WEBVTT

1
00:00:04.639 --> 00:00:08.199
<v Speaker 1>With laurn Sagoland from London and Gerard Reed from Berlin.

2
00:00:08.720 --> 00:00:11.400
<v Speaker 1>This is redefining energy today.

3
00:00:11.480 --> 00:00:14.359
<v Speaker 2>On referring energy, this is a subject very close to

4
00:00:14.400 --> 00:00:18.000
<v Speaker 2>my heart, is the fight for proper carbon accounting and

5
00:00:18.280 --> 00:00:22.399
<v Speaker 2>twenty four seven green power. Now j'are my usual co

6
00:00:22.559 --> 00:00:25.519
<v Speaker 2>host is not there, but thanks God I found a

7
00:00:25.800 --> 00:00:29.839
<v Speaker 2>replacement another Irish guy. Welcome Killian Daily.

8
00:00:30.280 --> 00:00:32.439
<v Speaker 1>Thanks very much for having me along. I'm happy to

9
00:00:32.479 --> 00:00:34.679
<v Speaker 1>fly the flag of Ireland. Enjoyed as absent.

10
00:00:35.000 --> 00:00:39.799
<v Speaker 2>This episode is in partnership with a company I've invested

11
00:00:39.840 --> 00:00:44.600
<v Speaker 2>into called Renewable, and Renewable is a procurement and sustain

12
00:00:44.640 --> 00:00:49.520
<v Speaker 2>meety platform for temporal match renewable energy. Now we'll discuss

13
00:00:49.560 --> 00:00:53.439
<v Speaker 2>a bit later, but first I want to look back.

14
00:00:53.600 --> 00:00:57.799
<v Speaker 2>What's the Greenhouse Guest protocol, how important it is and

15
00:00:58.000 --> 00:01:00.840
<v Speaker 2>how we are really Killian at a cross road right

16
00:01:00.880 --> 00:01:05.040
<v Speaker 2>now because the version three is in debate. Now you

17
00:01:05.120 --> 00:01:08.319
<v Speaker 2>are executive director of Energy Tech. Can you explain a

18
00:01:08.319 --> 00:01:09.599
<v Speaker 2>bit what Energy Tag is.

19
00:01:10.120 --> 00:01:13.879
<v Speaker 1>Yeah, So, Energy Tag is a nonprofit. Basically, we advocate

20
00:01:13.920 --> 00:01:18.079
<v Speaker 1>for reforms in clean electricity markets and carbon accounting, ultimately

21
00:01:18.120 --> 00:01:20.519
<v Speaker 1>with the end goal of delivering clean power around the clock.

22
00:01:20.799 --> 00:01:24.159
<v Speaker 1>Today's markets and accounting structures just basically don't do that.

23
00:01:24.680 --> 00:01:30.159
<v Speaker 2>Now Companies cooking their books and trying to transform reporting

24
00:01:30.200 --> 00:01:34.239
<v Speaker 2>into a pr exercise. That's not new. For instance, if

25
00:01:34.280 --> 00:01:39.200
<v Speaker 2>we look back before the nineteen twenty nine crash, companies

26
00:01:39.239 --> 00:01:43.000
<v Speaker 2>were reporting their financials the way they wanted. So every

27
00:01:43.000 --> 00:01:46.079
<v Speaker 2>time there's a crisis, there are standards that come in.

28
00:01:46.640 --> 00:01:51.040
<v Speaker 2>So now, of course the financial standouts are pretty established

29
00:01:51.040 --> 00:01:54.840
<v Speaker 2>and accepted by everybody. Now, what happened is that in

30
00:01:54.879 --> 00:01:58.359
<v Speaker 2>the nineties, as the whole conversation around climate change and

31
00:01:58.840 --> 00:02:03.159
<v Speaker 2>emission tradings out to appear, what we realized and what

32
00:02:03.239 --> 00:02:07.120
<v Speaker 2>government realized is that company were reporting their C two

33
00:02:07.159 --> 00:02:12.919
<v Speaker 2>emission in a very disorganized, self serving way. And I

34
00:02:12.960 --> 00:02:16.360
<v Speaker 2>think the government toold the industry. Look, guys, whether you

35
00:02:16.439 --> 00:02:18.719
<v Speaker 2>come with a common standout to report your CEO two

36
00:02:18.800 --> 00:02:22.400
<v Speaker 2>or we'll do it ourselves. So in nineteen ninety eight,

37
00:02:22.560 --> 00:02:26.080
<v Speaker 2>two NGO one in the US called the World Resource Institute,

38
00:02:26.159 --> 00:02:28.360
<v Speaker 2>and you know one in Switzerland called the World Business

39
00:02:28.400 --> 00:02:33.319
<v Speaker 2>Council for Development put together a task force to write

40
00:02:33.360 --> 00:02:35.199
<v Speaker 2>that first Greener's Gas Protocol.

