In a groundbreaking collaboration reported by GeekWire, Seattle-based startup LevelTen Energy has joined forces with industry giants Microsoft, Google, and two clean energy firms to establish the Granular Certificate Trading Alliance. Announced on December 14, 2023, this innovative partnership aims to facilitate the transition towards 24/7 carbon-free power, moving beyond the conventional focus on solar and wind energy.
Traditionally, corporate commitments to clean energy involved increasing installations of solar and wind facilities. However, the intermittent nature of these sources necessitates a more diversified approach, including nuclear, hydrogen fuel, batteries, and geothermal. The newly introduced marketplace will enable energy buyers to acquire “granular certificates,” verifying the time and location of power generation. This will empower providers of alternative energy solutions to market their contributions to continuous carbon-free power.
The Granular Certificate Trading Alliance by LevelTen Energy
Named the Granular Certificate Trading Alliance, this collaborative effort, led by LevelTen Energy, aims to establish an ecosystem connecting energy buyers and sellers while managing the exchange of granular certificates. Developed in partnership with the Intercontinental Exchange (ICE), a global financial exchange operator, the alliance’s founding members include Microsoft, Google, AES, and Constellation.
Microsoft and Google, both committed to achieving 24/7 clean power by 2030, are not only actively participating in building the project but also plan to be among its first users. The marketplace is scheduled to launch next year, offering a platform for hourly price signals to drive investments in assets delivering carbon-free energy at the right time and place.
LevelTen Energy, which operates the world’s largest marketplace for power purchase agreements, anticipates a similar explosion of interest with granular certificates. The platform is designed to support businesses, large and small, in reaching their climate targets by facilitating the trading of granular certificates.
The trading platform’s functionality is illustrated through an example: a company requiring 100 megawatt hours of electricity annually signs a power purchase agreement with a solar developer. However, recognizing the need for power during nighttime operations, the company uses the platform to bid on granular certificates from a battery startup connected to the grid. Surplus certificates can be traded, offering flexibility to adapt to changing energy needs.
The Granular Certificate Trading Alliance represents a significant leap forward in the pursuit of continuous carbon-free power, leveraging a marketplace to drive demand, attract investment, and foster innovation in diverse clean energy sources. The collaboration between tech giants, a startup, and clean energy firms underscores the collective commitment to combating climate change and transitioning towards a sustainable energy future.
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