In the logistics and supply chain sector, energy isn’t just a line item in an operating cost report, it can be an operational risk. Refrigeration, blast freezers, conveyors and warehouse HVAC are critical processes and if they are unexpectedly interrupted, it can cost thousands in spoiled product, delayed shipments and emergency fixes. At the same time, running these processes with no regard to electricity prices can drive up operating costs.
That’s why it’s critical for cold chain operators to find ways to counter rising electricity prices, while catering to increasing customer demand for decarbonisation. By utilising onsite energy assets, and taking advantage of cheap renewable energy, your business can gain a competitive edge.
- Move from passive consumption to active optimisation
The biggest wins come from using energy at the right times, not necessarily using less. Wholesale linked pricing and real‑time optimisation let sites shift discretionary loads (defrost cycles, precooling, noncritical processing, equipment charging) into low price windows, typically when renewable energy drives down market prices and network tariffs tend to be lower. Even modest load rescheduling, automated by simple controls or manually as required, can reduce average energy costs and smooth demand peaks. - Use batteries to protect operations and margins
Behind the meter batteries do two jobs for cold stores: they shave peak demand to avoid expensive spot pricing and peak network prices, and if configured to do so, can provide backup and resilience for critical controls and monitoring systems. For many operators, a battery sized for control continuity and peak shaving delivers a faster payback when paired with a wholesale linked electricity plan. - Monetise flexibility through market participation
Cold chain operations have large, controllable loads. Participating in demand response can lower total electricity bills. Additionally, customers could participate in the Australian Energy Market Operator’s reliability mechanisms (RERT), allows warehouses to be paid to reduce load at short notice (subject to eligibility criteria). This initiative rewards facilities that can demonstrate predictable, safe curtailment strategies without compromising product integrity. - Lock in long-term value with PPAs and tailored contracts
For organisations with sustained energy demand, Power Purchase Agreements (PPAs) can offer longer-term price certainty and credible emissions reductions, by linking usage to a real renewable project. Choosing a PPA can reduce electricity costs, support decarbonisation goals and provide long-term value and energy security.
How it works in practice: Harbourside Cold Stores avoids price spikes with demand response
Harbourside Cold Stores, based in Northern Queensland, optimised its energy use at two of its sites with a flexible wholesale linked contract and demand response strategy.
By combining demand response participation and smarter consumption scheduling, Harbourside Cold Stores reduced exposure to price spikes and improved operational continuity. Avoiding high price events helped cut operational costs and supports the local grid during periods of demand strain.
To maximise the benefits of its wholesale-linked contract, Harbourside Cold Stores opted in for Flow Power’s engineering advisory service, Energy Ready.
Through this service, Harbourside Cold Stores learned how to participate in demand response, avoiding high price events and supporting the stability of the local network.
“It’s about targeting your efforts where it’ll produce the most value,” Robert Hall says, “the Energy Ready team has been proactively helping us reduce our consumption at the right times.”
Thanks to the demand response strategy, and the efforts of onsite staff, Harbourside Cold Stores has seen sizeable cost savings through high price avoidance with demand response. The graph below shows an example of successful demand response during a high price event in 2024.
If you’d like a tailored site assessment or modelling for your operations, Flow Power can help design practical, commercial solutions that turn energy from a cost centre into a competitive advantage.
Alternatively, speak to their friendly team exhibiting at stand D19 at MegaTrans 2026 who will be available to answer your questions.
Click here to view more energy solutions tailored for operations and facilities managers.
