Energy Attribute Certificates (EACs) explained

What are Energy Attribute Certificates / Green certificates?

Energy Attribute Certificates (EACs), also known as electricity attribute certificates or green certificates, are certificates that track the attributes of renewable energy. EACs vary by region depending on geography and certifications schemes, but consistently track characteristics for every megawatt-hour (MWh) of renewable energy produced, including:

  • time and date of production
  • location of the power plant
  • type of technology (solar, wind, hydro, biomass, geothermal); and
  • age of the production device

EAC markets ensure that discrete units of renewable energy are generated, delivered, and consumed. On a shared energy grid, electricity from both renewable and non-renewable sources is combined, making it impossible to physically track renewable energy. EACs prevent double counting by ensuring that only one party can claim the attributes of each unit of electricity.

Renewable energy certificates (RECs) and other regional EAC Systems

EAC markets began in the late 1990s in Europe and the U.S. and developed internationally through different regulatory and procedural bodies. The four main systems are: Renewable Energy Certificates (RECs), Guarantees of Origin (GOs), International Renewable Energy Certificates (I-RECs), and Tradable Instruments for Global Renewables (TIGRs).

  • RECs: Used by the U.S. and Canada, RECs are a mix between compliance and voluntary markets governed at the state level. Electricity suppliers in most US states are required to comply with state regulations on renewable energy and RECs are the primary reporting tools. Separately, for voluntary purposes, companies use RECs to meet their voluntary standards as guided by the GHG Protocol, particularly for scope 2 emissions. There are ten tracking systems within the REC regions to issue and retire the certificates.
  • GOs: Predominantly used in Europe, GOs are standardised by the European Energy Certificate System (EECS) and national systems. GOs function similarly to RECs but cannot be transferred across different systems.
  • I-RECs and TIGRs: Developed after the European and North American systems, I-RECs and TIGRs incorporate best practices to include countries across Asia, Africa, and Latin America.

How EACs work

The process of producing renewable energy, verifying its production, tracking its movements within an EAC market, and then selling and retiring it involves several steps and market players:

  1. Producers of renewable energy generate one unit (MWh) of energy and request a certificate for each unit from an issuer.
  2. Issuers, usually independent organisations appointed by a national government, give one EAC for each unit of renewable electricity.
  3. Registries handle the transfer of EACs between participants. In the EU, the Association of Issuing Bodies (AIB) created the EECS rules to standardise the issuing, trading, and cancelling of GOs between national registries.
  4. End-users or their representatives cancel the EAC to remove it from the registry and prevent double counting.
  5. Consumers can then claim to have used power from a renewable source.

Renewable energy markets have become mature and diverse. While household consumers may be unaware of EACs, large corporations have detailed procurement agreements for their renewable energy portfolios.

Advantages of EACs

The biggest advantage of EACs is the ability to transparently and credibly track renewable energy production and consumption. They also provide a financial incentive towards innovation and growth, bringing us one step closer to a renewable energy transition as more climate-conscious consumers demand sustainable choices. In addition, EACs appeal to investors and contribute towards the UN’s Sustainable Development Goals (SDGs).

EACs offer flexibility and are available at all scales. They make renewable energy more accessible and promote widespread use in the green transition. Most importantly, they provide income to renewable energy producers by placing a premium on their electricity via consumer choice.

Through ClimatePartner’s Green Energy Services, companies can develop procurement strategies that include sourcing, purchasing, and cancelling EACs. Also, ClimatePartner supports companies in disclosing scope 1 and scope 2 emissions footprints in line with international standards (SBTi, CDP, RE100, etc.).

If you are interested in an introductory meeting about green energy products or need specific support, our Green Energy Services Team looks forward to hearing from you.

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