National Express Bus overhauls energy procurement

Bus operator partners with Zenobe and SQE

National Express Bus is to overhaul its UK energy procurement model, enabling the company to reduce costs, manage risk and cut emissions.

The bus company is working in partnership with SQE, an energy supply platform exclusively for large industrial and commercial users, and Zenobe, a specialist in EV fleet electrification and battery storage solutions.

The two-year collaborative agreement provides National Express Bus with an end-to-end power management solution for its electric fleet. SQE’s dynamic procurement model will enable Zenob? to manage 47GWh of renewable energy, supporting National Express Bus’s ambition to achieve a zero-emission fleet.

The power supply solution has enabled National Express Bus to move away from a traditional fixed-price energy contract, which can expose organisations to significant cost risk during periods of market volatility.

The new model facilitated by SQE’s platform allows National Express Bus to purchase electricity through Zenobe’s power procurement team at live wholesale prices, and sell unused energy back to the grid when consumption is lower than forecast. Together, SQE and Zenobe protect the fleet’s energy budget against market volatility, while ensuring energy is purchased, managed and reconciled efficiently.

The approach is suited to National Express Bus’s operational profile, with 80-90% of energy consumption occurring overnight as vehicles return to depots for charging. 

Roy Brewer, head of strategic sourcing at Mobico Group – parent company of National Express Bus – said: “As volatility in the energy market continues, we need to be smarter about how we buy energy. SQE and Zenobe’s approach is a breath of fresh air in corporate energy procurement.

“We’re thrilled to be partnering with SQE – a market disruptor who genuinely understands our needs and has given us the most cost-effective route to energy procurement. Corporate energy procurement is historically complex, but its line-by-line, transparent invoicing – which gives us access to site-specific half-hourly data – has enabled us to truly understand, and report on, where and how we’re using energy.”

Al Wilson, power procurement and renewable solutions director at Zenobe, said: “Zenobe’s coordinated approach with SQE is market-leading in the transport sector and will protect the long-term financial viability of electric bus operations into the future.

“With National Express Bus we are delivering renewable power for 467 electric buses, grounded in a unique new strategy utilising SQE’s innovative supply products and hourly markets, delivering significant savings when compared to more traditional approaches.”

Chris Bowden, founder and CEO, SQE, added: “The UK’s power market is in the midst of a profound transformation – one which is redrawing the landscape for industrial and commercial energy users. There’s an urgent need for businesses to abandon a passive, analogue approach to energy consumption to establish a strategy that manages risk exposure and generates revenue – turning energy into a competitive advantage.”