The transition to renewable sources of energy is imperative for survival. There also must be mechanisms to ensure that if consumers and businesses want to buy green energy, there is something to say they are buying what they pay for. One example of such a system is the one involving energy attribute certificates. Such certificates demonstrate that the electricity supplied is from renewable sources and the market is transparent and safe.
What Are Energy Attribute Certificates?
Energy attribute certificates (EACs) are tradable instruments that prove the generation of a particular level of renewable energy. They are used to monitor and validate where electricity comes from and ensure it is from renewable sources. EACs are crucial in the market as they offer consumers much-needed insight into the renewable energy market.
How Energy Attribute Certificates Work
- Generation: A renewable energy facility like a Wind Project or Solar Project produces electricity that is fed into the grid.
- Certification: Each unit of renewable electricity produced is entitled to an EAC. This certificate covers the type of renewable energy used, the facility’s location, and the generation date.
- Registration: The EAC is registered in a centrally established database to avoid duplication of EACs.
- Trading: EACs are tradable in secondary markets. Companies can use them to offset their obligations to purchase renewable energy or to fund renewable energy projects.
- Retirement: At this stage, once an organization purchases an EAC to indicate the environmental benefits of the associated renewable energy, the EAC is delisted.
Benefits of Using Energy Attribute Certificates
- Transparency and Trust: EACs offer a means of confirming renewable energy generation that consumers can rely on; they prove that the information supplied by the energy provider can be trusted.
- Flexibility: EACs can be bought from separate sources of electricity supply; this means that an organization can support renewable energy production even when they do not have access to a renewable form of electricity.
- Market Incentives: Through the introduction of a market for EACs, governments and organisations can be encouraged to invest in the development of new renewable energy projects.
Developing a CFE Strategy
Given the importance of organizations concentrating on sustainability, creating a strategy for carbon-free energy (CFE) activity is crucial. Numerous CFE strategies can assist organizations to effectively contribute towards environmental goals as well as demonstrate their commitment to sustainability.
Components of CFE Strategy
- Energy Efficiency: Energy Conservation: Adopting energy-efficient strategies and practices and using energy-efficient technologies to reduce overall energy use.
- Renewable Energy Procurement: Ensuring reliable renewable energy sources through direct purchase, generation at site, and EAC purchases.
- Energy Management Systems: Developing more effective systems to control energy consumption throughout a business’s core processes.
- Stakeholder Engagement: Communicating to employees, customers, suppliers and other stakeholders on the environmental goals or sustainable energy use.
Conclusion
This change in direction towards renewable energy is critical to moving us all towards a healthy future. It is important to recognize that energy attribute certificates are very useful in developing the renewable energy market since they relate to the actual origins of the renewable energy that is transacted. The amount of energy produced from renewable resources also increases, requiring more effective and accurate methods for tracing where exactly it is produced.
