Electricity Procurement for Real Estate Portfolios
NeoBid supports property owners, asset managers and property managers with electricity procurement, energy tendering and energy cost optimization across real estate portfolios.
Transparent Energy Procurement for Property Owners, Asset Managers, Property Managers and Occupiers
Rising electricity prices, volatile energy markets and increasing ESG requirements have made electricity procurement a strategic priority for the real estate industry. At the same time, many organizations lack the time, market expertise and resources required to conduct professional tenders and engage all relevant suppliers.
NeoBid supports property owners, asset managers, property managers and occupiers in structuring their electricity procurement in a transparent, efficient and cost-effective manner. Through digital tendering processes, broad market engagement and data-driven decision-making, we create competition and enable better purchasing decisions.
Why Conduct a Professional Electricity Tender?
Electricity procurement has a direct impact on operating costs, the competitiveness of real estate assets and long-term portfolio performance.
A professional gas tender provides:
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Greater market transparency
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Increased competition among energy suppliers
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Reduced electricity costs
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Comparison of different procurement models
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Lower procurement risks
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Support for ESG and sustainability objectives
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Reduced administrative burden for internal teams
Who Can Benefit from a Electricity Tender?
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Property Owners & Long-Term Investors: Optimize operating costs and manage procurement risks across individual assets or entire portfolios.
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Asset Managers & Institutional Investors: Enhance portfolio performance through structured procurement strategies and greater market transparency.
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Property Managers & Residential Management Companies: Reduce administrative workload and improve supplier management through professional procurement processes.
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Occupiers & Corporates: Optimize energy costs for office, hotel, logistics, retail and healthcare properties.
Why Is Electricity Procurement Becoming More Complex?
Electricity markets have changed fundamentally in recent years. Price volatility, the energy transition, regulatory requirements and growing sustainability expectations have made electricity procurement significantly more complex than it was just a few years ago.
At the same time, electricity costs directly affect operating expenses, tenant satisfaction, leasing performance and overall portfolio returns.
Key influencing factors include:
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Volatile wholesale electricity markets
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Expansion of renewable energy generation
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ESG and sustainability requirements
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Guarantees of Origin (GoOs) and green electricity quotas
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Power Purchase Agreements (PPAs)
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Contract terms and procurement timing
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Requirements of institutional investors
A professional procurement strategy helps organizations systematically address these factors and reduce risks.
The quality of an electricity tender is not determined by price alone. Successful procurement is driven by the right strategy, broad market transparency, and structured competition among suppliers.
Thomas Ruebelmann
Co-Founder & Managing Director, NeoBid GmbH
What Procurement Models Are Available?
Not every strategy is suitable for every portfolio. The choice of the right procurement model depends on risk appetite, budget planning requirements, portfolio size, and market expectations.
Fixed-Price Procurement: The electricity price is fixed for the entire contract term.
Advantages
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High budget certainty
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Simple budgeting
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No ongoing market monitoring required
Disadvantages
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No participation in declining market prices
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Contract timing is critical
Tranche Procurement: The energy volume is purchased in several tranches at different points in time.
Advantages
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Risk diversification
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Reduced market timing risk
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Greater procurement flexibility
Disadvantages
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Higher management effort
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Requires ongoing market monitoring
Index or Spot Market Procurement: The electricity price is linked to current market prices.
Advantages
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Participation in declining market prices
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High flexibility
Disadvantages
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Higher price volatility
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Increased budget uncertainty
Power Purchase Agreements (PPAs) :A Power Purchase Agreement (PPA) is a long-term electricity supply agreement between an electricity consumer and the operator of a renewable energy asset, such as a wind farm or solar park.
Advantages
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Long-term price stability
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Direct access to renewable energy
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Supports ESG and decarbonization objectives
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Reduces energy price risk
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Positive impact on sustainability reporting
Disadvantages
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Greater contractual complexity
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Not economically suitable for every portfolio
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Long-term commitment
PPAs are particularly suitable for larger real estate portfolios, organizations with ambitious ESG targets and occupiers with long-term electricity demand.
When Should a Electricity Tender Be Initiated?
