trend of the “conscious customer” (green; fair; healthy; local)?

• Will personalized & data driven and seamless omni-channel (shop-web-chat-

delivery-customer service) interaction with the customer become the norm?

4. Change in Customer Behaviour

• Does remote work -supported by technology- becomes the new normal?

• What will be the impact if business travel becomes the exception?• Will the crisis lead to a different perspective on the organization of

work to ensure a better work-life balance?

• How does the management of teams needs to adapt?

1. Ways of working

The COVID-19 pandemic is changing our lives

• Will the significance of having a clearly articulated purpose become more

important for shareholders, suppliers, customers and personnel?• Will ESG be core to how businesses recover? Can this be done

while sustaining desired economic outcomes?

• Will changes in customer behaviour bolster the evolution towards more sustainability-oriented business propositions?

6. Purpose, ESG

• Will we buy from the same suppliers, through the same

intermediates and will the logistic chain change?• Will we have another purchase risk model?

• Will local production increase based on personalization of products?

3. Supply Chain and Manufacturing

Key Themes and the

Questions they raise



1. KPMG Services

2. Challenges

3. Market Intelligence

4. Source-to-Pay Optimization

5. KPMG & BidEnergy

Agenda

KPMG Services KPMG Services

Challenges

Market Intelligence

Source-to-Pay Optimization

KPMG & BidEnergy



Comprehensive Procurement Advisory Services

STRATEGY - TOM TRANSFORMATIONS & TECHNOLOGY ENABLEMENT

— Target Operating Model Implementation

— Technology Implementation

Value is enhanced through strategizing & transformations, technology enablement and advanced data and analytics, driven by project management

6

PURCHASE TO PAY OPTIMIZATION

— Requisitioning & approval process

— Ordering & Receiving process

— Invoicing & payment process

Value is delivered to the bottom-line through procurement operations in the purchase to pay process, that maximizes visibility and drives contract compliance

5

VALUE MANAGEMENT

— Value Levers for Spend Reduction

— Scenario Analysis & Building

— Supplier Value & Relationship Management

Value is managed through the supplier & contract management and proactive, calibrated relationship development

3MATURITY ASSESSMENT &

— Procurement Quickscan

— Maturity Ranking & Fit Gap Analysis

— Operating Model Analysis & Redesign

PROCUREMENT ACADEMY

— Requirement & Competency Assessment

— Training Design & Delivery

— Talent Sustainability & Management

The Value baseline is determined through organizational and competence review, by continuous internal assessment and talent management

1

SOURCE TO CONTRACT

— Sourcing methodology & process

— Tendering, negotiating & contracting process optimization

— Contract Life-cycle Management

Value is generated through sourcing: tactical sourcing, tendering & negotiations based on Total Cost of Ownership

4

Value is identified through spend analysis and category management: spend categorization, category planning incl. demand management & market analysis & sourcing strategies

SPEND ANALYSIS &

— Data extraction, cleanse & consolidation (spend cube)

— Data categorization & enrichment

CATEGORY MANAGEMENT

— Category strategy, risk & governance

— Category plans

— Sourcing Strategy

2

Strategy & TOM Transformations

Technology Enablement

Maturity Assessment &

Procurement Academy

Value Management

Spend Analysis & Category

Management

Purchase to Pay

Optimization

Source to Contract

Optimization



KPMG’s Energy Sourcing Services

Energy Sourcing &

Renewables Strategy


Demand Optimization

ENERGY SOURCING & RENEWABLES STRATEGY

Reducing the carbon footprint and increasing the use of renewable energy sources has become a key topic for companies. Our Energy Sourcing services aim to support corporates and public sector clients in their transition to a renewable energy sourcing model.

KPMG offers a structured approach and support in drafting your companies’ future energy sourcing strategy, in the tendering and procurement process and in valuating the new contract types.

