Case Study: Cambridge Management Consulting helps Telehouse to Design a New Renewable Sourcing Strategy

Pete Nisbet


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By using our expertise to analyse their past environmental commitments in order to project future forecasts


Telehouse is a provider of industry-leading data centre colocation services, with global connectivity and reach. Owned by KDDI, a Japanese Fortune 500 company and one of the top 10 global telecom companies.


Telehouse is acutely aware of the importance of having a robust and consistent renewable sourcing strategy and a clear plan of how it will be achieved as their business grows.


Cambridge MC and its sister environmental consultancy, edenseven, were commissioned by Telehouse to help build their long-term renewable sourcing strategy and delivery structure for their UK business. The aim was to enable greater cost certainty, reduced risk and access to renewable projects that meet Telehouse’s specific requirements.


The Request


Telehouse had four main requests:


1) Outline the current contracting market and the different types of structures available to Telehouse when sourcing long-term renewable contracts


2) To clearly define Telehouse's long-term renewable resourcing strategy, including an outline of the type of technology, terms of contract, pricing boundaries, and operational structures to put in place


3) To create a delivery plan against key timelines and the relevant stages and resources in the process


4) Provide a sourcing model which will satisfy Telehouse's long-term renewable energy requirements


Skills & Knowledge


  • Our consultants provided a detailed review of Telehouse's existing and future contracts, environmental commitments, and energy usage forecasts

  • We proposed a workshop with key stakeholders to outline the background and options relating to long-term renewable sourcing and explain the main drivers and risk appetite relating to long-term sourcing

  • Our team produced a thorough report clearly highlighting the preferred sourcing strategy and contracting requirements for Telehouse's UK business, while also ensuring it is aligned to the wider group's targets and strategy


Outcomes & Results


1. The successful development of a long-term renewable strategy with recommendations to maximise the benefits on offer through direct sourcing of renewable generation via Power Purchase Agreements (PPAs).


2. Minimising Telehouse's long-term market price risk exposure by securing fixed renewable energy.


3. Meeting Telehouse's customer supply chain requirements to access long-term verifiable renewable power.

Case Study

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