Benefits of joint procurement
Battery storage is still relatively new technology for many buyers. There is often a lack of in-house expertise to define technical requirements, compare vendor offerings, and evaluate lifecycle costs and performance. Public procurement or joint purchasing models typically involve lengthy tendering procedures, legal reviews, and coordination between multiple stakeholders. This slows down decision-making and implementation. In addition, public procurement mechanisms have not evolved alongside changes in energy markets. As a result, the procurement process no longer fits the current market conditions.
Battery systems, especially large-scale ones, require strict safety measures. Fire risk, thermal management, and compliance with evolving regulations can delay projects or increase costs. Many organizations are still figuring out how to meet these requirements confidently. Individual municipalities in Finland can have different rules and requirements for battery energy storage systems (BESS), particularly regarding building permits and fire safety.
Purchases by a single municipality can be expensive and complicated. Joint procurement offers cost and time savings. When ten municipalities acquire batteries together, the supplier makes one offer instead of ten separate ones. In addition, joint procurement helps create standardized operating models across municipal borders, for example in building supervision and safety. If ten municipalities order through a joint procurement, only one set of tender documents needs to be prepared instead of ten, and the supplier submits one bid instead of ten separate ones.
“In procurement, especially in small municipalities, the same person may hold multiple strategic, administrative, and operational roles. Procurement timelines can be long and labor-intensive, particularly when the item is broad and new, such as battery energy storage systems. Joint procurement reduces the preparation work for individual purchases when decision-making enables broader, pre-planned packages.”
— Mika Huuhtanen, CEO of Hattula-Kiinteistöt Oy and Development Engineer at the Municipality of Hattula
Similarly, the supplier negotiates with several municipalities at once, reducing administrative work and speeding up decision-making for both the buyer and the supplier. The final price is determined by the average of the series, which lowers the buyer’s risk of price fluctuations.
Procurement can also take into account financing, insurance, and risk management in addition to official regulations. Financing can involve, for example, Finnvera (a Finnish state-owned financing company), and earnings can be realized by participating in Fingrid’s (a Finnish national electricity transmission grid operator) reserve markets with realistic calculations.
“When utilizing joint procurement, municipalities can combine their needs and knowledge, learn from each other, and achieve better quality in their procurement processes. You can save time ja resources by doing your procurement together with other parties that have similar needs to you. With joint procurement you often get more tenders and more competition between suppliers. That usually leads to lower prices. Public procurement can be complicated and therefore it is recommended to use central purchasing body in joint procurement projects to avoid mistakes and delays in procurement process. “
— Jaakko Uitti, CEO of Municipal Procurement Services KuHa Ltd.
In the TREASoURcE project, a procurement model has been found through workshops and stakeholder discussions. This approach is also suitable for framework agreements. Its novelty value lies in sharing risks and prices over time, as well as in price equalization.
Process steps, simplified:
- Identify the need for batteries
- Publish your interest in joint procurement of batteries, for example on hankintailmoitukset.fi and/or through procurement service companies
- Agree on who will act as the aggregator
- Organize workshops
- Fill out the tender documents
- Tendering
- Selection
- Implementation monitoring
One can start with a traditional joint procurement model where the price is fixed for a certain period. As experience grows, each battery can be priced according to the current market rate, with a final price equalization at the end. The model can be inspired by the pricing approach used in the electricity exchange, where at any given moment each unit has its own purchase price. Ultimately, joint procurement is more a matter of attitude—cooperation across municipalities.
8.12.2025 | Jari Saukko (EcoFellows Ltd.)
For more information, contact: jari.saukko@tampere.fi