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Writer's pictureCasey Martinez

Why We Need Data-Enhanced RECs for the Next Generation of Carbon Accounting and Power Contracts

Updated: Sep 19

Accurate carbon accounting and impactful energy procurement are more crucial than ever in the race against climate change. The PEC Alliance is proud to introduce the Power Emissions Certificate (PEC) Methodology. This innovative solution aims to revolutionize the Renewable Energy Certificate (REC) market by enabling sophisticated Power Purchase Agreements (PPAs) and advanced carbon accounting strategies.


Why PECs are Needed 

Traditional RECs have played a vital role in promoting renewable energy but fall short in several key areas. They measure the quantity of renewable energy generated without considering the actual carbon emissions reduced. This lack of granularity can lead to greenwashing, where annual REC matching can have a limited impact on grid decarbonization. PECs address these issues by focusing on the time and location of energy generation, providing a more accurate measure of carbon impact.


The Benefits of a Global PEC Registry

A global PEC registry offers several critical advantages:

  1. Sophisticated PPAs: PECs enable the creation of more sophisticated PPAs by integrating carbon impact data. This allows companies to procure renewable energy that maximizes emissions reductions, aligning their investments with sustainability goals.

  2. Enables Emissions-Matching: By accounting for the marginal avoided emissions of renewable energy generation and storage discharge, PECs facilitate emissions-matching on a global scale. This ensures that the environmental impact of renewable energy is accurately represented, following the PEC Methodology, leading to more credible matching claims.

  3. Enables 24/7 Hourly-Matching: PECs use hourly timestamps following the EnergyTag Standard, enabling 24/7 matching of renewable energy generation with consumption. A liquid supply of hourly PECs in every market globally will help corporations reach 100% hourly matched at a lower cost.

How PECs Work 

PECs combine carbon impact with other attributes of retired RECs, offering a comprehensive measure of the environmental benefits of renewable energy. The key components of PECs include:


  • Retired EACs: Each PEC is backed by a retired EAC in a local registry.

  • Carbon Impact: Using marginal emissions based on the time and location.

  • Hourly Timestamps: Following the EnergyTag Standard for precise tracking.

  • Additionality and Other Attribute Scores: Incorporate additionality indicators and projects' broader environmental, wildlife, and social impacts.



Advancing Carbon Accounting and Energy Procurement

The PEC Methodology enhances transparency and accuracy in carbon accounting, helping companies avoid greenwashing and make more impactful investments in renewable energy. By integrating advanced analytics and public blockchain technology, PECs ensure that every renewable energy transaction is transparent, secure, and verifiable.


Conclusion and Call to Action 

The introduction of PECs marks a significant advancement in the renewable energy sector. By adopting this standard, companies can drive substantial global impact and contribute to a more sustainable future. Clean Incentive invites all industry players to join the PEC Alliance, participate in upcoming webinars, and collaborate in refining these standards to make a meaningful difference in the fight against climate change.


Stay tuned for the official publication of our whitepaper and the launch of our beta registry. Join us in revolutionizing carbon accounting and making impactful climate action a reality!

 

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