THE DEFINITIVE GUIDE TO

Global Energy
Attribute Certificates
for Commercial, Industrial & Institutional Buyers
Table of Contents

Executive Understanding 4 Ways to

Summary Renewable Electricity Use Renewable
& EACs Electricity
1 2 3

Why EACs Matter: Specific EACs, Current Market

Credible Claims and Their Availability, Spotlight
the Scope 2 Protocol and Their Value
4 5 6
 Life is On | Schneider Electric

Executive Summary
It wasn’t so long ago that C&I buyers were constrained in where and how they sourced
their electricity. The US REC market changed that. C&I purchasers now have a wide array
of choices when it comes to the geographic location, technology type, and co-benefits of
their electricity purchasing. As a result, renewable electricity purchasing in the commercial,
industrial, and institutional sector (C&I) has exploded, bolstered by rapidly falling prices
and improvements in technology.

In parallel, corporate climate disclosure and goal setting programs, such as RE100,
CDP, and the Science Based Targets Initiative (SBTi), have helped to accelerate demand
to rapidly reduce Scope 2 and Scope 3 (supplier-purchased electricity) emissions.
Signatories of these platforms have increased significantly in recent years.

Whether they’re used to help C&I organizations meet 100% of their renewable electricity
needs or as a portion of a larger renewable energy portfolio, Energy Attribute Credits
(EACs) remain an absolutely crucial part of an integrated renewable electricity strategy.
Indeed, Energy Attribute Certificates underpin the foundation of the entire global
renewable energy matrix. EACs remain one of the simplest and most readily available
green power options available to all C&I organizations, regardless of size, location, or
industry type.

This guide will provide helpful direction on leveraging global EACs as a key component of
an integrated clean energy or decarbonization strategy.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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SECTION HIGHLIGHTS

Understanding Renewable
Electricity & EACs
Most C&I purchasers will use at least some volume of EACs at some point in their renewable
energy journey. They are easy to obtain and highly credible when purchased from the right source.

EACs represent the “proof” of clean, carbon-free generation and can be used by C&I buyers to
meet renewable electricity purchasing goals, greenhouse gas reduction targets, and Scope 2
electricity emissions disclosure.

All buyers in the Americas, Europe, UK, Middle East, Africa, Asia, and Oceania that wish to make
green power claims to clean generation must purchase and retire EACs. This is true of C&I buyers
using offsite PPAs, onsite distributed generation, utility green power programs, or simply the EACs
themselves. In the United States, the Federal Trade Commission (FTC) regulates these claims,
and C&I buyers making claims without associated EACs can run afoul of FTC guidance. In other
countries, buyers must be aware of similar governmental mandates.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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4 Ways to Use Renewable Electricity

OPTION Offsite Generation (Power Purchase Agreements) OPTION Onsite Renewable Electricity (Onsite PPAs)
1 2
Large-scale renewable energy projects not physically colocated with Another common form of renewable electricity purchasing is via onsite
the purchaser’s facilities are referred to as “offsite". The predominant installation, generally solar photovoltaics (PV). This mechanism is
way buyers purchase renewable electricity from these projects is via a particularly attractive to buyers with many decentralized centers of
Power Purchase Agreement (PPA), which locks in a fixed price for power operations (such as retailers, banks, fast food chains, etc.) or a large
with the project owner over a specified duration. It provides significant rooftop footprint (although ground-mounted PV is also used by C&I
sustainability impact and is a longer-term solution. organizations).