As an example, KPMG can support you with the business case for the selection of the right sustainable solution in line with your business strategy:

— Certificates

— Corporate Power Purchase Agreement

— Renewable energy through self-generation

SOURCE-TO-PAY OPTIMIZATION

To support you in delivering consistent and reliable results, KPMG has been developing a Strategic Partnership with BidEnergy since 2017.

The alliance aims at supporting organizations with the following activities for the procurement of electricity, gas and water:

— sourcing events

— contract management

— spend data management

— cost control for the procurement of the gas and electricity category

DEMAND OPTIMIZATION

Energy efficiency projects lead to a reduction in the consumption of energy, energy bills and CO2 emissions.

Most projects are supported by technology improvements and usually cover:

— Equipment enhancement (e.g. smart meters installation)

— Analysis of demand side response possibilities (to ‘shape’ demand and shift usage to off-peak times)

— Analysis of local battery / storage options

— Awareness to reduce usage

Challenges KPMG Services

Challenges

Market Intelligence


KPMG & BidEnergy



Main priorities of procurement organizations are evolving

Source: Sustainable Procurement Barometer 2019, Ecovadis

Delivering on corporate sustainability goals is becoming more important YoY. Organizations have largely increased their commitment to sustainable procurement over the past 3 years.

Environmental issues are increasingly becoming a priority for Procurement Organizations’ sustainable agenda. Compliance with new green regulations is reinforcing that priority.

Cost reduction, a topic at the top of CPOs’ agenda over the past few years, is no longer seen as the key priority of Procurement Organizations.

Compliance to regulations and risk reduction are seen as the most critical success factors for Procurement Organizations.

Market Intelligence KPMG Services

Challenges

Market Intelligence


KPMG & BidEnergy



The 4Ds of the Energy Industry

Decarbonization

Renewable technology costs are reaching grid parity

Regulation – CO2 Greater demand for power due

to the increased adoption of electric vehicles and building heating

Transition away from fossil fuel sources

Democratization

Increased engagement by end-users in the electricity market (e.g. generation, storage and trading of electricity)

Decentralization

Increased adoption of distributed energy resources (DERs), distributed storage, energy efficiency and demand response

Reduced need for centralized generation and supply as customers become more active in buying and selling electricity

Digitalization

Growth in the adoption of digital technologies enabling communication and data across the grid (e.g. smart meters, Internet of Things sensors, remote controls and automation etc.)

SMART technology and consumer-tailored solutions are rapidly penetrating



Global initiatives to reduce greenhouse gases such as the Paris Agreement

Translation of the Paris Agreement into the EU Clean Energy for all Europeans package (CEP) and the EU Green Deal

Sustainability targets and energy

2050

2030 - 40% Greenhouse

Gas Emissions

+ 32.5% energy

efficiency

+ 32% use of

renewable energy

+ 15%

interconnectors

Net-zero Greenhouse

Gas Emissions

Target to be

determined in June

2021

> 80% of electricity

from renewable

energy sources

Completion of the

Trans-European

Transport and Energy

network

2030-35% Greenhouse

Gas Emissions in

Non ETS

+ 15% primary and

+ 12% final

17,5% renewable

energy compared to

total energy use

Strengthen existing

interconnectors

EU targets

BE targets

Context



Sustainability targets and energy | CEP versus Green Deal

Business

outcomes

European

Green Deal

Framework for achieving

Climate target for 2030

Climate-neutral Europe by 2050

Necessary energy transition

Better matching of available technological and financial resources

Broader scope than the EU Clean Energy Package

Circular economics, digitization and mobility

Opportunities with regard to taxation

Help countries transition their tax system towards a well-designed and

fair transition budget

E.g. CO2 taxes

Aim

Further improve technological opportunities

Cooperation between different policy areas

Consistency in climate regulations such as the EPBD, EED etc.



