Senior Economist Goran Vojvodic and Managing Director Edo Macan’s Article Published on Utility Dive

In a recent article on Utility Dive, Senior Economist Goran Vojvodic and Managing Director Edo Macan discuss the evolving landscape of clean energy investments. Traditionally, clean energy buyers focused on annual emission offsets. However, there’s a shift towards hourly carbon neutrality, driven by large corporate buyers aiming for complete decarbonization.

This shift presents new opportunities and challenges for investors and power producers. Supplying carbon-free energy through long-term contracts could be profitable, but meeting hourly demands adds complexity. To succeed, portfolios must strategically mix resources and ensure operational efficiency.

The article highlights the limitations of annual matching and the growing demand for 24/7 carbon-free energy (CFE). This approach matches electricity needs with local carbon-free generation hourly, offering a more effective emissions offset. As the market moves towards granular emissions matching, suppliers must align strategic objectives with operational needs.

Vojvodic and Macan emphasize the importance of co-optimizing strategy and operations in decision-making. A dual-level approach is crucial for optimizing resource portfolios and ensuring high-quality decisions. This comprehensive modeling is essential for navigating the complexities of the energy transition and maximizing the impact of carbon-free initiatives.