Microsoft, Google, others partner with LevelTen Energy to create first market for 24/7 clean energy

Achieving Carbon-Free Power 24/7: The Granular Certificate Trading Alliance

Introduction

A growing number of organizations, including the U.S. government, are committed to achieving carbon-free power 24-hours-a-day, seven-days-a-week. To support this ambitious goal, Seattle startup LevelTen Energy, along with Microsoft, Google, and two clean energy companies, have announced a partnership to create a marketplace that will facilitate the procurement of alternative energy sources.

The Need for 24/7 Carbon-Free Power

While many corporate-backed clean energy efforts have focused on solar and wind power installations, these sources are not always available. Achieving carbon-free power around-the-clock requires the integration of additional energy sources such as nuclear, hydrogen fuel, batteries, and geothermal. The Granular Certificate Trading Alliance aims to address this challenge by providing a marketplace for energy buyers to purchase “granular certificates” that verify the generation of power from these alternative sources.

The Granular Certificate Trading Alliance

The Granular Certificate Trading Alliance, led by LevelTen Energy and its founding members Microsoft, Google, AES, and Constellation, is developing an ecosystem to connect energy buyers and sellers and facilitate the exchange of granular certificates. The project is being developed in partnership with the Intercontinental Exchange (ICE), a global financial exchange operator. The alliance plans to launch the trading platform next year.

Supporting Sustainable Development Goals

The Granular Certificate Trading Alliance aligns with several Sustainable Development Goals (SDGs), including Goal 7: Affordable and Clean Energy. By creating a marketplace for carbon-free energy sources, the alliance aims to drive investment in assets that deliver clean energy in the right place and at the right time, contributing to the transition to sustainable energy systems.

Benefits and Opportunities

The marketplace will enable buyers and sellers to access granular carbon-free energy and establish hourly price signals, which are crucial for driving investment in clean energy assets. Companies like Microsoft and Google, which have set goals for using clean power 24/7 by 2030, are among the first users of the marketplace. LevelTen Energy, known for operating the world’s largest marketplace for power purchase agreements, hopes to replicate its success with granular certificates.

How It Works

The platform allows companies to make power purchase agreements with energy producers and buy granular certificates from different sources. For example, a company building a new facility can make a power purchase agreement with a solar developer for a portion of its energy needs. To ensure uninterrupted power supply throughout the night, the company can then buy granular certificates from a battery startup. Any excess granular certificates can be traded on the platform.

Supporting Carbon-Free Energy in Polluting Areas

The trading platform also supports companies aiming to support carbon-free energy in areas that heavily rely on polluting power sources. By creating opportunities to retire and replace dirty power plants, the platform contributes to reducing carbon emissions and promoting sustainable development.

Driving Supply and Demand

The success of the marketplace relies on attracting companies and organizations eager to buy carbon-free power. Once the demand signals are aggregated on the trading platform, energy developers will be incentivized to provide the necessary supply. This approach ensures a market-driven transition to clean energy sources.

Conclusion

The Granular Certificate Trading Alliance represents a significant step towards achieving carbon-free power 24/7. By creating a marketplace for granular certificates, the alliance enables the procurement of alternative energy sources and drives investment in clean energy assets. This initiative aligns with the Sustainable Development Goals and contributes to the global transition to sustainable energy systems.

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.