When it comes to controlling energy costs and achieving sustainability goals, two terms often come up: energy procurement and energy management. While they are closely related, they serve distinct functions and require different strategies. Understanding the difference, and how they work together, is essential for any organization looking to reduce energy costs and improve operational efficiency.
Let’s break down energy procurement vs. energy management, and why both are critical to long-term energy success.
What is Energy Procurement
Energy procurement is the process of sourcing and purchasing energy—typically electricity and natural gas—for your organization. It involves evaluating suppliers, comparing contract terms, analyzing market conditions, and timing purchases to secure the best rates and mitigate risk.
Strategic energy procurement leads to substantial cost savings. Rather than simply accepting default utility rates, organizations that actively manage procurement can take advantage of market dips, secure favorable contract terms, and better forecast future expenses.
At Environ Energy, our clients benefit from over 30 years of energy procurement expertise and deep supplier relationships, which allow us to negotiate competitive pricing and tailored contracts that align with each client’s goals.
What is Energy Management
Energy management, on the other hand, focuses on how your organization uses energy once it’s been purchased. It includes monitoring consumption, optimizing building systems, improving operational efficiency, and identifying opportunities to reduce waste or shift usage.
Energy management strategies might include:
- Implementing energy efficiency upgrades
- Real-time energy monitoring and analytics
- Load shifting and demand response programs
- Behavior change initiatives
- Integrating renewable energy or storage
While procurement helps you buy smarter, management helps you use energy smarter.
Why Both Matter
The debate of energy procurement vs. energy management isn’t about choosing one over the other—it’s about understanding that they’re complementary. Procurement helps you lock in the right price and contract terms, while management ensures you’re getting the most value out of every kilowatt-hour or term you purchase.
When combined, these strategies offer a holistic approach to reducing energy costs, managing risk, and advancing sustainability.
How Environ Energy Brings It Together
At Environ, we understand the full picture. We don’t just help clients secure the best energy rates—we work alongside them to manage energy consumption, reduce waste, and build long-term strategies that deliver lasting value.
Environ clients typically save 10%–20% or more on electricity and natural gas supply costs thanks to our strategic procurement approach. And with energy management programs layered on top, those savings can grow even further, all while reducing emissions and improving operational resilience.
Ready to optimize both your energy spend and usage? Let Environ Energy help you build a strategy that combines the best of procurement and management for results you can measure.
