While Aii is not currently providing support for renewable electricity (RE) procurement, we recognize this is a core part of the electrification journey. We have collaborated with brands to develop this guidance which provides a general overview and guidance for brands and suppliers of Energy Attribution Certificates (EACs) and Power Purchase Agreements (PPAs) - the two main routes to RE procurement in the supply chain.
By 2030, many brands will require a percentage of their supply chain electricity to be renewable, some mandating 100%. For suppliers, sourcing renewable electricity in partnership with brands will be a key milestone in their electrification journey.
Starting to source renewable electricity now will create better habits and a stronger understanding of how to source RE efficiently. As RE procurement is likely to become a sourcing hygiene factor, it will also be included in the cost of product—an important consideration in the long-term transition to electrification.
RE can be sourced and claimed in various forms, including unbundled EACs, PPAs, or onsite installations. This document aims to introduce EACs and PPAs, and provide a buyer’s perspective on procuring and managing them effectively.