Why 2026 is a turning point for energy cost management
Energy has always been a big line item for most organisations. But this year, it’s becoming something more: a source of real uncertainty and real opportunity. We’re seeing businesses ask the same question: where can we actually take control of cost? Increasingly, the answer is energy.
Energy is no longer something you just "pay and forget". For a long time, energy was treated as a fairly fixed overhead - something to procure well, but otherwise accept. That assumption doesn’t hold anymore.
With ongoing price volatility, growing electrification, and rising exposure to peak costs, energy is now something that actively needs managing. It is no longer a fixed cost, but something businesses can influence and reduce.
Where the opportunity sits
The encouraging part is that many cost-saving opportunities are already within reach. Organisations taking a more active approach are focusing on:
- understanding how energy is actually used across sites;
- reducing unnecessary consumption and exposure to market fluctuations; and
- aligning contracts with real demand.
Done well, early wins can deliver 10–15% cost savings, often without major capital investment.
While direct energy costs can be managed to reduce operational overheads, the impacts of energy price volatility across value chains can have huge effects on your bottom line. From leasing buildings to upstream energy costs in manufacturing, it’s worth understanding where your risks and opportunities lie.
Why acting now matters
Today, most business leaders see sustainability and decarbonisation through a commercial lens. It is increasingly part of how businesses think about performance. This should, in theory, mean that the business case for climate action is getting easier to make. Therefore, it's worth revisiting old business cases and/or projects that failed to get off the ground. This could be the right time for them to succeed.
Besides, delaying action tends to come with hidden costs:
- inefficiencies continue unnoticed;
- energy is used at the wrong times, at higher prices; and
- savings opportunities quietly slip by.
At the same time, cost control is under increasing scrutiny. Energy is one of the few areas where meaningful reductions are still achievable quickly.
A practical place to start
Most organisations don’t need a full transformation from day one. A simple starting point might be:
- improving visibility of energy use;
- identifying quick operational wins; or
- reviewing whether procurement aligns with reality.
From there, it becomes much easier to build a more strategic approach.
In many cases, the first step is simply improving visibility. For example, we worked with Arla to implement a centralised energy monitoring and targeting platform. This helped them move from fragmented data to a consistent, global view of energy use. It enabled:
- ongoing identification of inefficiencies;
- continuous optimisation of performance; and
- a more structured approach to cost reduction.
Beyond monitoring, there are significant benefits from prioritising performance optimisation, with relatively low barriers to action and rapid rewards.
Linking cost and decarbonisation
What’s changing fastest is how energy cost reduction and decarbonisation are coming together.
In many cases, the same actions that reduce emissions also improve cost performance, particularly when it comes to efficiency and demand reduction.
For example, we supported a global aerospace leader with a costed decarbonisation strategy, delivering £500k annual energy savings alongside a 20% reduction in emissions.
Download the report: Is the business case for climate action broken?
As sustainability projects become larger and more complex, many organisations struggle to secure investment and board approval. Based on insights from more than 30 sustainability leaders, along with commentary and advice from BIP.Verco experts, this report reveals why climate business cases succeed or fail and how to make yours more compelling.
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- How to engage finance, procurement and operational teams more effectively.
- Why businesses should move beyond simple ROI calculations and better quantify resilience, risk and long-term value.
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A must-read for sustainability, finance and business leaders looking to turn climate action into a source of competitive advantage and secure support for transformative projects.
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The takeaway
Energy isn’t just a cost to manage anymore, it’s a lever to improve performance. The organisations that recognise this in 2026 will be the ones that stay ahead.