41
00:02:35.599 --> 00:02:37.479
<v Speaker 1>I fully agree, In fact, I have sort of personal

42
00:02:37.719 --> 00:02:40.080
<v Speaker 1>experience of this. So before energy tag, what I used

43
00:02:40.080 --> 00:02:44.520
<v Speaker 1>to do was buy electricity, wholesale electricity for a French

44
00:02:44.560 --> 00:02:48.400
<v Speaker 1>company called aeri Quid, which consumes more electricity than my

45
00:02:48.439 --> 00:02:51.080
<v Speaker 1>home country of Ireland forty two an hours a year.

46
00:02:51.120 --> 00:02:53.719
<v Speaker 1>So this is big stuff, right, And one day I'll

47
00:02:53.719 --> 00:02:56.560
<v Speaker 1>be buying electricity where obviously you have to match your

48
00:02:56.560 --> 00:03:00.199
<v Speaker 1>demand on an hourly basis and electricity markets with real power,

49
00:03:00.680 --> 00:03:02.919
<v Speaker 1>and then the next day I would go and do

50
00:03:03.000 --> 00:03:06.120
<v Speaker 1>the carbon accounting. And this world is it is a

51
00:03:06.120 --> 00:03:09.159
<v Speaker 1>bit of a parallel universe. You can claim to be

52
00:03:09.240 --> 00:03:12.719
<v Speaker 1>solar powered at night, you can claim that you're consuming

53
00:03:12.800 --> 00:03:17.680
<v Speaker 1>icelandic hydro for your operations in Italy. It's really something

54
00:03:17.719 --> 00:03:21.639
<v Speaker 1>that is detached from reality and unfortunately that's where we're

55
00:03:21.680 --> 00:03:24.319
<v Speaker 1>at today with carbon accounting. It's rules that were set

56
00:03:24.400 --> 00:03:26.960
<v Speaker 1>up maybe twenty years ago when we were kicking off

57
00:03:27.000 --> 00:03:30.280
<v Speaker 1>the renewable energy revolution, but now it's just simply not

58
00:03:30.479 --> 00:03:32.719
<v Speaker 1>really fit for purpose anymore when we need to think

59
00:03:32.719 --> 00:03:36.000
<v Speaker 1>about storage, flexibility and ultimately all the solutions we need

60
00:03:36.000 --> 00:03:37.599
<v Speaker 1>to integrate renewables around the clock.

61
00:03:38.039 --> 00:03:41.360
<v Speaker 2>The task force was composed of about thirty forty people,

62
00:03:41.560 --> 00:03:44.560
<v Speaker 2>and I wasn't one of them at the time I

63
00:03:44.599 --> 00:03:49.719
<v Speaker 2>was working at PwC. We brought the accounting expertise into

64
00:03:49.759 --> 00:03:53.759
<v Speaker 2>the building of the gunas GAES Portocol, which took probably

65
00:03:54.159 --> 00:03:57.719
<v Speaker 2>three years to put together. That the interesting thing is

66
00:03:57.759 --> 00:04:01.240
<v Speaker 2>it started by the shell of reporting SHELL as an

67
00:04:01.240 --> 00:04:06.039
<v Speaker 2>extraordinary technical seal two reporting standards. And they arrived and

68
00:04:06.120 --> 00:04:08.080
<v Speaker 2>they just say, oh, you know, we're Shell, We're so good.

69
00:04:08.400 --> 00:04:10.560
<v Speaker 2>We're just going to remove SHELL reporting and we're gonna

70
00:04:10.560 --> 00:04:14.159
<v Speaker 2>put global reporting. He said the guy, wait, you know,

71
00:04:14.240 --> 00:04:17.079
<v Speaker 2>we need to figure out and look, on one hand,

72
00:04:17.199 --> 00:04:22.120
<v Speaker 2>it was technically extraordinary, and on the other was extremely

73
00:04:22.279 --> 00:04:25.879
<v Speaker 2>self serving because at the time, and of course now

74
00:04:25.920 --> 00:04:28.800
<v Speaker 2>everybody knows scope one scope too scop through. But at

75
00:04:28.800 --> 00:04:32.040
<v Speaker 2>the time it was direct and indirect, So you had

76
00:04:32.240 --> 00:04:36.360
<v Speaker 2>direct emissions which were like your responsibility, and indirect were

77
00:04:36.360 --> 00:04:39.399
<v Speaker 2>like other people's problem. And the whole game of Shell