PPAs have received considerable attention over the past several While the visibility of such projects is high and the solution is long-
years from C&I buyers as they allow these large users of electricity lasting, onsite projects are not for every C&I buyer. There can be siting
to purchase renewables at considerable scale. For many C&I buyers, concerns, capital expenditure constraints, or operational risk that buyers
though, an offsite PPA is not within reach. Generally, this is due to the may choose to avoid. In addition, most C&I purchasers won’t be able
buyer’s creditworthiness or energy load size (although smaller PPA to use onsite generation to achieve more than a fraction of their overall
tranches, via aggregation plays/syndicates, are rapidly becoming more electricity demand due to the smaller scale of these projects.2
available).1

1. For more on offsite PPAs, download our white paper Accelerate Your Energy Strategy with PPAs.
2. For more on how onsite renewables can help insulate a company from policy and legislative
changes, visit http://hub.resourceadvisor.com/renewable-energy/the-unique-political-advantages-of-
using-onsite-renewables-2

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

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4 Ways to Use Renewable Electricity

OPTION Unbundled Energy Attribute Certificates (EACs) OPTION Utility/Supplier Renewables (Green Tariffs)
3 4
As renewables are sold onto the electric grid in the spot market, it is Green Utility Tariffs or Green Retail Electricity Contracts are short-term
nearly impossible to trace them. To compensate, in 1999, projects in solutions utilities offer in many countries that allow buyers to source their
the state of California began producing a certificate of generation to renewable electricity for a period of one to three years. EACs can be
accompany renewable electricity supply. These “birth certificates” bundled with the supply of renewable energy and included in this type
are known as renewable energy credits (RECs) and have become the of contract. Unfortunately, this option is not available in all markets and
standard method for tracking and trading renewable electricity around the perceived impact is reduced.
the world. RECs are used in both compliance (regulated) markets
and by voluntary purchasers to achieve their goals. They can be
bundled with retail electricity via green utility purchasing programs or
“unbundled” and sold as a separate commodity.

Over time and with the development of new global markets, a

variety of certificates have been created. The term Energy Attribute
Certificate refers to this class of established and emerging green power
commodities, regardless of the country of origin. We’ll explore each type
of currently available EAC in the remaining sections of this guide.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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EAC Sourcing Through Renewables Mechanisms

1 3

ENERGY ATTRIBUTE UTILITY / ONSITE OFFSITE GENERATION

CERTIFICATES SUPPLIER RENEWABLE (Power Purchase
(unbundled) RENEWABLES ELECTRICITY Agreements)

2 4
EACs purchased EACs obtained through EACs obtained as a result EACs obtained as a
separately from retail green retail electricity of electricity generated by result of electricity generated
electricity agreements contracts or green cleantech installed at by cleantech owned by
or utility tariffs utility tariffs company's facility project developer

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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EACs have a relatively low barrier to entry for most C&I purchasers. EACs are easy to obtain,
represent zero carbon electricity generation and — when sourced from a reputable provider
and certified by a third-party — are highly reliable. Most renewable electricity purchasers will
at some point need some volume of EACs to meet their goals.
Tax credit funded
solutions
100%
EACs
EACs
75% Onsite
Onsite Tariff
EACs
50% Tariff PPA
Onsite
PPA PPA
25% EACs Tariff

Onsite PPA PPA PPA

0% EACs
Tariff

Year 1 Year 2 Year 3 Year 4 Year 5

It can be difficult for an organization to fully realize its goal using one solution or technology;
we recommend a portfolio approach that ramps to the final goal. Many corporations are
taking advantage of the Inflation Reduction Act to purchase tax credits from developers.
Those same companies then apply the associated savings to fund their global EAC sourcing.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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SECTION HIGHLIGHTS

Why EACs Matter: Credible Claims &

the Scope 2 Protocol
C&I buyers purchase renewable electricity to meet a variety of goals that bring various benefits, including:

Emission Reductions Credibility Low Barrier to Entry

When organizations purchase an EAC, they EACs are labeled a credible instrument A low barrier to entry enables organizations to begin
gain the right to use it to meet renewable in WRI's Scope 2 GHG Protocol, which is their commitment to purchasing renewables due to
electricity purchasing goals, greenhouse gas what reporting standards use for guidance, the ease and relative low risk.
reduction targets, and Scope 2 electricity including CDP, RE100, SBTi, etc.
emissions disclosures. In using EACs to reduce
their Scope 2 emissions, they reduce their
Program Sponsor’s Scope 3 emissions, as well.

