LF Energy Summit Panel Recap: Accelerating Energy Attribute Certificate (EAC) Market Transformation
LF Energy Summit 2023 hosted a thought-provoking panel discussion on “Accelerating Energy Attribute Certificate (EAC) Market Transformation” (video follows below). The panel brought together industry experts and champions in the field of granular hourly energy tracking including Killian Daly of EnergyTag, Steve Tuckner of M-RETS, Jemma Green of PowerLedger, and Samuel Cheptou of Granular Energy. The panel shed light on the importance of EACs and their role in driving deep decarbonization. Here are the key points made during the session:
The Need for Granular Energy Attribute Certificates
The panelists highlighted that as the percentage of renewable energy in grids increases, there is a growing challenge of oversupply and curtailment. Existing EACs, which typically operate on an annual matching basis, might not be sufficient to address these issues effectively. Granular EACs with hourly time-stamped tracking of electricity production offer a more precise and scalable solution. This granular data allows for more accurate pricing signals, encourages renewable energy growth closer to consumption centers, and optimizes energy generation based on real-time demand.
Driving Deep Decarbonization
The panelists emphasized the role of granular data in driving deep decarbonization. With the global push for Net Zero and ambitious clean energy targets, it has become imperative to co-locate renewable energy sources closer to consumers. By aligning consumption with production in real-time, granular EACs can effectively tackle the challenges of high electricity costs, grid balancing, and oversupply. Governments and regulators worldwide are recognizing the need to update green definitions to accommodate more granular tracking.
Transitioning to Granular Certificates
The transition from existing EAC markets to granular certificates should be managed carefully to avoid disruptions. Some customers may not be ready for hourly matching, and hence, both hourly and non-hourly EAC markets may need to coexist for a while. Panelists stressed the importance of providing seamless options for dealing with data either as aggregated granular certificates or individual granular certificates to accommodate different customer preferences.
Standardization and Trust
To ensure credibility and trust in the EAC market, standardization is of paramount importance. The panelists highlighted the need for global standardization of granular certificates to avoid confusion and ensure consistency. Clear definitions and transparent processes will be crucial in encouraging participation in the system. Trust plays a significant role in promoting customer engagement, and clear evidence-based approaches should be used in shaping future EAC markets to prevent manipulation by data providers.
Market Transformation and Beyond
The panelists discussed how granular EACs have the potential to transform markets and promote the growth of renewable energy. This opens up opportunities for peer-to-peer energy trading, incentivizes behavior that aligns consumption with renewable energy production, and helps achieve 24/7 clean energy goals. Moreover, the move towards granular EACs could encourage more diverse participation, making renewable energy accessible to a wider range of consumers, including smaller companies and new industries.
