Decathlon Group

At a Glance

Industry

Retail and Apparel

Project Type

Financial Evaluation and Planning

Year

2023

Location

Shanghai

Summary

Jiali Dai examined suppliers' electricity cost variations post-green energy procurement.

Goals

Decathlon aims to assist suppliers in green energy retail engagement. To achieve this, Jiali Dai will explore current electricity trading policies, wholesale prices, and post-green energy procurement costs. Her role involves reviewing policies, seeking cost-efficient solutions, comparing renewable and coal electricity expenses, and determining supplier viability for green energy transactions within Decathlon's supply chain.

Solutions

Jiali Dai divided the research process into the following five steps:

  1. Collecting Electricity Trading Policies and Prices from Various Provinces to establish a foundation for gaining an in-depth understanding of electricity markets in different regions.
  2. Organizing Policy Information by categorizing and classifying different policy details. Identifying potential opportunities for reducing electricity costs.
  3. Integrating the aforementioned policies with calculation results to create corresponding electricity trading research reports.
  4. Analyzing Electricity Bills based on the billing information provided by suppliers.
  5. Calculating Cost Variations based on existing green energy prices. Comparing and computing the electricity cost changes for suppliers considering a transition to green energy sources.

Potential Impact

Several suppliers from Jiangsu, Shandong, Guangdong, and Zhejiang participate in green energy transactions.

Green electricity comes with a 3-5 cent premium, significantly raising the cost. However, by signing long-term power purchase agreements for green energy, suppliers can secure stable renewable energy  supply, reduce price fluctuation risks, and partially lower green electricity purchase costs.

Moreover, this significant, long-term collaboration assists suppliers in better energy procurement management and obtaining superior services from electricity vendors.

Furthermore, it contribute to the reduction of traditional energy usage, aligning with the company's low-carbon objectives.


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