78
00:04:39.600 --> 00:04:42.800
<v Speaker 2>was just to spend his time taking some of their

79
00:04:42.839 --> 00:04:45.519
<v Speaker 2>direct emission and doing a lot of explanation where in

80
00:04:45.560 --> 00:04:49.399
<v Speaker 2>fact they should be indirect. We start publishing a first

81
00:04:49.480 --> 00:04:54.240
<v Speaker 2>draft and a certain number of companies were volunteer to

82
00:04:54.279 --> 00:04:57.079
<v Speaker 2>execute the first draft, and everybody would report the same way,

83
00:04:57.079 --> 00:05:00.399
<v Speaker 2>which was already a big progress. And I was in

84
00:05:00.480 --> 00:05:04.800
<v Speaker 2>charge of the aluminium sector, so all the aluminium sector

85
00:05:04.920 --> 00:05:08.040
<v Speaker 2>companies were supposed to use the protocol. And I end

86
00:05:08.160 --> 00:05:11.199
<v Speaker 2>up twenty five years ago a Tomago, which is the

87
00:05:11.199 --> 00:05:14.120
<v Speaker 2>biggest aluminium smelter in Australia. It's a great you know,

88
00:05:14.360 --> 00:05:17.120
<v Speaker 2>the tour and you know, they welcome me and it's

89
00:05:17.160 --> 00:05:21.199
<v Speaker 2>a beautiful plant. It's newcastles with between Sydney and Brisbane,

90
00:05:21.639 --> 00:05:25.560
<v Speaker 2>and the tour around, mister Segalen and now we're so clean,

91
00:05:25.639 --> 00:05:28.360
<v Speaker 2>We're so clean. We saw like, oh, your protocol is

92
00:05:28.399 --> 00:05:30.240
<v Speaker 2>going to show that we are so clean. So I

93
00:05:30.240 --> 00:05:31.839
<v Speaker 2>said great. You know, after like an hour and a

94
00:05:31.879 --> 00:05:35.199
<v Speaker 2>half of propaganda, I go back on the parking lot

95
00:05:35.800 --> 00:05:39.319
<v Speaker 2>and then above my head I'll see all those wires

96
00:05:39.439 --> 00:05:43.000
<v Speaker 2>and literally across the fence. So it was not an expression,

97
00:05:43.079 --> 00:05:46.000
<v Speaker 2>it was for real. There was eight hundred megawat coal

98
00:05:46.040 --> 00:05:50.000
<v Speaker 2>plants running twenty four seven for a Tomago smelter. And

99
00:05:50.040 --> 00:05:52.560
<v Speaker 2>I said, what about those emissions? And I said, yeah,

100
00:05:52.600 --> 00:05:56.560
<v Speaker 2>they're not mine, yeah, but indirectly they're yours. And the

101
00:05:56.680 --> 00:06:00.399
<v Speaker 2>guy at this wonderful sentence, he say, of course I know.

102
00:06:01.040 --> 00:06:04.519
<v Speaker 2>If I report my direct emission, that's two ton of

103
00:06:04.560 --> 00:06:08.399
<v Speaker 2>sew two aluminium. But if I include the cold plant,

104
00:06:08.879 --> 00:06:12.399
<v Speaker 2>I'm up to twenty ton of sew tube aluminium. I'm

105
00:06:12.439 --> 00:06:15.160
<v Speaker 2>not an idiot. I'm not going to report it. And

106
00:06:15.240 --> 00:06:17.120
<v Speaker 2>then the guy put me back into taxi. I say,

107
00:06:17.360 --> 00:06:22.000
<v Speaker 2>I was so pissed off that when we're the next

108
00:06:22.079 --> 00:06:27.279
<v Speaker 2>iteration of the conversation around the glass Parker, that's the

109
00:06:27.399 --> 00:06:30.720
<v Speaker 2>verse of the scoop two. Otherwise they just put everything

110
00:06:30.800 --> 00:06:34.759
<v Speaker 2>in direct So thank you, mister Tomago plant manager. You

111
00:06:34.920 --> 00:06:36.160
<v Speaker 2>have created the SCOP two.

112
00:06:36.759 --> 00:06:39.399
<v Speaker 1>Yeah, I've heard the story. I really love it, and

113
00:06:39.399 --> 00:06:42.720
<v Speaker 1>it's an honor to talk to the originator of sculpture

114
00:06:42.720 --> 00:06:45.639
<v Speaker 1>accounting and to see where we're at with it today. Right,

115
00:06:45.680 --> 00:06:49.199
<v Speaker 1>Obviously it's been a huge stet. Let's also realize that

116
00:06:49.279 --> 00:06:51.680
<v Speaker 1>it was very very important to have the protocol set

117
00:06:51.759 --> 00:06:54.319
<v Speaker 1>up to start to track these emissions. Now, I guess

118
00:06:54.519 --> 00:06:57.040
<v Speaker 1>where we're at today now the protocol is being revised.

