12 May 2023
Building bespoke datasets to rate renewable projects
Carbon Ratings Scientist
Jesper Juul Andersen
Chin Chern Low
BeZero Carbon have built bespoke databases and scenario analyses that effectively evaluate the role of carbon finance in renewable energy projects across the Voluntary Carbon Market.
Our analysis of these datasets indicates that, for most projects, the revenue generated from electricity sales significantly outweighs the revenue from carbon finance across three separate price scenarios.
The share of carbon finance relative to a project's overall revenue significantly impacts our additionality assessment.
What Do Renewable Energy Projects Do?
Renewable energy projects generate greenhouse gas avoidance credits because they support the deployment of renewable energy projects using technologies such as wind, solar, hydropower, biomass, and geothermal. By generating electricity from renewable sources, these projects displace the electricity that would have otherwise been generated by the operation of grid-connected fossil fuel power plants.
Building Bespoke Databases
BeZero Carbon has rated a total of 102 renewable energy projects across 18 countries (as of 11th May 2023). To effectively evaluate the role of carbon finance for these projects, BeZero has built several databases that improve our ability to assess the financial additionality of individual projects. For each project, our financial scenario analysis will interrogate and compare the two main project revenue streams:
The estimated revenue generated from the sale of electricity to the power grid
The estimated revenue generated from the sale of carbon credits