BE energy sector key changes | Overview

2020

2023

2025

2028

2030 European

targets

Further RES

development

-4 GW nuclear

-2 GW nuclear

2,3 GW

Offshore

Nemo Link

ALEGrO

Source: Elia Adequacy and flexibility study

Interconnectors

Nemo Link: interconnector between Belgium and the UK

ALEGrO: interconnector between Belgium and Germany

Nuclear phase-out

Partial phase out in 2022 and 2023

All reactors closed by the end of 2025

Contested by both industrial actors and some political actors

Extension of Renewable Energy Sources (RES)

New RES investments initiated as of 2017 (offshore wind)

Target date to be operational: 2028

Main drivers changing the Belgian electricity system Timeline



Actions to lower the carbon footprint | Zoom in on RESEnergy mix 2019 {%} Future outlook

Expected increase in renewable energy will be primarily in solar energy, offshore wind energy and onshore

wind energy.

- Onshore wind is expected to increase gradually every year

- Offshore wind capacity will increase to 4 GWh by 2028 (as announced in 2017)

The future increase in renewable energy capacity will provide opportunities to the energy sector and corporates

48,8

27,2

5,5

4

4,2

12,5-2,1

Nuclear Gas Offshore

Onshore Solar Others

Imports

Source: Elia Adequacy and flexibility study

Source: Elia



Actions to lower the carbon footprint | RES & storage capacityBackground Future outlook

Energy storage is a key enabler of the energy transition to renewables

Less predictable electricity output from renewables requires alternatives/backup

Storage solutions

Classic fossil fuel systems

Storage allows to optimize demand and minimize costs

(load in off-peak hours and release energy during peak hours)

The technologies used in batteries is improving

The price of batteries is expected to drop significantly in the coming years

The transition to renewables goes hand in hand with an increase in storage capacity



Stimuli to move to green electricity | EU emission trading system

Set up in 2005 and focused on lowering the carbon footprint of heavy energy-using installations (power plants and industry)

Covering 45% of EU greenhouse gas

CAP: Maximum CO2 emission allowed per company (= free allocation)

TRADE: Company can emit more by obtaining allowances via trading

Trading with other companies

Obtaining via auctions

Heavy fines imposed in case of non-compliance

In 2020, emissions in scope of the system dropped by 21% compared to 2005

In 2030, the emissions should be cut by 43% from 2005 levels

Pushes the most polluting installations out

CO2 prices are one of the components determining the wholesale electricity price

Scope

Cap and Trade Mechanism

Results



Scope & background

Stimuli to move to green electricity | Guarantees of Origin

Developed in 2007 to guarantee the origin of European energy

(generation technology, geographic location, etc.)

Used to demonstrate the consumption of green energy

Tradable tag/standardized system, developed by Association of

Issuing Bodies (AIB) = European Energy Certification System

(EECS)

No one-to-one link to underlying physical delivery

Trading mechanism determines the market price of the GO

Belgian companies can use both national and European GOs to demonstrate the consumption of renewable energy.

GOs have their own market price.

Power Power

Power Power

Electricity Producer

Guarantee of Origin

Electricity Consumer

Electricity Market

Onshore GOs regional level

SWP énergie (Walloon region)

Brugel (Brussels)

VREG (Flanders)

Offshore GOs national level

CREG

Issuing bodies



Stimuli to move to green electricity | Green certificates

Electricity suppliers obliged to supply a certain quota of renewable energy (= regional quota)

Compliance guaranteed by acquiring green certificates = one certificate per MWh of green electricity

Green certificates push suppliers to offer renewable energy to the end consumers

Set quota

Set quota

Regulators

Offshore wind farm

Onshore green

electricity, generated

in Flanders

Onshore green

electricity, generated

in Wallonia

Producers Suppliers

Flemish

Government

No cross-region

exchange of

certificates

possible

Issues

certificates

Redeeming

quota

TSO/Regional

Certificate Market

Sale Purchase

Walloon

Government

Scope



The role of corporates | OverviewTwo ways of reducing carbon footprint: energy efficiency and sourcing of renewable energy

Sourcing of renewable energyEnergy efficiency

Energy efficiency projects

Projects leading to reduced carbon

emissions due to decreased energy

consumption or less emissions per

energy unit

Corporate Power Purchase

Agreements (PPA)

Off-site installation owned by a third

party supplied through grid

Off-site installation owned by a third

party supplied through direct cable to

facilities

On-site installation owned by a third

party supplied through direct cable to

facilities

Self-generation

On-site or off-site renewable energy

installation owned by the company



The role of corporates | Increasing corporate attention for PPAsWorldwide PPA use EU PPA use

PPAs are commonplace in the USA. A significant potential is present in Europe as well as in Belgium.



