As hourly renewable matching moves into the mainstream, Global Firms are scaling up 24/7 Clean Power Adoption.Hourly renewable matching is picking up momentum and Global Firms are scaling up 24/7 Clean Power Adoption.

24/7 carbon-free electricity is becoming more commonplace in the global business world, with companies increasingly shifting away from annual renewable energy matching, and even hourly tracking of clean power usage. As clean energy procurement, renewable energy, corporate sustainability, decarbonisation and carbon-free electricity strategies continue to evolve in key markets, the transition is becoming a topic of interest.

According to new data, over 1,500 businesses world-wide now monitor electricity consumption using hourly matched systems, which is a threefold rise on last year. The 24/7 Carbon-Free Coalition is comprised of companies such as AirTrunk, AstraZeneca, Google, Shree Cement and Unilever, which will be evaluating and reporting hourly matched use of electricity.

Companies strive to hourly match clean energy.

Hourly matching is a new way of companies procuring renewable power. The traditional approach has been for businesses to use annual renewable electricity certificates or contracts for electricity, which match the amounts of electricity used with the energy produced from renewable sources within a 12-month period.

The 24/7 carbon-free electricity approach involves companies monitoring the time and location of electricity use, and matching that demand with the availability of carbon-free power sources. This allows a better insight into the electricity consumption and the availability of clean generation during the day.

During London Climate Action Week, the Climate Group has reached its 24/7 Carbon-Free Coalition with eight companies. The coalition is led by AirTrunk, AstraZeneca, Google, Shree Cement and Unilever in addition to Cathay Financial Holdings, Cathay Life and Princeton Digital Group.

These companies are pledging to report and measure matched electricity usage hourly in at least one market in the next 2 years.

Increased popularity of hourly energy data

During the London Climate Action Week, Granular Energy released research indicating quick progress on electricity matching by the hour. The use of electricity by businesses on hourly matched systems has risen markedly in the last year.

The market for energy suppliers has also grown – the volume of suppliers providing hourly matching tariffs has quadrupled over the same time. Currently, the United Kingdom has the most providers with such rates.

According to the development, the demand from companies to have more precise information about their energy use and carbon footprint is growing. Businesses can use hourly data to help them understand when electricity usage is not matching clean energy availability.

Economic and operational cost considerations for companies.

Matching by the hour is also related to energy management and business resilience. Companies can leverage electricity information to gain insight into electricity usage, control expenditure and mitigate risks from energy markets volatility driven by fossil fuels.

Detailed information about electricity systems could affect future electricity procurement as electricity systems are increasingly being faced with rising demand and dynamic energy prices. To ensure uninterrupted carbon-free power generation, businesses might increasingly turn to technologies like energy storage and flexible clean power generation.

The method also makes it easier for companies to have more information available when reporting on sustainability. There has been growing transparency of methods to measure renewable energy use, as investors, regulators and other stakeholders demand more transparent approaches to corporate climate claims.

Climate Group is committed to help establish international norms.

The 24/7 Carbon-Free Coalition will also offer companies technical guidance and opportunities for peer learning, as well as sharing knowledge. The program's goal is to assist businesses in measuring, reporting and improving hourly clean electricity matching (CEM) efforts.

The coalition follows the Climate Group's technical framework outlining guidance on how to procure carbon free electricity at the time and place released last year.

Those who favor hourly matching say that the annual renewable energy accounting method can fail to account for differences in electricity generation and demand during different hours of the day. Measuring electricity use by the hour provides a more precise picture of the carbon intensity of real electricity use.

Unilever shares its focus on procurement strategy shift

“Unilever’s engagement signalled the increased appetite of big businesses to gain visibility into electricity demand and availability of clean electricity in the markets they operate,” said the ESG team.

The coalition was intended to enable Unilever to learn more about the time and location of carbon-free electricity, and where it fits the company's needs, said Rianne Buter, Global Head of Sustainability at Unilever.

This information could be useful in devising electricity demand and procurement strategies and in sharing experience with other companies, she added.

Future of corporate clean power procurement

The proliferation of such 24/7 carbon-free electricity programs shows a greater transformation of corporate energy strategies. Companies are shifting their attention from purchasing renewable energy in volume to assessing renewable energy supply quality and reliability, including when.

Hourly matched electricity may be a more common way in which businesses achieve greater transparency and operation planning in their decarisation efforts, as energy markets are increasingly exposed to climate-related stresses and uncertainties, and everyday demand is becoming greater.