Flexibility Optionality Speed Toward Progress

Project location and consumption are not EACs may offer an alternative path to EACs are a fast and relatively easy way to
connected, which allows real estate flexibility renewable electricity for those with too little transact renewables, especially when urgency
and the ability to contract for the most load for a PPA in markets where offsite PPAs to meet publicly stated goals is mounting.
inexpensive product possible within reporting are not permissible.
guidelines.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

Another primary goal for large C&I buyers is reporting and Market-Based Scope 2 Emissions Hierarchy by Contractual Instrument 3
disclosure. Increasingly, C&I organizations are expected to disclose
Emission factors Indicative examples Precision
their environmental impact across a variety of metrics, including
greenhouse gas emissions, water consumption, and climate Energy Attribute Certificates or • Renewable Energy Certificates (U.S., Canada,
action targets. equivalent instruments (unbundled Australia and others)
with electricity, conveyed in a • Generator Declarations (U.K.) for fuel mix disclosure Higher
contract for electricity, or delivered • Guarantees of Origin (EU)
In 2015, the World Resources Institute (WRI) and the World Business by a utility) • Electricity contracts (e.g., PPAs) that also convey RECs
or GOs
Council for Sustainable Development (WBCSD), two leading NGOs • Any other certificate instruments meeting the Scope 2
on environmental impact quantification, issued guidance on Scope 2 Quality Criteria
emissions. These greenhouse gases result from electricity generation. Contracts for electricity, such • In the U.S., contracts for electricity from specified
Entities that report/disclose their emissions must now report on both a as power purchase agreements nonrenewable sources like coal in regions other than
(PPAs)a and contracts from NEPOOL and PJM
location basis and a market basis. specified sources, where • Contracts that convey attributes to the entity
electricity attribute certificates do consuming the power where certificates do not exist
not exist or are not required for a • Contracts for power that are silent on attributes, but
With the goal of creating greater transparency, location-based usage claim where attributes are not otherwise tracked or claimed
reporting mandates that organizations disclose their actual
geographic, operational electricity consumption. Market-based Supplier/Utility emission rates, • Emission rate allocated and disclosed to retail
such as standard product offer electricity users, representing the entire delivered
reporting requires organizations to share the tools they are using — or a different product (e.g., a energy product (not only the supplier's owned assets)
known in the guidance as contractual instruments — to address the renewable energy product or • Green energy tariffs
tariff), and that are disclosed • Voluntary renewable electricity program or product
emissions from this electricity consumption. Organizations must match (preferably publicly) according to
location-based electricity consumption with market-based contractual best available information

instruments, meaning these instruments must be part of the same Residual mix (subnational • Calculated by EU country under RE-DISS projectb,c
electrical grid as the electricity consumption itself. or national) that uses energy
production data and factors out
voluntary purchases
Other grid-average emission • eGRID total output emission rate (U.S.).d In many
factors (subnational or national) – regions this approximates a consumption-boundry, as
3. Derived from emissions factor Table 6.3 in the GHG Protocol see location-based data eGRID regions are drawn to minimize imports/exports Lower
• Defra annual grid average emission factors (UK)
Scope 2 Guidance, available from www.ghgprotocol.org.
• IEA national electricity emission factorse

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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Understanding this reporting mechanism is salient to a review of

