Blog Post

ENERGY ATTRIBUTE CERTIFICATES: Supporting the shift to sustainable energy

Nov 18, 2023

         #Renewables #Sustainability #Energy Management #Energy Consultancy #compliance


The use of renewable energy is a critical component of the net zero transition for your business. It reduces your scope 2 emissions, in line with mandatory legislation and voluntary reporting standards.

If you can’t produce your own renewable energy, purchasing Energy Attribute Certificates (EACs) is an easy, sustainable choice. Using EACs is the only credible and verifiable way to claim renewable energy use.

Within the grid network, a blend of renewable electricity, nuclear energy, and fossil power coexists. Businesses can utilise Energy Attribute Certificates (EACs) to trace the source of their electricity, validate their consumption of renewable energy, and achieve their clean energy goals.




What exactly is an Energy Attribute Certificate (EAC)?


Electricity is not a tangible product; it is a charge that must be maintained on a grid. When we buy electricity, we are buying the right to take a given amount off the grid. As green power plants generate a unit of electricity, usually around 1 MWh, and contribute it to the grid, an Energy Attribute Certificate (EAC) is generated. This certificate includes details such as the production date, location, and technology used. Consumers have the option to purchase these certificates, asserting exclusive ownership of the environmental advantages associated with renewable electricity and thereby diminishing their carbon footprint.


Energy renewable certificates - EACs



Why should a business buy EACs?


Energy Attribute Certificates (EACs) serve as records confirming that your business utilises electricity derived from renewable sources. These certificates empower you to minimise your environmental footprint in alignment with your business strategy, enabling support for clean energy adoption without necessitating a switch in your physical power provider.


Furthermore, EACs stand as a key instrument for adhering to the Greenhouse Gas Protocol, enhancing corporate sustainability ratings in accordance with the Science Based Targets initiative, and advancing towards RE100 goals.




Bundled and unbundled: What do they mean?


An EAC can be sold either together with the underlying energy contract or separately. When the EAC and underlying electricity are traded in a contract together, it is described as ‘bundled’. When both are traded in separate contracts, it is described as ‘unbundled’. In either case, the principles remain unchanged and there are two separate product streams: 1. the electricity, and 2. the underlying attributes, as represented by an EAC. Both bundled as well as unbundled use of EACs are valid means of renewable energy consumption.


An EAC may be sold individually or with the underlying energy contract. A contract is said to be "bundled" if the EAC is included. 'Unbundled' refers to the purchasing of both electricity and EAC independently. Either way, the fundamental ideas are the same with two distinct products: the

electricity and the underlying EAC.





EAC in the world


Numerous EAC systems are in place worldwide as per graph below:




Every system is equipped with its unique set of regulations and a registry structure. The primary geographical markets encompass four main regions:


- Guarantees of Origin (Go): The European Union Renewable Energy Directive (REDII) mandates that both electricity suppliers and consumers employ Guarantees of Origin to record and disclose claims related to renewable electricity in Europe.


- National systems: Nations like the UK, Poland, Australia, Japan, and New Zealand have established their own national Energy Attribute Certificate (EAC) systems. In certain instances, these national certificates can be utilised to record and validate consumption that transcends international borders.


- Renewable Energy Certificates (RECs): These are used in the United States and Canada. In the US, Renewable Energy Certificates (RECs) serve dual purposes, being employed for both regulatory compliance reporting and voluntary consumption.


- International Renewable Energy Certificates (iRECs): I-REC represents a more recent global standard implemented in regions lacking an existing market mechanism, drawing inspiration from the successful practices of North American and European systems. Presently, I-RECs are accessible in Asia, Africa, the Middle East, and Latin America.





How can we help you?



Bramo Energy simplifies how companies procure green energy and provide them with independent advice:



Phase 1: We discuss your goals.


Phase 2: We review your volume of consumption and countries involved.


Phase 3: We advise you on the appropriate EACs.


Phase 4: We arrange the procurement process. We tender and negotiate with several vendors for the most appropriate deal. You can claim the use of renewable energy within your company.









Would you like to know more? 

Our energy specialists can assist you in meeting the deadlines and fully realising the advantages of adhering to compliance.


Feel free to contact us at hello@bramoenergy.com.




More to learn.


01 Feb, 2023
#Procurement #Sustainability #Energy Management #Energy Consultancy
18 Jan, 2023
#Procurement #Sustainability #Energy Management #Energy Consultancy #Utility Invoice Validation #Energy Savings
nuclear power renewable, sustainability, green energy, energy savings
03 Jan, 2023
#Procurement #Sustainability
29 Dec, 2022
#Procurement
04 Sept, 2022
#Sustainability
Vppa
29 Jul, 2022
#Renewables
24 Jul, 2022
#Renewables
Energy Procurement
08 Jul, 2022
#Energy Procurement

Ready to get real results?


Let's talk

Share by: