Time-matching renewables gain interest among Australian firms

A recent report titled "24/7 TRUZERO Tracking Renewables Utilisation for Zero Emission Reporting and Operation" has highlighted the rising interest in time-matching technologies, which align renewable energy generation with electricity demand on an hourly basis. The study, initiated by RACE for 2030 CRC in partnership with the University of New South Wales (UNSW), Enosi, and several others, delves into the challenges and potential benefits for Australian businesses targeting significant carbon emission reductions through this innovative approach to renewable energy procurement.

As global corporations increasingly commit to renewable energy and face mounting demands for greater transparency and the adoption of green products, time-matching has become a focal point. The 24/7 Carbon-Free Energy (CFE) concept appeals to companies aiming to lead in climate action and strengthen their positions in export markets, particularly where green certification is becoming essential—an example being the burgeoning market for green hydrogen in Europe and the United States.

The "24/7 TRUZERO" report investigates new variants of Power Purchase Agreements (PPAs) necessitating the alignment of renewable energy procurement with consumption. Additionally, it develops open-source tools to assess the financial, environmental, and systemic impacts of these practices. According to Steve Hoy, CEO of Enosi, "This research shows that major buyers are leading and we are witnessing a shift from Net Zero to True Zero. 24/7 Carbon-Free energy will be both commercially viable and have a powerful impact on the next stage of decarbonising our power grids actually doing something about climate."

Key insights from the report include Enosi's successful demonstration of renewables matching and tracking within a PPA for various case studies. Moreover, it notes that 24/7 PPAs yield superior matching and emission results compared to other structures, albeit at a possible higher cost relative to simpler pay-as-produced contracts. Optimising portfolios consistently enhances outcomes irrespective of PPA type, with demand management further bolstering time-matching and emissions reductions. Professor Anna Bruce from UNSW stated, "Our modelling has provided insights on the implications of 24/7 procurement for customers and for the National Electricity Market, but more importantly, the tools we have developed can now be used by stakeholders to explore their own scenarios."

Additionally, the report finds that achieving a 90-95% 24/7 CFE in Australia's National Electricity Market (NEM) involves a mildly elevated cost premium. Higher percentages are achievable, though associated costs rise as they approach 100%. Time-matched renewable energy procurement is seen as a catalyst for storage investment within the NEM.

While still in its formative stages in Australia, 24/7 Clean Firm Energy contracting and certification are gaining momentum, driven by increasing calls for transparency in carbon accounting. The report also notes that adoption is encouraged by requirements in the EU and the US for green hydrogen certification and incentive payments tied to time-matching. Steve Hoy remarked on the financial and environmental advantages already observed: "We are already seeing the significant financial and carbon savings possible in time-matched renewable energy procurement and this report suggests that these benefits will only accelerate."

The findings presented offer significant implications for businesses, policymakers, and the renewable energy sector, providing a thorough understanding of the emerging challenges and opportunities tied to 24/7 CFE procurement.