EACs because these certificates embody the actual attributes
GHG Emission Scope Chart of clean generation. When clean power is created, the electrons CASE STUDY
themselves join the electrical grid, which combines all generation
Scope 1 sources. Once intermingled on the grid, it is impossible to separate
All direct emissions (e.g., onsite clean generation from any other source.
fuel combustion, company-
owned vehicles, etc.) Since 2008, Intel has been the
The REC was the tool invented to track this generation. As the birth largest voluntary purchaser of
certificate of clean power, it provides the “proof” the electricity is green power in the United States.
Scope 2 from a renewable source. Indeed, it is the REC (or other EAC) that Intel buys 3.1 million MWh of RECs
Indirect emissions from contains and conveys the low-carbon benefits, or environmental annually to complement 100%
purchased electricity, heat, attributes, of that power. Without a birth certificate, clean of the company’s purchased
steam, or cooling electricity. The RECs are part of
generation is merely electrons. Intel’s integrated global energy
strategy, which also includes the
Scope 3 For electricity to be considered clean generation — and to make use of onsite solar PV and micro
Indirect emissions from all other reporting claims on the basis of this consideration — the actual wind turbines, electric vehicles,
sources, including (but not energy must be paired (or bundled) with an equivalent volume solar thermal water heating, and
limited to): onsite lithium-ion storage.
of EACs. As a result, EACs underlie every Scope 2 contractual
• Supply chain instrument. Whether an offsite power purchase agreement or an
• Employee commute onsite distributed generation system, buyers that wish to use their
• Business travel purchase towards CDP reporting, RE100, DJSI reporting, GRI
• Waste disposal reporting, or clean energy marketing claims must procure and
retire EACs. This is true whether the buyer is a C&I, a homeowner
or a utility.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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EACs are one of the most used and widely accepted forms of renewable electricity. CASE STUDY
EACs are generated in a 1:1 ratio where one EAC represents the environmental
attributes associated with 1 MWh of renewable electricity added to the grid.

For many C&I buyers, however, a secondary claim — additionality — is an important

Urged by its customers to provide carbon-free
consideration when purchasing renewable electricity. Additionality is the concept that computing in its virtual and physical data centers,
“but for my action, this would not have occurred”. Additionality is the concept that the Digital Realty developed an innovative strategy
buyer's financial commitment to the project was a critical factor in the project's viability. known as the Clean Start program. The company
purchases RECs on behalf of its digital space
leasees and then retires these RECs, allowing clients
to use the retired RECs to make their own reporting
claims. The program has increased by more than 3x
in a single year.
Digital Realty has also executed a virtual wind PPA
to provide additional, clean energy to its facilities
where lessees of physical data center hosting space
can also take advantage of renewables.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

Additionality has received attention in recent years because additional projects have
the potential to displace carbon emissions and make a real impact on mitigating
global warming and its associated risks.

However, EAC additionality claims are not universal. For example, in some regions of
the United States where states have aggressive renewable energy targets (typically
known as renewable portfolio standards, or RPS), RECs can be highly additional
because of competitive market pressure. The same is true in many global markets
where EAC trading schemes are emergent but there is also high customer demand.
Like electricity itself, EACs are a commodity and subject to the volatility of the free
market.

Additionality Scalability Hedge Market Transactional

Benefits Effectiveness Leadership Ease
Energy Attribute EACs are how we’re creating
Certificates (unbundled)
demand to increase the size of the
Utility or Supplier renewable energy market.
Green Program
— Natasha Tuck, VMware
Onsite Renewables

Offsite PPA

Readily Meets Goals Meets Goals Requires Consideration

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

SECTION HIGHLIGHTS

Specific EACs, Their Availability

and Their Value
EACs are increasingly available across the globe to meet the growing demand of compliance
and voluntary markets.

These instruments convey the environmental attributes of clean generation regardless of the
market in which they are developed, and in many cases, lead to C&I buyers making zero
carbon claims in the geographic regions where EAC markets exist.

C&I organizations should consult an advisor like Schneider Electric Sustainability Business
when procuring EACs globally. A trusted renewable energy advisor can validate the certificates
are certified by one of the global verification standards and their technology type, vintage,
market boundaries, and other criteria are aligned with the best practices from NGOs and
frameworks, such as RE100, CDP, SBTi, GHG Protocol, etc.