The role of corporates | Different types of PPAs

Virtual

PPA

(off-site)

Direct

PPA

(off-site)

On-site

PPA

― Renewable asset built on the premises of the corporate consumer with direct wire

connection to the facility

― High customization possible to match the load profile of the corporate consumer

― The utility or developer can provide shaping services by supplying residual

demand requirements or purchasing surplus power

― Alternative = ‘private-wire PPA’ : asset built off-site with direct cable connection

― Renewable asset located off-site.

― Variants include:

• Multi-buyer PPA: The corporate consumer is a consortium of buyers pooling

their collective offtake to gain a more attractive PPA price

• Multi-asset PPA: The renewable installation consists of a pool of different

installations or different types of renewable technologies, improving reliability

and availability of supply

― The corporate consumer buys power from a utility at retail price.

― The corporate consumer also enters into a separate contract with the renewable

installation to settle the difference between the wholesale price and a contractual

strike price

― No physical transmission of power between the producer and the offtaker,

allowing the PPA to be signed across national borders

Description and alternativesPPA type

PPA type Description Flow diagram



The role of corporates | How can KPMG help in sourcing?

Define strategy Set up tender ImplementationPost-contracting

activities

Source-to-Pay Optimization KPMG Services

Challenges

Market Intelligence


KPMG & BidEnergy



Energy sourcing requires a mix of competencies7.0

Invoice Processing

5.0P-card

Administration

4.0Purchasing

3.0Requisitioning

2.0Supplier

Management

1.0Sourcing Strategy

4.1Vendor

Onboarding and Set-up

4.2Solicit / Track

Vendor Quotes

3.4Demand

Management

3.2Review

Requisitions

3.1Process

Requisitions

2.1Gather Market and Supplier Intelligence

1.1 Develop

Procurement Plan

7.2Validate,

Approve & PostInvoices

7.1Receive Invoices

5.5P-card Analysis

5.3P-card

Reconciliation

5.2P-card Purchase

Approval

5.1P-card Set-up

Sourcing & Contracting Requisition & Procurement Receiving Process Management

Pro

cess

Su

b-P

roce

ss

8.0Reporting and

Analysis

8.1Spend Reporting

& Analysis

8.2SLA Reporting &

Analysis

8.3Operations

Reporting & Analysis

3.3Approve

Requisitions

2.2Vendor Selection

9.0Manage Process

9.1Governance

9.3Maintain Policies

& Procedures

9.2Perform Vendor

Data Maintenance

9.4Communicate

Policies & Procedures

9.5Continuous

Improvement Program

2.3Contract

Negotiation

2.4Contract

Implementation

2.5Contract

Management

1.2Gather Supply Requirements

6.0Receive Goods/ Services

6.3Research/ Resolve

Exceptions

6.2Record Receipt

of Goods

6.1Delivery

Acceptance

10.0System

Maintenance

10.1Maintain Interfaces

10.2Perform Routine System Updates

1.3Match Needs to

Supply Capability

1.4Analyze

Company Spend Profile

7.3Manage

Exceptions

7.4Generate

Payment File

7.5Support Inquiries

5.4P-card Vendor

Payment

4.3Create/Distribute Purchase Orders

Invoicing

Time consuming activities Industry / Technical knowledge required



Your Procurement Plan is the result of various factors

Risk Appetite

Market Volatility

Resources

Market Price

Market Knowledge

Flex-Price Agreement

Fixed-Price Agreement

Hybrid Agreement

Commercial Models

Managed Services

In-house

BPO

Sourcing Options

Load shedding



What are the key requirements to prepare a tender?

