The way we measure electricity is crucial in showing - or not showing - shortcomings in carbon-free energy production and consumption. Companies like Electricity Maps and Reel believe that measuring electricity on an hourly (or sub-hourly) level (instead of an annual level) to better reflect the reality of electricity will accelerate the energy transition. *This blog post was written in collaboration with Lea Hoberg from Electricity Maps.
Introduction
Key takeaway 1: Analysing electricity at an annual level hides important details.
Every second of every day, electricity is created by various energy sources and delivered to our electricity grids. However, electricity as a product is rarely treated with this level of detail, and instead tends to be analysed at an annual level.
For example, most companies wanting to be sustainable will purchase enough renewable electricity to match their annual electricity consumption. This means that if they consumed 100 MWh of electricity in a year, they would purchase 100 MWh of renewable electricity (or most commonly, certificates representing renewable electricity) produced within the same year.
This ‘annual matching’ approach is useful in revealing large-scale patterns in the seasonality of electricity consumption (e.g., office buildings consume less during holidays), and the natural variability of electricity generation (e.g., there is less sun, and therefore less solar energy production in winter months).
However, because energy is generated from different sources with different carbon-intensities every second of every day, analysing electricity at an annual level obscures important details. Most importantly, the hourly variability in electricity consumption and production is smoothed over, hiding hours of the day where renewable energy supply is low and fossil fuel energy supply is high.
Key takeaway 2: Measuring electricity in greater detail reveals a need for more zero-carbon technologies.
Measuring electricity in greater detail (i.e., with more granularity) allows us to pinpoint the times of day when electricity production results in the highest carbon emissions, and when electricity consumption is associated with the most carbon emissions. By extension, it shows us what times of day we need more renewable energy and zero-carbon technologies.
Granular data is crucial for creating carbon-free electricity grids. A carbon-free grid is one where electricity production and consumption are 100% carbon-free every hour of every day, also known as being 24/7 Carbon Free Energy (CFE).
With granular data from companies like Electricity Maps, we can:
- See which hours need more renewable energy and zero-carbon technologies, and in turn drive demand for these technologies.
- Adjust electricity consumption to avoid hours where fossil fuel energy supply is high and consume more during carbon-free hours.
- Create electricity contracts that match consumers with renewable energy production on an hourly level.
Together, these three changes can help decarbonize electricity grids faster.
Granular data in action
Key takeaway 3: Granular data can improve the financial benefits for companies entering Power Purchase Agreements with Reel.
Power Purchase Agreements (PPAs) are unique electricity contracts that enable companies to buy electricity directly from a new solar or wind park built as a direct result of their PPA. Electricity retailers like Reel offer PPAs, which come with fixed electricity prices for 5 to 10 years, to help companies hedge against volatile electricity prices.
PPAs work by matching a company’s pattern of electricity consumption with the new solar or wind park’s pattern of electricity production. The extent to which a PPA is an effective hedge depends on how closely aligned the PPA’s production profile is to the buyer’s energy consumption - any deviation leads to market exposure. Matching customers on an hourly level with the energy production from the PPA can help ensure a closer match, increasing the PPA’s effectiveness as a hedge.
Key takeaway 4: Granular data enables more granular reporting which improves corporate disclosure
Granular electricity data provides consumers with more accurate insights into the carbon intensity of their electricity consumption. As noted earlier, annual data can hide hours of the day where renewable energy supply is low and a company’s electricity consumption is thus more carbon intense.
With the insights provided by granular electricity data, companies can produce more accurate and comprehensive sustainability reports. Companies can also craft electricity strategies that prioritise hourly matching with renewable energy production, known as a 24/7 carbon-free energy (CFE) approach.
Regulation on electricity is increasingly moving towards a granular measurement of electricity. By selecting electricity retailers that support granular data, companies can future-proof their reporting and electricity strategy.
Key takeaway 5: Granular data enables consumers to adjust their consumption depending on the carbon intensity of electricity production
Granular real-time and forecasted data on the carbon intensity of electricity opens the door for optimization. This data can allow businesses and their users to intelligently shift their electricity consumption to times when there is less carbon-intensive energy on the grid.
Companies with especially energy-intensive operations can benefit from optimizing their electricity use to align with cleaner energy production. For example, carbon-intensity forecasts can be used to run power-heavy computations in data centers during times when the sun shines or the wind blows and thus reduce their carbon impact.
Businesses can also build this granular data into their consumer products to allow customers to optimise their energy consumption and lower their emissions.
For example, in smart electronic devices (e.g. Smart Home devices or smartphones), users can gain access to real-time information on the electricity they are consuming. Applications can empower them to optimize their devices to shift electricity use (e.g. a washing machine running or a laptop charging) to times when renewable energy is abundant. In the same way, optimizing electronic vehicle charges can significantly reduce the carbon footprint of electric driving. Hourly granularity across locations is crucial to unlocking this optimization potential - charging based on hourly data vs. yearly average data can lead to an additional +11% in emission reduction (FUSE study).
Where to access granular data
Key takeaway 6: ElectricityMaps enables you to integrate granular data into your products
Granular data is often incredibly difficult and costly for companies to access. Different data formats and quality standards, market boundary limitations as well as different time frequencies and data delays contribute to the difficulty. Electricity Maps’ API reduces this complexity, offering a single API that gives access to standardised global data on a granular level. The quality and accuracy of the data is guaranteed through a scientific methodology and processes such as flow-tracing, that ensure that imports and exports of electricity are accounted for.
For example, using ElectricityMaps’ simple API, Reel provides detailed insights into a company’s emissions from electricity by combining their hourly electricity consumption with the real time carbon intensity of the electricity grid. Electricity Maps’ API makes the integration of granular data and the development of new applications or geographical expansion as easy as possible.
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In conclusion, shifting from an annual to a granular, hourly approach in measuring electricity consumption and production is pivotal to a carbon-free energy future. By embracing this more detailed level of analysis, we can reveal the true carbon intensity of electricity usage, optimize energy consumption to reduce emissions, and better align renewable energy production with demand. This granularity not only enhances the effectiveness of Power Purchase Agreements (PPAs) but also empowers companies and consumers to make informed decisions that support sustainability goals. As the energy landscape evolves, integrating granular data into corporate strategies and consumer products will be essential for accelerating the transition to a 24/7 carbon-free energy system.
