Fortum delivers electricity and price hedging of electricity, environmental values and electricity certificates to the electricity network company Ellevio. The collaboration includes exchange of skills, expertise in the electricity market and fossil-free electricity.
Ellevio is an electricity network company, which means that they own, operate and develop regional and local electricity networks and distribute electricity to companies and homes in the regions where they operate. Ellevio's electricity network is 7,750 km long and extends in large parts of Sweden. In 2019, Ellevio distributed a total of 26.5 TWh of electricity and employ a total of around 3,000 people.
During the end of 2020 and the beginning of 2021, Ellevio made a major procurement regarding physical delivery of electricity as well as price hedging of electricity, environmental values and electricity certificates where Fortum emerged as the winner. The purpose of the procurement was to secure electricity for grid losses within Ellevio's electricity grid areas and electricity for grid operation. They also wanted to ensure the possibility of securing the desired volumes of electricity consumption and to ensure the price and delivery of environmental values and electricity certificates.
- In this procurement, we placed great focus on efficient processes for trade and administration, but also transparency in pricing and of course our sustainability goals. It is of great importance to us that the electricity comes from the right origin and that is why we chose Fortum, says Magnus Ohlson Hedene, revenue and energy controller at Ellevio.
As electricity purchasing is a complex business, Ellevio was looking for a company that has expertise and capacity in purchasing, cost management and risk management.
- We wanted a supplier who together with us can establish and gradually strengthen a partnership and a long-term business relationship. We want both parties to experience "the good deal", continues Magnus Ohlson Hedene.
- Ellevio is a company that is at the forefront of the transition to a sustainable society. As part of this, they are in need of the deliveries that Fortum delivers, so for us it was strategically right to participate in the procurement of network losses. It was an extremely educational and exciting process and turned out to be a good match between what Ellevio demanded and what Fortum delivers, so I am naturally proud and super happy with the outcome and really look forward to our collaboration, says Rikard Dagerbäck , Business Manager at Fortum.
Brief about the collaboration:
- The procurement includes physical delivery of electricity, including balance responsibility and the opportunity to hedge electricity prices, as well as environmental values and electricity certificates.
- Fortum provides expertise regarding electricity purchases and the electricity market.
- Fortum contributes with proposals for the business development of the collaboration and the agreement.
- Electricity purchases are made from 100% fossil-free sources.
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