Assets Meters Meters Number (EAN) Types of Meters Electrical Power

Usage Profile Peaks Annual Consumption Monthly Consumption Winter/Summer Consumption Peak/Off-Peak Consumption Load Curve

General Location

Contact

Site Addresses

Contact Details



Cost-breakdown : only 1/4 of the total amount is negotiable

Source: CREG, Moyenne Nationale Clients Entreprises, Avril 2020

Text

Text

Text

Commodity

Contributions

Network

Energy Costs account for about 25% of the bill

Taxes & Levies (incl. VAT), Public Service Obligations (PSO) andCertificate Schemes account for about 35% of the bill

Transmission and Distribution Cost account for up to 40% of the bill



The Energy Market is appropriate for e-Auctions

Energy is a popular commodity for e-Auctions since specifications are unambiguous.

Procurement teams can miss out on potential savings as they don’t have the time to negotiate fully with all parties. Using an e-Auction streamlines the process for negotiating with multiple parties over a very short time period, typically 30 minutes. Without the use of e-Auctions, it can leave fewer options on the table, take significantly longer and result in the ‘3 bids and a buy’ approach.

E-Auctions need to be carefully prepared beforehand ensuring all suppliers are aware of the terms and conditions attached to the activity. Retailers have to be trained to ensure tool adoption and competition on the day of the event.

E-Auctions are often perceived as coercive by suppliers and risk damaging the relationship with your suppliers and your brand image.

Geographies, risk profile and activities (factory, office, etc.) can be used to divide contracts into lots

⚠Regional suppliers often look at countries individually

Single-sourcing / dual-sourcing / panel approach

E-Auctions Sourcing Scenario

Contracting

Forecasting – Tolerance model (80%-120%) & Re-forecasting

Indexation Methods

Termination Clauses

Payment Terms



Automated invoice reconciliation process to reduce errorsToday Tomorrow

Governance & Controls

Technological solutions reduce error and fraud through more effective risk management and automated processes

Errors and fraud are common (+/- 5% of spend*)

Erroneous Payments Duplicate Invoices Procurement Fraud

Complex cross-disciplinary process

Contract terms are negotiated by Procurement with the input of stakeholders

Stakeholders are accountable for the execution of contracts

Invoicing process is managed by Account Payables

Technological solutions are used to increase transparency and facilitate invoice versus contract matching

PeopleFunctional Process

Technology

*Annual Fraud Indicator 2017, Center for Counter Fraud Studies



From dubious forecasts to actionable insights Today: Reactive Tomorrow: Proactive

Data enrichment (internal and external) including commodity prices

Decision support, cognitive and machine learning

Predictive analytics to minimize usage of resources

Proactive spend management and risk mitigation

Budget, contract and invoice linkage

Real-time reports; self-service reportingManual spend analysis

Low frequency refresh to retrospective

Relying on supplier data

No easy comparison with market prices or other price drivers

KPMG & BidEnergy KPMG Services

Challenges

Market Intelligence


KPMG & BidEnergy



Listed company in Australia

Operations in Oceania, Europe, North America

> 100,000 meters under management

Energy source-to-pay for large multi-site organizations on a single connected platform

First cloud based solution to integrate an energy specific source-to-pay platform with RPA and ML to give customers a “hands off” experience

Platform operates in multiple Amazon cloud availability zones around the globe

About BidEnergy



BidEnergy’s services

All our services are maintained by complete, accurate and consistent data across the data life-cycle

Our RPA platform continuously verifies all data sources to ensure the highest levels of data integrity

Data Integrity

We collect, validate, address exceptions and pay the bills

No human hand touches the bill We process (collect, parse, validate and

code) thousands of bills in minutes

Bill validation & payments

We track every site opening and closing seamlessly with the cloud

Customers are put on optimal utility and network tariffs (metered access)

