Skip to main content

From Ukraine to Iran: why energy shocks are now a permanent risk for charities

By the ACEVO SmartEnergy team

The past few years have rewritten the rules of energy risk. What once felt like rare, short-lived crises are now becoming a persistent feature of the global landscape. From the fallout of the Russian invasion of Ukraine to escalating tensions involving Iran, energy shocks are now systemic, overlapping, and increasingly unpredictable.

For charities, this shift has profound implications. Energy is now a strategic risk that can directly affect service delivery, financial stability, and long-term planning.

The energy crisis triggered by the war in Ukraine marked a turning point. Across Europe, organisations faced record-high prices as gas supplies tightened and markets reacted to geopolitical instability. Governments stepped in with emergency support, but the underlying issue remained: deep exposure to volatile global energy markets.

More recently, instability linked to Iran has placed pressure on one of the world’s most critical energy chokepoints, the Strait of Hormuz. This route carries a significant share of global oil and gas, meaning any disruption quickly translates into price spikes worldwide.

Energy shocks tend to hit charities in three critical ways:

  • Rising operational costs: heating, lighting, and powering buildings becomes significantly more expensive during price spikes. Many charities operate from older or less energy-efficient properties, making them particularly vulnerable.
  • Increased demand for services: as household energy bills rise, more people are pushed into financial hardship. This increases reliance on charitable services, from food banks to advice centres, at exactly the moment costs are rising.
  • Reduced financial flexibility: economic pressure affects donors and public funding alike. The result is a tightening of resources just as demand and costs both increase.

The shift from temporary crisis to structural risk

What makes today’s energy landscape different is not just the scale of disruption, but its persistence.

This new reality makes planning significantly more complex. Budgets become harder to forecast when energy costs can fluctuate dramatically. Fixed contracts may offer short-term certainty but can expose organisations to risk if markets shift. At the same time, delaying investment decisions—such as upgrading buildings or installing renewable energy—can mean missing opportunities to reduce long-term exposure.

In some cases, charities are forced into difficult trade-offs: reducing opening hours, scaling back services, or reallocating funds just to cover energy bills.

Without a strategic approach, energy becomes a reactive cost rather than a managed asset.

From reactive to strategic: the role of ACEVO SmartEnergy

This is where a more integrated approach becomes critical, and where ACEVO SmartEnergy plays a key role.

Rather than treating procurement, infrastructure, and energy use as separate challenges, ACEVO SmartEnergy brings them together into a single, coordinated strategy.

  • Smarter procurement and contract strategy: in volatile markets, timing and structure matter as much as price. ACEVO SmartEnergy supports charities in navigating complex energy markets, helping them make informed decisions that balance cost, risk, and flexibility.
  • On-site generation tailored to real usage: solar and battery systems are designed around how buildings actually consume energy—not just theoretical models. This reduces reliance on external markets and provides a more stable, predictable energy supply.
  • Ongoing monitoring and optimisation: energy management doesn’t stop once systems are in place. Continuous monitoring ensures performance is maintained, inefficiencies are identified, and savings are sustained over time.

By combining these elements, organisations gain greater visibility and control, turning energy from a source of uncertainty into something actively managed.

Adopting a more strategic, integrated approach—supported by ACEVO SmartEnergy in partnership with HSEnergy Group and Energycentric — can reduce risk, stabilise costs, and plan with greater confidence.

Share

Not an ACEVO member?

If you have any queries please email info@acevo.org.uk
or call 020 7014 4600.