4. Learn more about the importance of credible EAC markets at

http://hub.resourceadvisor.com/renewable-energy/international-eacs-a-fact-check-from-trusted-experts

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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Renewable Energy Credits or Certificates (RECs) aggressive, which has the potential to increase the
RECs are the most common of the EACs. Originating competitive market for RECs.
in the United States, they are available throughout CASE STUDY
North America (NAM RECs) and in many global RECs have come under scrutiny from a variety of
markets to track and trade green power. RECs sources because of their inability to fully convey
are a tradeable commodity distinct from the additionality, and because the ways renewable
wholesale electricity itself and represent the positive electricity can be used are widely misunderstood. In 2015, VMware made its first
environmental attributes of the clean generation However, when verified by a third-party such as voluntary purchase of green power:
that has been added to the grid. To claim the use the Center for Resource Solutions Green-e® Energy 6 Million MWh of American wind
RECs. This volume was sufficient
of green power, an entity must bundle RECs with program, RECs are a highly reliable and credible way to address more than 100% of the
purchased electricity. If you have ownership of to indirectly use clean electricity. Indeed, they remain company’s U.S. operational load.
RECs corresponding to the amount of grid-sourced the only way to take ownership of the environmental Today, RECs remain a vital piece in
electricity you consume, you can be assured that at attributes of that electricity. RECs are endorsed and the company’s drive to expand and
least that much power was generated at a renewable used by thousands of organizations around the world, improve renewable energy markets
around the world.
facility and added back to the power grid. including the U.S. Department of Defense, the U.S.
Environmental Protection Agency, and some of the
In the U.S., use of RECs by C&I buyers remains largest Global 500 companies.5
voluntary as there is currently no federal cap-and-
trade scheme or other compulsory mechanism RECs have also played (and continue to play) a critical
(although this is subject to evolution over time as role in driving renewable energy market development.
the legislative environment changes). RECs are They were the first way organizations were able to
also used in compliance markets by utilities to meet make a choice about the type of electricity they were
individual state RPS or other renewable portfolio consuming, and they remain a free market instrument
standards, which exist in 28 states and the District of that enables buyers to make credible environmental
Columbia. State RPS goals are becoming increasingly claims about their electricity use.

5. For more on the distinction between EACs and additionality, download our white paper.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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Guarantees of Origin (GOs) GOs are internationally tracked and traded via the Association of Issuing
EACs are not confined to North America. In fact, the European Union’s Bodies (AIB) and standardized under the AIB’s European Energy
29 markets are the oldest and most predominant. According to RE100, a Certificate System (EECS). REGOs, meanwhile, are tracked and traded
market for renewable electricity refers to an area in which: via OFGEM (Office of Gas and Electricity Markets), Great Britain’s
independent energy regulator.
• The laws and regulatory framework governing the electricity sector are
consistent between the areas of production and consumption; While not interchangeable with North American RECs, GOs can be
used to address C&I operational electricity consumption throughout
• Electricity grids are substantially interconnected, indicating a level of the EU interconnected region. Similar to North America — where RECs
systemwide coordination; and from one state can address load in another state — GOs from one EU
member state can be used for load in another EU member state (if both
• Utilities/suppliers recognize each other’s energy attributes and account countries are part of the AIB single market). This flexiblity allows C&I
for them in their trade of energy and energy attributes. purchasers to meet their environmental and reporting goals throughout
the region, regardless of the location of their EU operational facilities.6
Like RECs, GOs are used to verify that one MWh of renewable electricity
was generated by a clean power facility and added to the electric 6. Schneider Electric Sustainability Business was the first U.S.-based advisor to register with RECs
grid. As with RECs, GOs are created in a 1:1 ratio with renewable International, the administrator of the cross-border attribute tracking system in the E.U.

generation and used to track and trade renewable electricity. A REGO

— Renewable Energy Guarantee of Origin — is the UK’s equivalent to a
GO, though the UK is not part of EU’s single market.

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

International RECs (I-RECs)

Similar to a REC in North America or a GO in the EU and REGO
in the UK, an I-REC verifies that one MWh of renewable electricity
was generated by a clean power facility and added to the electric
grid. I-RECs are used by organizations in many markets to meet
environmental, reporting, or regulatory goals.