Up to 60% reduction in non-energy commodity charges

Portfolio Management & Analytics

Customers gain instant access to their energy and spend data

We generate detailed site level reports at the touch of a button

Automated notifications give customers flexibility in information

Energy & Financial Reporting

Budgeting & Accruals

Base case (0 change from last year) budget established in <1 minute

Forecasting of energy budgets Tracking of actuals vs budgets Immediate generation of accruals at any

point in time

BidEnergy offers a turnkey solution to manage your energy

Market signals and analytics access with customised pricing alerts

Data is ready for rapid market tenders Suppliers bid directly on the platform Real time evaluation and price feedback

to the customer

Procurement & Contracts Management

BidEnergy’s objective is to take the headache of energy management away from our customers whilst allowing them peace of mind that they are paying the most competitive energy rates available to them. All of this done through our intelligent automation platform powered by RPA which sources, validates and benchmarks customers’ energy spend.



BidEnergy has made a multi-million dollar investment in Robotic Process Automation (RPA) & ML for multi-site energy source-to-pay

RPA and ML allows to deliver a superior source-to-pay service to large multi-site organisations much more cost effectively than energy consultants

We have a team of highly specialised energy source-to-pay professionals that augment our army of bots

BidEnergy’s core Intellectual Property



RPA is the only way to maintain clean data cost effectively for a large multi-site energy portfolio

Data is always ready for procurement at any time (procurement requirements –accurate site list, 12 months bills and meter data, contract details)

Energy “Source-To-Pay” requires clean data at anytime



Single portal for any utility (electricity, gas, water, …) in any country for any supplier

No need to ever visit supplier portal again

All historical data in one place, even if suppliers are switched

The portal also supports payment, accruals, budgets, analytics, procurement and reporting

Single Data Portal across all suppliers, utilities and regions



Platform manages the end-to-end advanced sourcing process online

Bid collection and analysis process is automated by the sourcing platform

Contracts are stored on the platform, expiry dates and terms are tracked, and the contract rates are used by the platform for ongoing bill audit and validation

Agile online advanced energy sourcing



RPA improves the speed and accuracy that bills can be collected, parsed, validated and paid

Agile advanced sourcing finds the lowest energy rates available from all suppliers in the market

Automated bill validation finds every bill error no matter how small

Proven benefits of RPA powered energy source-to-pay



POWERED BY:

BidEnergy already counts over 100 customers to date



Credentials BidEnergy

Property and Facilities Management with +40 sites across the United Kingdom. The client has multiple suppliers all billing at different times on different tariffs. The client was struggling to process the amount of invoices on time and regularly suffering from late payment fees

Client challenges

― Monthly pain point to locate and begin to understand multiple formats of bills and consumption data

― Tight timescales to be able to provide this service to their customers and they felt inundated with multiple formats, inconsistencies

― Frequent late payment charges

BidEnergy’s answers

― Delivered a fully automated RPA solution to reduce late payments

― Provided data visualization to the energy management team for energy savings and compliance

― Enhanced validation and carbon reporting, delivering savings and client compliance for end users

Outcome

― £37k

Real Estate

Regional confectionery company with 3 locations across the UK and with an annual energy spend of £500,000. The client had no visibility of a complex energy bill, tariffs were rolled into the unit rate making it challenging for them to understand and interrogate

Client challenges

― Able to visually check their bills, but no real accuracy.

― Required confidence in their internal validation through to payment


― By creating a bill from 1st principles we were quickly able to identify a major issue within the gas bills

― The client was being charged an incorrect conversion factor

― This was raised with the supplier in question, amended and a credit received by the client

Outcome

― £45k

Food & Beverages

The client is one of the world’s leading oil and gas companies. The client was looking to improve their level of control over their energy data, category performance and accounts payable processes.

Client challenges

― Portfolio-wide visibility over a global portfolio of energy accounts for retailing and production.

