Looking Ahead: Energy Challenges and opportunities for TEC Members in 2026, Adam Clarke

Looking Ahead: Energy Challenges and opportunities for TEC Members in 2026, Adam Clarke

In a challenging year for the sector, collaboration and innovation have been key to navigating an increasingly complex energy landscape.  With rising non-commodity costs, ongoing heightened geopolitical tensions and sustained financial constraints, what is in store for 2026? We sat down with Adam Clarke, TEC’s Managing Director, to look at the challenges and opportunities that lay ahead in the next twelve months.

What were your key takeaways from the TEC Annual Conference 2025?

It was clear from the conference that conditions are tough for our members, and that the need to identify ways to reduce consumption, costs and carbon has never been greater. Waste reduction and behind the meter solutions are key to avoid increasing grid costs. As always, it was great to bring people together face-to-face and see the value of knowledge sharing in developing a collaborative community.

What were the main highlights of the last year for TEC and its members?

We welcomed 12 new members in 2025, and it was great to meet some of them at the Annual Conference. Continued collaboration throughout the year was supported by the growth of our energy and carbon webinar series and the shared sentiment to learn from one another. Necessity breeds innovation, and that certainly seems to be the case amongst our membership. Despite unprecedented financial pressure across the sector, our members remain committed and enthusiastic to deliver their energy and carbon targets.

TEC’s hedging strategy has provided stability despite upward pressure from non-energy costs on budgets. In addition, our Benefits Statement showed that members benefited from a double-digit return on investment for the fourth consecutive year.

What is TEC’s role in the ‘new era of collaboration’ outlined by the Energy and Efficiency Taskforce?

TEC’s role is clear – providing enhanced shared services and leveraging the power of group buying to drive costs down. A good example of this is TEC’s bill validation service, where a small team of experts scrutinise invoices, ensuring accuracy and identifying errors. In 2025, this led to significant savings for our members across our frameworks. Group buying provides deeper discounts with scale and enables TEC to act as a ‘single informed client’, working with suppliers to shape solutions that meet the needs of the sector.  As both the energy and education landscapes transform, those who adapt and adopt new approaches will find opportunities. TEC aims to ensure that opportunities are identified and shared so that members can respond quickly while remaining focused on delivering an excellent student experience.

How are non-commodity charges impacting TEC members and how will this evolve in 2026?

A significant development related to the energy transition has been the increase in the number, range, and complexity of non-commodity charges. These charges now represent around 60% of our members’ bills, and this is expected to increase in 2026.  We will be exploring options to mitigate non-commodity price risks – in line with Clean Power 2030 recommendations – primarily through consumption reduction and behind the meter solutions.  We will delve into this deeper in our upcoming webinar Market Update: Energy Costs Explained.

What will the main challenges and opportunities be for the sector over the next year?

Heightened geopolitical tensions continue to drive energy price volatility, while non-commodity costs are expected to rise further as national networks are refurbished for the future. Navigating sustained financial pressures will remain a significant challenge. As institutions manage major transitions in both education and energy, TEC needs to be nimble and agile, responding to our members’ changing needs. We are well placed to provide the expertise, support and signposting that can help institutions reduce waste, optimise space, and deploy energy load shifting.

What will TEC’s core focuses for 2026 be?

Our unrelenting focus will be on energy price risk management, providing solutions for our members who are balancing the need to reduce costs with budget certainty. Mitigating non-energy cost risk, behind the meter solutions such as enhanced metering, BEMs services, and Corporate PPAs (CPPA), will be key themes in 2026. We will continue to develop our webinar programme, expand our shared services, and develop new ways of reporting. Above all, knowledge sharing will remain at the heart of everything we do as we bring together member insight, TEC’s expertise and trusted partners to support every member on their energy and carbon journey.