Procurement Fundamentals3 / 12
Energy Price Risk Management
Hedging; price volatility; protecting against spikes; strategic reserves.
10 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026
Energy prices are volatile, and that volatility is a business risk. Managing energy price risk - protecting against damaging rises while not forgoing all opportunity - is a core part of procurement strategy, drawing on the contract types and active management.
In this lesson
- 01Energy price risk
- 02The goal: managing, not eliminating
- 03Hedging
- 04Spreading purchases over time
- 05Diversification
- 06Efficiency as risk reduction
- 07A risk-management framework
- 08Sources and further reading