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RE100, the leading global initiative to encourage companies to source 100% renewable electricity, is changing its technical criteria. The updated regulations will address the sustainability of renewable electricity sources, the age limit of the power plants, and the market boundaries in Europe.
Below we outline the updates, in particular, the requirements around Energy Attribute Certificates (EACs). But what does this mean for your business?
What is RE100?
Led by Climate Group, RE100 aims to accelerate the transition towards zero carbon grids at scale by clarifying how companies reach 100% renewable electricity and celebrating progress.
How does RE100 drive change?
The increased purchase of global renewable energy solutions drives further market development of renewables. In 2021, renewables accounted for 30% of global electricity production, ranking second after coal and ahead of gas, nuclear, and oil.
The International Energy Agency, the intergovernmental organization analyzing global energy trends, promoting energy efficiency, and advising on energy policy, forecasts that renewables will become the largest source of global electricity production by early 2025, surpassing coal.
More than 400 ambitious companies have already committed to RE100 to achieve 100% renewable electricity, including 15% of Fortune Global 500 companies (according to our annual research into the climate commitments).
RE100 members account for about 1.5% of electricity consumption in the world, more than the electricity consumed by the United Kingdom (RE100, 2023).
How will RE100 technical criteria change in 2024?
RE100 technical criteria have been established to guide member companies in purchasing renewable electricity and defining progress towards their target of securing 100% of their electricity from renewable sources. Starting on the 1st of January 2024, new criteria will come into effect, requiring companies to meet stricter requirements in order to make credible claims.
What will change from the 1st of January 2024?
- Compliant technologies, such as sustainably sourced biomass and sustainable hydropower, will require third-party certification.
- Electricity must be sourced from power plants, either renewable generators commissioned or re-powered, under 15 years old. However, up to 15% of corporates' electricity consumption may be exempt from this requirement. For example, if a company procures 50% of its electricity from renewable sources, 15% of that amount is not subject to the requirement of being sourced from a power plant under 15 years old.
- The market boundaries in Europe will change. Bulgaria, Cyprus, Ireland, Malta, Poland, Romania, UK and Serbia will be excluded from the RE100 defined market boundary. This means that if companies have consumption in any of these countries, it must be sourced from within that specific nation.
RE100 is allowing forward contracts signed this year to be exempt from these new requirements, until those contracts expire. RE100 technical criteria states that companies can source renewable electricity in compliance with the current 2023 technical criteria for this year and future demand by contracting long-term forward contracts.
How to source Energy Attribute Certificates to meet RE100 commitments
Energy Attribute Certificates (EACs) enable companies to immediately and cost-effectively meet their global renewable energy targets, address their Scope 2 impacts, and meet RE100 commitments. EACs continue to be the largest source of renewable electricity procurement across all RE100 member companies: 39% of renewable electricity is procured from EACs (RE100 Annual Report, 2022).
What are the key RE100 technical criteria to source EACs?
- Purchasing the exact amount of EACs to match your electricity consumption for a given time period.
- Sourcing EACs from production facilities linked to your company's market of consumption. The US and EU are both counted as single market boundary for the purpose of Scope 2 accounting.
- Ensuring the electricity produced by renewable sources is only counted and claimed once.
- Demonstrating that EACs are tracked and retired on national and international registries to support your renewable energy claims.
Every two years, the technical criteria are revised to provide companies with clarity on how they can procure renewable electricity from EACs to meet their RE100 targets going forward. Next update is planned for March 2024.
Want to learn more about the changes and how it will impact your renewable energy strategy?
How can Climate Impact Partners Help?
Climate Impact Partners procures Renewable Energy Certificates (RECs) in North America, Guarantees of Origin (GOs) in Europe, Renewable Energy Guarantees of Origin (REGOs) in the UK, and International Renewable Energy Certificates (I-RECs) and Tradable Instruments for Global Renewables (TIGRs) across the rest of the world. There are also a variety of national EACs available in countries such as Australia, New Zealand and Japan.
Our sourcing expertise and network of partners allow us to create a renewable energy solution that delivers the best value for companies in terms of technology, location, and the size and age of the power plant. All our renewable energy solutions guarantee that EACs have not been double-counted, double-issued or double-claimed, and that they are tracked and retired on third-party registries. We advise clients and help them procure solutions that are underpinned by leading standards.
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