Pursuing 24/7 carbon-free energy is complex. Here’s what really matters.

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Goran Vojvodic and Edo Macan from EconONE Research discuss a shift in clean energy investments towards 24/7 carbon-free energy goals, driven by large corporate buyers. Previously, clean energy investments were evaluated on an annual basis, but market leaders are now demanding hourly displacing of emissions, leading to stricter standards in measuring decarbonization progress. The move towards hourly demand creates opportunities for investors and power producers, but also introduces risks, necessitating a strategic mix of resources for reliable green power supply.

As companies aim for complete decarbonization with 24/7 carbon-free energy, aligning operations and investment decisions becomes critical. The traditional annual matching approach is being replaced by granular hourly matching strategies. Prospective suppliers of 24/7 carbon-free energy need to balance long-term strategic objectives with immediate operational needs, evaluating a mix of renewable sources and storage technologies to ensure the consistent supply of clean energy. This shift towards more comprehensive modeling aligns with the evolving demands of decarbonized electricity markets, optimizing financial decisions and enhancing the efficiency of power markets.