First Portfolios Closed
Today marks the beginning of Q4 and the next phase in the deployment of WattCarbon’s energy decarbonization market. For the first set of portfolios, we sought out 1,000 MWh of solar from new rooftop projects in one of the dirtiest grids in the United States, 1,000 tons of CO2 emission reduction from electrifying buildings, and 1,000 MWh of energy reductions in California during the evening fossil fuel peak. As of today, we’re now closing these portfolios and moving into the delivery phase.
When we first contracted with our supply partners, we guaranteed to them that if they worked with us they would receive payment for carbon emission reductions. That promise (or advance market commitment) allowed them to go out and offer deals to their customers and recalibrate their business models to recognize the value of the environmental benefits of their projects. All of a sudden, projects that were hard to sell to customers (because it would be cheaper to keep using fossil fuels) became feasible and even desirable because the environmental benefits were being valued too.
As we have been selling out of the first batch of portfolios, our partners like Elephant Energy, BlocPower, Solar Holler, Atmos Financial, and Leap have been signing contracts with customers, connecting their data to our platform, and putting folks to work. The first projects are now being completed and it’s time to move into the next phase.
M&V and Credit Issuance
Our Measurement and Verification platform collects meter and/or device data from our partners as inputs into our carbon calculation engine. We’ve recently published our draft electrification and demand response methods and will be releasing our solar/battery methods soon. These methods are used to calculate carbon impacts for every hour of the day that result from the projects in our portfolios. Every watt-hour of electricity and gram of CO2 is assigned a serial number and saved into the account of the project developer in the form of an Energy Attribute Certificate (EAC). The EACs for each hour are then distributed proportionally to each buyer in the portfolio.
If you are a buyer in one of our first three portfolios, you will now start receiving EACs as they are issued. Demand response and solar portfolios will show up first, while EACs from electrification projects will require a full twelve months of project maturity before they can be issued.
We are thrilled to be embarking on this new phase of our journey and appreciate all of the support thus far from everyone who has participated on both sides of this nascent market. As we witness continued foot dragging from political leaders, it becomes all the more clear that we need better pathways to climate impact. Decarbonizing buildings and the energy that serves them might be our best chance.
Congratulations! It’s very exciting to see your vision unfolding in reality and to see so many people catching on to the most effective way to reduce carbon. Thank you for your hard work!