Net Zero Transition — Advice to Energy Users

Large energy users face growing pressure to reduce their carbon footprint, manage energy cost volatility, and demonstrate credible progress against net zero commitments.

Meeting these objectives requires a clear financial assessment of the available options, the risks and costs involved, and the most effective procurement and financing structures.

QMPF provides independent financial advice to energy users navigating the net zero transition. Our work in this area draws on our deep experience across the energy space and our understanding of the financial and governance requirements of public sector and institutional clients.

We have advised universities and other public sector bodies on net zero strategies and energy projects. We work closely with estates, finance, and sustainability teams to develop solutions that are financially robust, deliverable, and aligned with our clients’ wider financial constraints.

The Net Zero Challenge for Energy Users

Achieving net zero requires action across multiple fronts simultaneously, including reducing on-site energy consumption through energy efficiency measures; procuring renewable electricity; and managing the transition from gas to low-carbon heat. The financial implications can be material. Capital investment in new equipment and infrastructure; changes to energy procurement arrangements; and the management of legacy contracts and assets must all be carefully assessed and managed within the capital constraints of the balance sheet and wider capital investment needs.

At the same time, there can be significant opportunities for energy users in embarking on this path: on-site generation can reduce exposure to grid electricity prices; corporate PPAs can provide long-term price certainty; and private wire connections and ESCo structures can even produce energy cost savings in some circumstances.

Renewable Energy Procurement

Organisations seeking to procure renewable energy have a range of options available, from renewable energy certificates through to long-term corporate purchase agreements, private wire agreements and on-site generation. The appropriate solution depends on the organisation’s risk appetite, credit profile, consumption profile, and sustainability objectives. QMPF can advise on the full range of options and can support organisations through competitive procurement processes.

Installing on-site renewable generation, typically solar PV, with or without battery storage, and supplying electricity directly to occupiers via a private wire network can deliver significant cost savings and carbon reduction. These arrangements can be self-financed, delivered by an ESCo or third-party investor. QMPF can advise on the financial case for on-site generation projects, including the optimal delivery and financing structure, and can support through any associated procurement process.

Heat Decarbonisation

Decarbonising heat is the most technically and financially complex element of the net zero transition for most large organisations. Options include connection to a district heat network; installation of large-scale heat pumps; and a range of building-fabric improvement measures. QMPF can assist with the financial assessment of heat decarbonisation options, including the development of business cases, financial models, and investment appraisals, and can support procurement of external partners or ESCo operators where appropriate.

Energy Finance and Project Delivery

Many net zero capital projects require structured financing alongside any available grant or subsidy. We have experience advising on different energy financing options available to public sector and institutional clients, including ESCo structures, public-private partnerships, National Wealth Fund and green financing frameworks, and project finance for energy infrastructure assets.

How We Can Help

QMPF can support energy users across the full net zero transition:

• Net zero strategy and options appraisal with a focus on commercial and financial implications;
• Renewable energy procurement including PPA structuring and competitive procurement processes;
• On-site generation advisory, including financial modelling, procurement and funding for solar PV, BESS, and private wire projects;
• Heat decarbonisation advisory, business cases and investment appraisals for heat pump, district heat network connections and ESCo solutions;
• Net zero project financing: debt advisory and financing strategy for energy capital programmes; and
• Green financing frameworks: advice on structuring borrowing under green or sustainability-linked frameworks.