Gerrn Energy by the Hour: Google, Better Energy and Energinet in first real-world test of new energy certificates
Published on December 6, 2024
Granular certificates that match production and consumption of green energy every hour takes a major step from development to reality with test partnership between Google, Better Energy, Flexidao and Energinet. The test takes advantage of Denmark’s large share of renewables in the energy system and centralized production and consumption data from smart meters.
Granular certificates, that enable the matching of green power production with hourly consumption, has been under development on an international level for some time, with large consumers, legislators, transmission system operators and NGOs working towards a way to track and verify green energy production and consumption in the same interval as it is traded in the market.
Green energy production varies a lot over the course of the day – and the year – depending on the weather. So does consumption, when consumers act flexibly. By matching renewable energy production with consumption by the hour, the market can track its carbon footprint and sustainability efforts closer to the fluctuating reality of the energy system.
This ambition takes a big step towards reality with the first transactions of granular certificates in a real-world scenario within the EU taking place in a large scale test in December 2024 on Energinet’s platform Energy Track & Trace, which handles this new type of certificates for both consumption and production in Denmark.
Proving green market choices
The test will be carried out in a partnership representing the whole power supply chain; Google as energy consumer with its energy intelligence partner Flexidao, Better Energy as renewable energy supplier, and transmission system operator Energinet issuing granular certificates via the Energy Track & Trace platform.
The aim for the test is to show real world feasibility of this new method for tracking green choices in the electricity market. This is already possible with the use of Guarantees of Origin, the well-established and regulated – and increasingly popular – certification system, that documents energy production and consumption per megawatthour.
The European Union’s directive on renewable energy from 2023 – REDIII – legally established granular certificates. The directive will be transposed into Danish law May 2025, paving the way for granular certificates to work as granular guarantees of origin.
The whole power supply chain – and lots of data
For the test, consumption data from meters at Google’s Danish datacenters is utilized. Denmark is particularly relevant for testing of granular certificates due to its large share of renewables, with production and consumption data centralized through Energinet’s DataHub, easing the access to data and software systems built on it.
Energy Track & Trace is such a system that provides market participants access to granular certificates based on their metering data.
Director of Energinet DataHub, Martin Lervad Lundø, states:
“Energy Track & Trace can provide reliable proof of where and when electricity is generated with the potential to change how electricity generation and consumption are measured, tracked and documented. This is something we worked on throughout the development of the solution, and now we are at the point where users will be added to the system, not just in a test environment, but with real data from real production and consumption. We hope it can inspire other actors to take an interest in the opportunities that lie in the movement.”
Google participates in the Energy Track & Trace pilot test as consumer at the company’s Danish sites with a strategic goal of 24/7 Carbon-free energy by 2030.
Niels Andersen, Google Public Affairs Lead, Google Data Centers, Nordic Region, says:
“We are excited to see developments from issuing bodies like Energinet to enable more granular tracking of clean energy, which will help accelerate the transition to 24/7 carbon-free energy. We hope to see many more issuing bodies move towards issuance of granular certificates in the years to come.”
Danish renewable energy company Better Energy supplies Google with energy and the pilot test with production data to match with the consumption by the hour.
Peter Bjerregaard, Better Energy vice president of regulatory affairs, states:
“This program marks a significant step toward a more sustainable energy future. As we transition into a phase where the timing of production and consumption is ever more important, empowering consumers with the necessary information on energy usage to make informed decisions becomes essential. This transparency fosters a culture of sustainability and accountability within our energy landscape while maintaining our focus on additionality and flexible consumption to achieve our climate target.”
Flexidao is a software company that manages Google’s global energy portfolio in their clean energy intelligence platform, which is connected to the Energy Track & Trace software for the test, monitoring and matching granular certificates on Google’s behalf.
Facts on granular certificates and the Energy Track & Trace test
The test of Energy Track & Trace based on hourly consumption and production data from Google and Better Energy smart meters in Denmark runs through December 2024.
Every hour of green power produced is matched with specific consumption data for the same hour in an efficient and secure way, providing reliable documentation of the origin of the energy consumed and its emission. Granular certificates follow the market interval which for the most part is currently hour-based, but moving towards fifteen minutes in the future.
Energy Track & Trace takes its name from a partnership between transmission system operators at European level, in which Energinet is an active participant along with similar transmission system operators such as Elering in Estonia, 50Hertz in Germany and Elia Group in Belgium.
Energy Track & Trace follows the international standards for granular certificates developed by the NGO EnergyTag.
The Energy Track & Trace platform is designed for the development of individual solutions and reporting tools based on the platform, for example monitoring and documentation of energy consumption and ESG reporting.