Frequently Asked Questions

Why Is a Price Comparison Alone No Longer Sufficient?

The energy price is only one component of a sound procurement decision. Equally important are the procurement strategy, market timing, contract terms, price adjustment mechanisms, contractual flexibility, as well as the financial stability and service quality of the energy supplier.

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In addition, growing ESG requirements, decarbonization targets, green electricity and green gas strategies, and reliable energy data for sustainability and investor reporting have become increasingly important. Professional energy procurement therefore goes far beyond securing the lowest price—it optimizes the balance between costs, risks, security of supply and sustainability throughout the entire contract term.

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Should Electricity and Gas Be Tendered Together?

There is no universal answer. Whether electricity and gas should be tendered jointly or separately depends on factors such as contract terms, procurement volumes, portfolio structure and the selected procurement strategy.

A combined tender can reduce administrative effort, simplify procurement processes and create additional competitive advantages with certain energy suppliers. However, separate tenders may be more appropriate where contract terms differ, different procurement models are required or market opportunities for electricity and gas arise at different times.

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NeoBid evaluates the specific characteristics of each portfolio and develops a procurement strategy that balances both commercial and operational considerations.

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Which Types of Properties Benefit Most?

Professional energy procurement creates value across virtually all real estate asset classes. However, the optimal procurement strategy varies depending on property type, energy demand, building systems and portfolio structure.

• Office properties typically have multiple delivery points and significant electricity demand for lighting, HVAC systems, IT infrastructure and EV charging.

• Residential portfolios often consist of numerous delivery points and substantial heating demand. At the same time, many portfolios are transitioning from gas heating systems to district heating or heat pumps.

• Hotels are among the most energy-intensive asset classes. Kitchens, restaurants, laundries, spas, wellness facilities, swimming pools, air conditioning systems and continuous hot water demand result in high electricity and gas consumption. Operating and lease structures also create additional procurement requirements.

• Logistics properties generally have relatively low gas demand but increasing electricity consumption driven by lighting, automation systems, cooling facilities, rooftop photovoltaic systems and EV charging infrastructure.

• Retail properties typically comprise multiple tenants with different consumption profiles and significant electricity demand for lighting, ventilation and refrigeration.

• Healthcare and senior living properties require exceptionally high security of supply due to their 24/7 operation while maintaining consistently high electricity and heating demand.

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NeoBid develops tailored procurement strategies for each asset class, taking into account energy consumption, portfolio size, technical infrastructure, ESG objectives and commercial priorities.

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How Much Internal Effort Is Required?

The internal workload for property owners, asset managers, property managers, occupiers and tenants is kept to a minimum.

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Upon request, NeoBid manages the entire procurement process—from data collection and market tendering to bid evaluation, supplier selection and contract implementation.

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Beyond contract award, we continue to support our clients throughout the entire contract term. With the appropriate authorizations, we manage day-to-day communication with energy suppliers, coordinate contract amendments, oversee delivery point administration and handle a wide range of operational procurement activities, significantly reducing the workload of internal asset and property management teams.

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When Should Procurement Planning Begin?

Ideally, procurement planning should begin 12 to 24 months before existing supply contracts expire. Early preparation provides the flexibility needed to monitor market developments, define the most suitable procurement strategy and identify the optimal market entry point.

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Organizations that only begin the procurement process a few weeks or months before contract expiry are often forced to accept prevailing market conditions, regardless of whether prices are favorable. Early planning enables a structured tendering process, broader supplier participation and—depending on the procurement model—the implementation of phased or long-term purchasing strategies.

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For larger real estate portfolios with complex contract structures or ESG requirements, a longer planning horizon provides significant advantages in terms of commercial performance, risk management and budget certainty.

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Energy Procurement as a Value Driver Rather Than a Cost Factor

Professional energy procurement delivers far more than cost savings. It improves planning certainty, strengthens ESG strategies, increases transparency and provides a solid foundation for informed investment and asset management decisions.

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NeoBid supports real estate companies in establishing energy procurement as a strategic component of successful portfolio management, helping to create long-term value while reducing operational complexity.