Hotel groups can shift to renewable energy. This is how

The hospitality business faces particular challenges as it attempts to reduce emissions. Perhaps the most important one comes from fragmentation.

Hotel groups tend to have many business units spread across several locations, as opposed to one large factory or data centre. Hence, the biggest challenge is coordinating the purchase of renewable energy across all properties and operations.

To make this easier, hotel groups can aggregate their energy consumption. If a hotel group knows exactly how much energy its units consume in a specific region or country, it can consolidate purchases for each market, harnessing the buying power of its individual hotels and reducing the number of transactions. Retail giants like IKEA show how it can be done with 300 stores in over 40 countries.

Getting started

To get the ball rolling, hotel groups can centralise their sustainability strategy by grouping consumption units. This will make it easier to estimate and finance renewable power purchases.

The next step is evaluating clean energy procurement options in specific geographies. Energy Attribute Certificates (EACs) are the preferred instruments to document clean power procurement and claim reduced emissions. However, EACs take on different forms in different regions.

Ecohz recommends that hotel groups map their operations and familiarise themselves with national and regional renewable power markets. The group can then build a long-term strategy that may include Power Purchase Agreements (PPA) to secure stable energy prices.

Further integrating targets and ambitions across the entire organisation is critical. Procurement, sustainability, and communications teams should collaborate in defining targets and the processes needed to reach 100% renewable energy consumption.

Communication and showing commitment

Communication is integral to emission reduction strategies. Travellers, investors, and other stakeholders now expect companies to switch to renewable energy. This presents the industry with an opportunity to convert environmental actions into stronger brands that attract more guests.

Joining business groups like the RE100 signals commitment to environmental targets. In the hospitality sector, companies such as Vail Resorts, Airbnb, and a handful of others have joined the coalition and set targets to consume renewable energy exclusively. More are sure to follow.

Hotels, often located in beautiful natural places, can also use clean energy to signal genuine actions to protect the environment. As demand for sustainable destinations and experiences increases, hotel groups can further transform the industry by choosing a form of energy that keeps people travelling and protect the places we love to visit.

Ecohz solution

Energy Attribute Certificates

In the grid, renewable electricity is mixed with nuclear and fossil power. Energy Attribute Certificates (EACs) allow businesses to track the origin of electricity, prove the consumption of renewables, and meet clean energy targets.

Preben Munch
Senior Director Sales & Solutions

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Hotel groups can shift to renewable electricity. This is how

Getting started

Communication and showing commitment

Energy Attribute Certificates

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