Developers, corporations, and utilities face increasingly complicated decisions when considering how, where, and when to invest in renewable projects while trying to meet evolving carbon reduction goals. Is it safe to assume that today's carbon emissions standards will hold true throughout the multi-decade lifecycle of a project, or should stakeholders look for – and find ways to account for – more efficient decarbonization strategies?

In a  recent webinar, Dr. Gary Dorris, CEO at Ascend Analytics, joined Anthony Boukarim, Director of Resource Planning and Power Procurement, and Carley Dolch, Director of Business Development, to discuss the potential impact of using locational marginal emissions (LMEs) to optimize decarbonization strategies, reduce carbon abatement costs, and increase the value of renewable energy credits (RECs).

Key Takeaways 

• Emission accounting systems continue to evolve, while decisions today affect company financials for the next 15-20 years. Taking a high-resolution approach to considering future changes helps avoid irreversible investments in annual RECs when the market is heading towards an hourly accounting framework.  

• Annual emissions accounting results in economically inefficient outcomes that provide a poor assessment of emissions impact. Annual emissions accounting also fails to value storage, which charges during low-emission hours and discharges into high-emission hours, as a resource that offsets emissions.

• While hourly matching on RECs or emissions is much more effective in abating carbon than traditional annual REC matching, hourly LME matching provides the optimal solution for cost-effective decarbonization. Instead of matching electricity consumption to clean generation, this method focuses on matching emissions from electricity consumption to emissions abated by renewable generation.

• Correctly accounting for LMEs requires advanced modeling and forecasting capabilities, such as those offered by Ascend's PowerSIMM™ energy analytics platform, that deliver a high-resolution, nodal-specific view of locational marginal emissions.

Access the full webinar now. 

Interested in Learning More?  

The PowerSIMM™ energy analytics platform incorporates the physical dimensions of weather and asset operations concurrently with market price dynamics, to support portfolio management, valuation, and resource reliability and planning capabilities. Contact us to learn more.    

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Ascend Analytics is the leading provider of market intelligence and analytics solutions for the energy transition. The company’s offerings enable decision makers in power development and supply procurement to maximize the value of planning, operating, and managing risk for renewable, storage, and other assets. From real-time to 30-year horizons, their forecasts and insights are at the foundation of over $50 billion in project financing assessments. Ascend provides energy market stakeholders with the clarity and confidence to successfully navigate the rapidly shifting energy landscape.