New report details opportunities for 24/7 Carbon-Free Energy procurement

A new report titled “24/7 TRUZERO Tracking Renewables Utilisation for Zero Emission Reporting and Operation” has provided valuable insights into time-matching, an approach to purchasing and certifying renewable energy that aligns generation with electricity demand on an hourly basis.

Facilitated by RACE for 2030 CRC in collaboration with UNSW, Enosi, and other partners, the report explores the challenges and opportunities available to Australian businesses as they work to meet ambitious carbon emission reduction goals through time-matched renewable energy procurement.

With increasing corporate commitments to renewable energy, heightened scrutiny for transparency, and emerging requirements for ‘green’ products, such as green hydrogen, to demonstrate time-matching in international markets, businesses are seeking innovative ways to reduce their carbon footprint. As the concept of 24/7 Carbon Free Energy (CFE) gains interest from companies looking to take a leadership role in climate action or access export markets for green products, the need to understand time-matching has grown.

24/7 TRUZERO investigates new types of Power Purchase Agreements (PPAs) that require time-matching of renewable energy purchases with electricity consumption, developing open-source tools that analyse the impact on costs, emissions, and the broader energy system. This study addresses the drivers for time-matching within corporate renewable energy Power Purchase Agreements (PPAs) and certification, highlighting its potential to drive emissions reductions for business and hedge against future electricity prices, while also exploring potential challenges associated with widespread adoption of this new approach.

Key findings from the report include:

• Project partner Enosi successfully demonstrated renewables matching and tracking in a PPA for several case studies
• 24/7 PPAs result in better matching and emissions outcomes compared to other PPA structures, but likely at additional costs compared to simple pay-as-produced contracts.
• Portfolio optimisation has a significant positive impact regardless of PPA type, and demand management further improves time-matching and emissions reductions.
• Achieving 90-95% 24/7 CFE in the Australian National Electricity Market (NEM) incurs a relatively modest cost premium. Higher CFE percentages are achievable, though come with increasing cost premiums as they approach 100%
• Time-matched renewable energy procurement has potential to drive investment in storage in the NEM.

“24/7 Clean Firm Energy contracting, and certification is at a nascent stage in Australia, but there are increasing calls for more transparency in carbon accounting and 24/7 CFE can provide clear provenance in renewable energy procurement. Time-matched renewable energy is becoming a requirement for green hydrogen certification and incentive payments in the EU and the US, which may drive this form of contracting. Our modelling has provided insights on the implications of 24/7 procurement for customers and for the National Electricity Market, but more importantly, the tools we have developed can now be used by stakeholders to explore their own scenarios”, said Anna Bruce, Associate Professor and Joint Director of the Collaboration on Energy and Environmental Markets at UNSW.

The report provides valuable insights for businesses, policymakers, and the renewable energy industry, offering a comprehensive understanding of the challenges and opportunities associated with 24/7 CFE procurement.

“This research shows that major buyers are leading and we are witnessing a shift from Net Zero to True Zero. 24/7 Carbon-Free energy will be both commercially viable and have a powerful impact on the next stage of decarbonising our power grids actually doing something about climate. We are already seeing the significant financial and carbon savings possible in time-matched renewable energy procurement and this report suggests that these benefits will only accelerate,” said Steve Hoy, CEO of Enosi.

The full report can be found here: https://racefor2030.com.au/research-reports/