In early 2016, the International Tracking Standard Foundation

became the first organization to offer I-RECs compliant with the
Scope 2 guidance and accepted by reporting agencies, such
as GHGP, RE100, CDP, in markets including China and India.
The I-REC standard guarantees attributes purchased from a
renewable electricity facility are not double-counted, double-
issued, or double-claimed. It also offers a public registry (Evident)
to track the product through the chain of custody from generation
to retirement, similar to the role of the Green-e Energy program in
North America. As a result of the I-REC standard, organizations
now have an accepted option for purchasing credible EACs in
multiple global locations. Currently, I-RECs are operational in over
60 countries — mainly across Latin America, Middle East, Africa
and Asia, with 26 active I-TRACK Foundation Accredited Issuers. REC | Green-E GO | EECS or National System REGO

I-REC and/or TIGR National Systems

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

GoldPower® TIGRs
Like I-RECs, GoldPower is an EAC product designed The most recent addition to the international EAC CASE STUDY
for global markets and available in a large and marketplace is the Tradeable Instrument for Global
growing number of countries where established Renewables, or TIGR. Launched in 2016 by APX, a
national EAC schemes do not yet exist. While I-RECs highly regarded, global clean tech registry, a TIGR
were designed as a mechanism for tracking verified verifies that one MWh of renewable electricity was
renewable electricity generation and ownership of generated by a clean power facility and added to Microsoft has long been a leader
the electricity’s environmental attributes, GoldPower the electric grid. APX is a long-standing pioneer of on clean energy. The company was
one of the first to execute an offsite
was designed to actively support the uptake of new registry technologies around the world. It supports PPA, a project that was partially
renewable energy. prominent North American compliance markets with funded by an internal carbon fee.
trusted partners and tracking systems, making TIGRs The company also purchases a
GoldPower has a number of quality features, a highly credible form of EAC. They are supported by wide array of global EACs in order
including: strict due diligence measures and developers, and to reduce both its domestic and
international carbon footprint and
• Social and environmental safeguards projects are vetted closely to ensure their validity. achieve its environmental goals,
earning Microsoft a top spot in the
• Verified and ongoing benefits to local The creation of the TIGR product was initially inspired U.S. EPA’s Green Power Partnership.
communities and environments by a solar PPA executed by Apple, Inc. in Singapore
• A maximum plant age in 2015. TIGRs are currently available in Malaysia,
Taiwan, China, Bangladesh, Guatemala, India,
• Requirements to use recent-vintage generation
Indonesia, South Korea, Philippines, Singapore,
• Strong transparency standards Thailand, Vietnam, and the United States (NAR - North
• An annual audit of suppliers and transactions American Renewables Registry).
similar to Green-e’s

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

Other EAC Types – National Systems buyers to make credible environmental claims in the geographic regions
There are other EACs available in a variety of emerging markets, where they do business. This demand, in turn, carries with it a host
including Mexican CELs, South African zaRECs, Australian GreenPower of valuable co-benefits, including reduced air pollution and improved
and Large-scale Generation Certificates (LGCs), and Japanese human health outcomes, reduced water withdrawals over conventional
J-Credits, Chinese GECs, Taiwanese T-RECs etc. These types of local fossil generation plants, and economic stimulus and job creation.
EACs are considered national credits as part of national systems. These
markets are predominantly in development, focused on compliance Indeed, without a credible EAC market, countries cannot:
needs or extremely high priced for the average C&I buyer. However,
• Demonstrate chain-of-custody (possession of environmental attrib-
market dynamics can change rapidly and require continuous monitoring.
utes, assurance of ownership, and avoidance of double-counting)
The Value of Global EACs • Develop functioning regulatory programs
As globalization continues to expand, and as disclosure mandates like • Confer right to make claims associated with renewable electricity
the Scope 2 protocol continue to drive the conversation on reporting, products from any source
C&I buyers look to emerging markets to meet their environmental and
economic goals. However, a word of caution for C&I purchasers dabbling in global EAC
markets: in general, buyers should recognize significantly different
EACs play a critical role in market development. Like RECs in North products exist for different markets and regions, and that all EACs do not
America, EACs enable and empower consumer choice, often in markets necessarily possess the same features or attributes. Purchasers with load
where electricity choice is constrained or heavily regulated. But more in these emergent regions are encouraged to work with an advisor like
than that, as a free market instrument, EACs create a powerful demand those within Schneider Electric's Sustainability Business to identify market
signal to nascent markets that drives new project development, inspire opportunities and challenges in advance.
consumer confidence in the overall validity of the market, and enable

