What is 24/7 carbon free energy?

A new way for corporations to procure and account for clean energy

24/7 carbon free energy (CFE) is an emerging strategy in corporate renewable energy procurement. 24/7 CFE means corporations purchase and account for clean energy based on how much they use on an hourly basis rather than an annual basis.

This approach to procuring electricity is a central focus of the Greenhouse Gas Protocol (GHGP), which governs how companies account for emissions from purchased electricity. The GHGP is the main global standard for corporate greenhouse gas (GHG) accounting. In 2023, it was used by 97% of S&P 500 companies that reported emissions, highlighting its central role in guiding corporate climate efforts.

The Scope 2 Guidance of the GHGP, which covers emissions from purchased electricity, is in the process of a multi-year revision. In a recent blog post, the GHGP outlined a draft proposal, which introduced hourly matching to account for when and where electricity is used, plus a separate metric for emissions impact accounting.

TransitionZero is a proud member of the Scope 2 Technical Working Group, a diverse team of experts that developed these recommendations to improve emissions accounting.

Our view on 24/7 CFE

As the GHGP notes in a recent blog post, the current Scope 2 “market-based” standard, which allocates emissions based on contracts with specific generators, has 1) helped scale clean energy procurement in early market stages, and 2) has also faced valid criticism for lacking accuracy and transparency, weakening the credibility of corporate clean energy and emissions claims. At TransitionZero we believe emission accounting standards should reflect the physical realities of the grid, and therefore we are supportive of the latest Scope 2 Technical Working Group outcomes. While hourly emissions accounting is emerging as the preferred accounting method, the GHGP does not set targets or grade performance.

However, our view extends beyond corporate procurement and accounting, and is shaped by who we are and what we believe in. TransitionZero’s mission is to help more teams working on energy transition planning use system models to make better decisions, faster. At our core, we are a software company with a non-profit mandate to build open, accessible, and free software for policymakers in low and middle income countries (LMICs), who often struggle with the cost and complexity of commercial grid modelling packages. What that means is we believe in locally led, least-cost grid planning, because in LMICs, affordable electricity is essential for economic development.

How system modelling can help understand and implement 24/7 CFE

With support from Google.org, over the coming months we will be releasing five reports modelling 24/7 CFE in India, Japan, Taiwan, Singapore and Malaysia. These reports will be based on detailed, open-source models which will explore the cost, investment and emissions implications of 24/7 CFE for corporate buyers and grid planners. Our working hypothesis is that because 24/CFE aligns with robust grid planning practices — i.e. ensuring electricity demand is balanced in real time while ensuring that grid expansion occurs at the lowest possible cost — it will result in grid operators saving money through least-cost grid planning.

With additional resourcing, we hope to bring these models on Scenario Builder, so more teams working on implementing CFE in India, Japan, Taiwan, Singapore and Malaysia can make better decisions, faster.