― Speed, cost and accuracy issues due to disparate AP functions.

― Ability to manage energy spend was hampered by a lack of audit worthy data and limited enabling AP or category management systems.


― Automated audit & process assurance for AP

― Ongoing energy data completeness and quality control

― Expertise driven energy procurement & market analytics

― Reporting automation, sophistication and assurance

Outcome

― $315k to date

Oil & Gas



KPMG’s Proven Track Record

Large Telco company, Belgium, 2019 - 2020

Client challenges

― There was a need for the telco company to revise its’ energy sourcing strategy to underpin the company’s’ ambition to be a leading company in addressing climate change

― Ambition to shift to greener electricity from preferably Belgian renewable sources via a well balanced and future-proof renewable energy strategy. The strategy should create budget security, enhance impact, benefit from technological improvements and further improve the reputation as a responsible company.

KPMG’s answers

― KPMG assisted the telco company in defining a potential energy strategy, aligned to the company’s key objectives and to its electricity needs by:

Providing an overview of the different electricity sourcing options, including pros and cons per solution

Benchmarking the strategy with European telcos and other relevant Belgian peer companies

Drafting a roadmap for implementation

Outcome

― Set of potential energy sourcing strategies with their pro’s and con’s for senior management review and a corresponding roadmap for implementation

Telecommunications

Heineken, The Netherlands, 2018

Client challenges

― Enhance Heineken’s brand by transitioning its electricity and thermal energy consumption to become 100% based on renewable energy sources.

― Mitigate risks of potential cost increases due to the implementation of regulatory requirements and penalties for the use of fossil fuels and carbon emissions.

― Secure access to decentralized reliable energy sources by obtaining access to predictable and local supply to reduce dependence on third parties and mitigate geopolitical and grid stability risks.

KPMG’s answers

― KPMG assisted Heineken by classifying and assessing 288 renewable energy project proposals submitted by Heineken’s largest 19 operating companies.

― To classify and assess projects KPMG developed a Renewable Energy hierarchy score, ranging from: on-site installation owned by Heineken to unbundled energy certificate / Carbon off-set certificate.

― We created a financial model to analyze which projects were most viable under a wide range of scenarios.

― KPMG provided Heineken with global integrated financing, accounting and tax solutions, enhancing financing costs for the to be realized projects.

Outcome

― An assessment of 288 proposals for renewable energy projects allowing Heineken to decide which to implement based on a selection of sustainability, technical, operational, financial and legal considerations.

Food & Beverages

The Port of Amsterdam, The Netherlands, 2018

Client challenges

― Port of Amsterdam NV was working on a project for making energy sustainable and thereby managing supply and demand in-house. To over bridge this project, the Port Authority needed a "regular" agreement with an energy supplier for a maximum of two years.

― The Port of Amsterdam had the intention to innovate the electricity for their shore power connections and start a joint venture/public/private cooperation which would allow the Port of Amsterdam to immediately buy electricity from the OTC market. KPMG advised on the possibilities for this type of cooperation.

KPMG’s answers

― Defining the scope by mapping the number of connections, the types of connections and annual consumption per connection.

― Discussing the type of contract: fixed based on estimated annual consumption or click contract (incl. frequency of clicking and through a broker or not).

Outcome

― After checking the proposals from several different suppliers, they finally decided on a new supplier. This supplier, providing the electricity for the bridging project of the transition to a sustainable energy source, was willing to supply electricity with a limited price increase.

Infrastructure

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

©2020 KPMG Advisory, a Belgian CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Benoît TournantManager

Procurement Advisory

T: +32 (0)471 53 29 04

E: [email protected]

Magali VercammenEnergy Sector Lead

T: +32 (0)474 94 05 90


Harold d’AubrebyAdvisor

Procurement Advisory

T: +32 (0)476 27 18 40


Karen BeullensSenior Manager

Energy Advisory

T: +32 (0)473 41 59 92


A KPMG Advisory Webinar

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