Energy Attribute Certificates: Everything You Need to Know for Your Industrial Park
Denali-ep
| 22 de octubre de 2024
Energy Attribute Certificates: Everything You Need to Know for Your Industrial Park
Energy Attribute Certificates (EACs) are market instruments that represent the environmental and social benefits of generating 1 MWh (1000 kWh) of electricity from renewable sources. Although they do not represent the sale of physical electricity, EACs allow industrial park companies to demonstrate that the electricity they consume comes from renewable sources, thereby reducing their Scope 2 greenhouse gas (GHG) emissions.
What are Energy Attribute Certificates?
An Energy Attribute Certificate, or EAC, is a document that provides information about the environmental attributes of one megawatt-hour (MWh) of electricity generated from renewable sources such as wind, solar, and biomass. These certificates label the electricity as renewable, enabling industrial park companies to report lower Scope 2 GHG emissions while demonstrating that their energy consumption comes from renewable sources.
Renewable generators can sell EACs either bundled with their electricity (included) or separately from the electricity supply (unbundled). Both methods are valid and robust ways to track and declare renewable electricity supplies for industrial parks.
How Energy Attribute Certificates Work
Electricity from the grid is the same regardless of how it was generated. Each company or industrial park connected to the national grid draws that physical electricity from the same mix of sources, which includes both renewable and non-renewable energy sources. To reliably claim that renewable electricity is being used, industrial park companies must acquire Energy Attribute Certificates (EACs), which are retired on behalf of the customer and cannot be reused.
These certificates track every 1 MWh of renewable energy from production to consumption and its retirement in third-party registries, reliably demonstrating any claims of renewable energy supply.
Benefits of Energy Attribute Certificates for Industrial Parks
Some of the main benefits of acquiring EACs for industrial parks include:
- Reduction of corporate carbon footprint, contributing to climate change mitigation.
- Financial support for the renewable energy market.
- Public demonstration of the company's environmental commitments through the use of renewable energy, backed by international standards such as SBTi, RE100, and GHG Protocol.
- Flexibility to use renewable energy without needing to invest in infrastructure to generate it on-site in the industrial park.
- Compliance with increasingly stringent environmental regulations.
- Industrial park companies can immediately, cost-effectively, and accurately meet their renewable energy supply goals across all their facilities, including those where on-site renewables or PPAs are not practical.
Types of Energy Attribute Certificates
There are different types of energy attribute certificates depending on the market and region:
- Renewable Energy Certificates (RECs): Primarily used in the United States.
- Guarantees of Origin (GO): Used in Europe.
- International REC Standard (I-RECs): Globally recognized and used in countries across Asia, Africa, the Middle East, and Latin America.
- Clean Energy Certificates (CELs): Specific to Mexico.
These certificates grant rights to claim renewable origin for energy consumption as well as environmental attributes for avoided Scope 2 GHG emissions.
Implementing EACs in Industrial Parks
To implement EACs in an industrial park, the following steps should be taken:
- Assess the park's energy consumption and establish renewable energy goals.
- Select the most suitable type of EAC based on location and local regulations.
- Acquire EACs through reliable and accredited suppliers.
- Retire EACs from the market to demonstrate the use of renewable energy.
- Measure and report progress toward renewable energy goals.
Conclusion
Energy Attribute Certificates are a valuable tool for industrial park companies to reduce their Scope 2 emissions, support the growth of renewable energies, and demonstrate their commitment to sustainability. By acquiring these certificates, industrial parks can flexibly and cost-effectively meet their renewable energy goals, enhancing their competitiveness and reputation in the market.
What are Energy Attribute Certificates (EACs)?
Energy Attribute Certificates (EACs) are market instruments that represent the environmental and social benefits of generating 1 MWh of electricity from renewable sources. They allow companies to demonstrate that their electricity consumption comes from renewable sources, helping to reduce their Scope 2 greenhouse gas (GHG) emissions.
How do EACs work in an industrial park?
EACs are purchased by companies and retired on their behalf to ensure they cannot be reused. Each certificate tracks 1 MWh of renewable energy from production to consumption, ensuring transparency in claims about the use of renewable energy.
What are the benefits of acquiring EACs for industrial parks?
Benefits include reducing the carbon footprint, supporting the renewable energy market, publicly demonstrating the company's environmental commitment, providing flexibility to use renewable energy without on-site infrastructure, and complying with environmental regulations.
What types of EACs exist?
There are several types of EACs, such as Renewable Energy Certificates (RECs) in the U.S., Guarantees of Origin (GO) in Europe, International REC Standard (I-RECs) in various regions, and Clean Energy Certificates (CELs) specific to Mexico.
How are EACs implemented in an industrial park?
To implement EACs, energy consumption should be assessed and goals established, the appropriate type should be selected based on local regulations, certificates should be acquired through reliable suppliers, retired from the market, and progress toward renewable energy goals should be measured.
