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Additionality In Renewable Energy And Carbon Offsets

Many companies working towards achieving net zero targets are already be purchasing renewable energy – the obvious way to go towards sustainable development. But, not all companies go the extra mile to buy renewable energy sources in a manner that will actually put new renewable energy into the grid.

If we want to reach net zero goals and make a real impact, we must create a more sustainable grid and eliminate fossil power generated by fossil fuels. One method to do this is to provide more power.

In this article, we’ll look at the idea of adding value with regard to carbon offsets and renewable energy and carbon offsets, while also highlighting the many advantages for large companies. As an organization you can choose the way you source renewable energy and have the opportunity to make a bigger impact while achieving the sustainability targets.

What is the definition of additionality?

Additionality is a notion within renewable energy, which means that a company directly adds additional capacity to renewable energy to the grid of the nation. Organizations can increase their capacity by invest in renewable power generation in a manner which allows them to fund the development of energy generation from renewable sources. One method for businesses to invest in renewable power is through Corporate Power Purchase agreements.

As a company can choose to contribute genuine green power sources like solar or wind on the grid as opposed to buying renewable energy that is already in place. It’s as easy as signing up for an PPA which means that new renewable energy capacity can be integrated into the grid.

Additionality can be difficult to define and define beyond this because there is no universally accepted metrics are in place. Your investment could mean that the project is completed that it wouldn’t otherwise or is completed sooner, as a result of your investment.

Potentially, additionality could be made by generating energy on-site, however this is only a possibility for certain types of businesses.

Renewable energy and additional sources of energy

If you are looking to purchase the renewable power, there’s methods to make it happen that will help you to deliver additionality. Additionality is a way to upgrade to REGO-certified green energy since you’re buying the renewable power in a manner that puts green energy in the grid. Large corporations like Google as well as Apple are the primary ones accountable for the development of new renewable energy projects, however, PPAs allow additionality for smaller companies.

Many companies understand that acquiring quality renewable electricity is a crucial element for any successful net zero plan. But when it comes down to getting sustainable energy source, it is difficult to know which choice has the greatest real-world impact. There is confusion about the various methods, and worries are often raised about possible greenwashing. We have mentioned that one option to add further decarbonisation and additional electricity can be achieved through the power purchase agreement (PPAs).

These contracts are on the increase and certain businesses employing them as a way to reduce carbon emissions. However, more companies must participate, and correctly in order to benefit from the advantages that these contracts offer, particularly with regard to additionality and net zero targets.

To get back to basics A corporation Power Purchase Agreement (CPPA) is an energy contract that can be used by businesses that wish to purchase renewable electricity from a particular producer. They allow you to determine the price you will pay for the energy over an agreed upon, usually longer (normally between 5 to 25 years) duration.

If you purchase green energy directly with the source, both get advantages. The producer can invest in renewable energy generation, which reduces the risk involved in the development of new generation facilities. As a company you are guaranteed a price and protection from the increasingly volatile marketplace for wholesale electricity. This allows you to plan on other programs that concentrate on energy efficiency and get closer to achieving net zero.

There was a time that PPAs cost more and this meant it was a difficult choice to make to use PPAs. Today, PPAs are in line with the market, which makes them more appealing, with both added value and benefits. Through PPAs, you could be able to get private wire arrangements that permits you to move renewable power directly from your generator of the provider to your company. This can reduce the expense for having an in-between utility provider, which makes the PPA more of an expense.

Advantages of Additionality

Additionality has numerous benefits. It’s a true badge of honour that highlights the commitment of your company to creating a sustainable future. It’s an active move to demonstrate the way to net zero for your company.

Additionally, you can place additionality at the forefront and the center of your sustainability strategy. As a company you are able to celebrate your contribution to aiding renewable energy facilities to be constructed. It could be the case that without your contribution the plant would not be in existence. This is a compelling story and marketing asset and is a major advantage over your competition.

More Deep Green and additional

As we’ve discussed, current renewable energy capacity is in short supply and high demand. Businesses that purchase this green energy aren’t having the effect they would like to. There is a growing idea of deep green energy which can actually make an impact through the creation of your own energy, or by adding capacities to grid. This is a shift away from REGO-backed energy and towards onsite energy generation as well as the purchase of PPAs.