Many organizations only start addressing their energy procurement shortly before their existing contract expires. As a result, valuable optimization opportunities are often missed. As a general guideline:
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18 to 24 months before contract expiry: Strategic market monitoring
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12 to 18 months before contract expiry: Development of the procurement strategy
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6 to 12 months before contract expiry: Tendering process and supplier engagement
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3 to 6 months before contract expiry: Supplier selection and contract award
The earlier the preparation begins, the greater the flexibility in choosing the optimal procurement timing.
Energy markets are complex.
At the same time, there is a lack of transparency, knowledge and resources.
35%
Energy price difference depending on procurement strategy*
High price risks & volatility
Up to 35% difference in energy procurement prices – depending on strategy, timing, term, market access and volume structure. The supplier market is large and opaque. Energy prices are largely determined by market phase, contract structure and procurement strategy. Non-transparent market access and a lack of comparability often lead to suboptimal conditions. In addition, the bundling of consumption volumes and delivery points has a significant impact on pricing, as larger, structured volumes regularly lead to better conditions. Incorrect decisions regarding term, conclusion date or volume structure have a direct impact on ancillary costs.
70%
Operational effort instead of strategic management*
High internal expenditure
A large part of energy and infrastructure procurement (metering points, photovoltaics, etc.) ties up operational resources – instead of generating added value. Analysis, data management, supplier research, tenders and implementation, as well as contract management, are time-consuming and often organised in a decentralised manner. This results in media breaks, coordination loops and delays. Valuable capacities in asset and property management are tied up without any guarantee of better prices. A structured process provides clear relief here.
Contracts awarded without structured market comparison*
75%
Limited
expertise
Many market participants award energy, metering or photovoltaic contracts (electricity from their own roof) without systematically comparing prices. Unclear market mechanisms and a lack of transparency make it difficult to make informed decisions. Valid benchmarks are often lacking to realistically classify offers. As a result, competitive potential is not fully exploited. A data-based comparison provides the necessary basis for decision-making.
Start Quick Check
non-binding & cost-neutral
What Information Is Required for a Electricity Tender?
For a professional electricity procurement tender, only a few basic pieces of information are typically required. In most cases, we only need:
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A short introductory call – Schedule a meeting here
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Your most recent annual energy invoice
Based on this information, we can already provide an initial assessment of tender readiness and identify potential optimization opportunities.
For larger portfolios, we provide a standardized data template that enables the structured collection of all relevant supply point information.
For an initial quick check, recent energy invoices or a simple list of supply points are often sufficient. We support the preparation and completion of tender data throughout the process to ensure an efficient and accurate market tender.
Common Mistakes in Electricity Tendering
In practice, we repeatedly observe similar challenges:
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Starting the Tender Process Too Late: Organizations that become active only shortly before contract expiry significantly reduce their available options and flexibility.
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Limited Market Engagement: Many companies obtain only one or two offers and therefore fail to create genuine supplier competition.
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Focusing Exclusively on Price: In addition to the commodity price, contract terms, flexibility, supplier creditworthiness, and service quality play an important role.
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Lack of a Procurement Strategy: Not every portfolio benefits from the same procurement approach. The chosen model should be aligned with the portfolio's specific objectives and requirements.
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Failure to Bundle Delivery Points: Bundling multiple delivery points or assets often leads to more attractive commercial terms and stronger negotiating power.
Frequently Asked Questions About Electricity Tendering
When Is the Best Time to Start a eEectricityTender?
There is no universal answer. The optimal timing depends on market conditions, contract terms, and the selected procurement strategy.
Can Multiple Properties Be Tendered Together?
Yes. Bundling multiple delivery points often increases attractiveness for energy suppliers and improves negotiating leverage.
Can Green Electricity Be Included in a Tender?
Yes. Sustainability and ESG requirements can be incorporated into the tender process based on individual objectives.
How Many Suppliers Should Be Invited?
Depending on the portfolio and market environment, a broad market approach should be pursued to maximize competition and ensure meaningful comparison of offers.
Are There Any Costs Associated with the Tender Process?
NeoBid is typically compensated by the energy suppliers. Property owners generally do not incur additional costs for the tender process.
What Is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a long-term electricity supply agreement for renewable energy. It enables companies and real estate portfolios to procure green electricity directly under defined contractual terms and can make a significant contribution to achieving ESG and decarbonization objectives.