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

SECTION HIGHLIGHTS

Current Market Spotlight: Europe and North America

EU AIB renewable prices (Wholesale, EUR/MWh)
8,5
EECS (European Energy Certificate System) Guarantees of Origin
• The current market conditions point to a potential opportunity 7,5
to consider purchasing 2024 EECS GOs, given the significant
oversupply and a sharp downward trend in the market. 6,5

• Factors influencing this consideration include the expansion of 5,5

renewable capacity, favourable weather conditions, stronger hydro
reservoir levels across Europe, accumulated volume in European 4,5
auctions and reduced electricity demand.
3,5
• It's worth noting that the current market conditions may present an
opportunity to mitigate risk of prices ramping up again and procure 2,5
current and future generation, while low-cost supply is still available.
1,5
• It's important to be mindful of the highly volatile GO market’s nature,
increased corporate demand over time and uncertainty of the overall 0,5

Jan-22
Feb-22
Mar-22

May-22

Sep-22

Nov-22
Apr-22

Jun-22
Jul-22
Aug-22

Feb-23

Jul-23
Aug-23
Sep-23

Nov-23
Oct-22

Dec-22
Jan-23

Mar-23

May-23
Jun-23
Apr-23

Oct-23

Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
power market.
• Additionally, market expectations suggest an anticipation of demand
catching up with supply, as well as the increasing importance of GOs EU AIB Any Renewable 2024 EU AIB Any Renewable 2025 EU AIB Any Renewable 2026

for tracking electricity origin in the EU.

Internal data based on trading activity and information gathered from the market

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
 Life is On | Schneider Electric

North American National Green-e RECs Green-e National REC RY2024 Spot Price (Wholesale)
• Recent market trends show declining RY20247 pricing due to the sell-off of
expiring RY2023 RECs, resulting in a surplus of RY2024 supply. 5,00

• Current RY2024 pricing has decreased by approximately 30% since the

$/MWh
beginning of the year.
• The end of Q1 through Q2 is historically quiet as Green-e certified sellers 3,00
undergo annual audits during this period.
• The next large amount of spot REC supply will hit the market in mid-August
when Q2 ERCOT generation is minted and becomes available for immediate
1,00
delivery. ERCOT comprises ~40% of CRS (Center for Resource Solutions)

Jul-21

Apr-22
Oct-21

Jan-22

Jul-22

Oct-22

Jan-23

Apr-23

Juy-23

Oct-23

Jan-24

Apr-24

Juy-24
Listed REC capacity. We do not expect any pricing relief until then.
• Potential risks include the current pricing environment, which could prompt
buyers to return to the market earlier than expected. There's also a rising Green-e National REC Price (Wholesale)
demand for low-cost supply in the back half of 2023, leading to the front half
6,00
of 20248, which is already trading at a premium, becoming the next most
cost-effective generation option. Additionally, there's the potential upward
pressure from lower wind and solar generation on prices. 4,00

$/MWh
Get in touch with our experts 2,00
today to learn more about EACs. 7. RY: Reporting Year
8. Back half 2023 refers to RECs generated 2024 2025 2026 2027 2028 2029

Contact Us in H2 2023 and front half 2024 refers to RECs 0,00

generated in H1 2024.

Aug-21

Nov-21

Feb-22

May-22

Aug-22

Nov-22

Feb-23

May-23

Aug-23

Nov-23

Feb-24

May-24

Aug-24
Internal data based on trading activity and information gathered from the market

Executive Renewable Renewable Why EACs Specific Current Market Spotlight:

Summary Electricity & EACs Electricity Usage Matter EACs Europe and North America
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