119
00:06:57.079 --> 00:07:00.480
<v Speaker 1>We're in this phase where ninety six or seven percent

120
00:07:00.480 --> 00:07:02.279
<v Speaker 1>to the S and P five hundred are using this now.

121
00:07:02.279 --> 00:07:06.519
<v Speaker 1>So it's a huge success. Companies reporting publicly based on

122
00:07:06.560 --> 00:07:09.720
<v Speaker 1>the protocol consume more power than India annually. Right, So

123
00:07:09.800 --> 00:07:13.439
<v Speaker 1>this is big stuff. And the incentive structures. We must

124
00:07:13.480 --> 00:07:15.720
<v Speaker 1>get them right for the next couple a decade of

125
00:07:15.759 --> 00:07:18.639
<v Speaker 1>the carbonization, and now we're really at this fork in

126
00:07:18.680 --> 00:07:21.120
<v Speaker 1>the road. There's an update process going on. There's people

127
00:07:21.120 --> 00:07:23.199
<v Speaker 1>that don't necessarily agree on the direction of travel.

128
00:07:23.560 --> 00:07:26.560
<v Speaker 2>The interesting thing is that the protocol, the original one,

129
00:07:26.959 --> 00:07:30.480
<v Speaker 2>did not really address green power because there was simply

130
00:07:30.720 --> 00:07:33.519
<v Speaker 2>no wind or no solar indus twenty five years ago.

131
00:07:34.040 --> 00:07:38.000
<v Speaker 2>And in fact, the old green power reporting came about

132
00:07:38.040 --> 00:07:40.639
<v Speaker 2>fifteen years ago in a bit of a disorganized way

133
00:07:41.360 --> 00:07:46.439
<v Speaker 2>through system of green certificates, and talk a bit about how,

134
00:07:46.639 --> 00:07:50.120
<v Speaker 2>in fact the reporting of green power had a bit

135
00:07:50.160 --> 00:07:53.279
<v Speaker 2>of a parallel truck to CO two and now they're

136
00:07:53.279 --> 00:07:53.959
<v Speaker 2>going to merge.

137
00:07:54.279 --> 00:07:57.600
<v Speaker 1>The reporting of green power initially evolved in a kind

138
00:07:57.639 --> 00:08:01.680
<v Speaker 1>of a simplistic way through man're bal anti tracking systems,

139
00:08:01.720 --> 00:08:04.000
<v Speaker 1>which are essential to make sure that you're the one

140
00:08:04.040 --> 00:08:06.560
<v Speaker 1>who's actually claiming that unit of energy and that's not

141
00:08:06.600 --> 00:08:09.279
<v Speaker 1>being claimed by three other people. The way the systems

142
00:08:09.279 --> 00:08:12.360
<v Speaker 1>were set up initially probably made sense, but they took

143
00:08:12.399 --> 00:08:17.439
<v Speaker 1>a very light consideration of how power markets work and

144
00:08:17.480 --> 00:08:20.199
<v Speaker 1>how the electricity flows through the system. So the way

145
00:08:20.279 --> 00:08:22.879
<v Speaker 1>today it's still the standard that the way we track

146
00:08:22.920 --> 00:08:25.759
<v Speaker 1>and claim green power is based on what we call

147
00:08:25.800 --> 00:08:29.639
<v Speaker 1>an annual matching. So you can claim solar power produced

148
00:08:29.759 --> 00:08:32.519
<v Speaker 1>in the middle of the day at three o'clock in

149
00:08:32.559 --> 00:08:36.600
<v Speaker 1>the morning, or you can claim to use green power

150
00:08:36.639 --> 00:08:40.840
<v Speaker 1>produced in Norway in Spain. For example, today Norway exports

151
00:08:41.000 --> 00:08:43.600
<v Speaker 1>five to ten times more green power certificates than it

152
00:08:43.600 --> 00:08:47.600
<v Speaker 1>does physical electricity. So the way we've set up the system,

153
00:08:47.919 --> 00:08:52.320
<v Speaker 1>it's not really properly tracking the real emissions being delivered

154
00:08:52.320 --> 00:08:55.320
<v Speaker 1>to consumers, and that's something that we urgently need to address.

155
00:08:55.759 --> 00:08:58.240
<v Speaker 1>We have companies, for example, all of the big tech

156
00:08:58.240 --> 00:09:01.480
<v Speaker 1>companies today, they're all already one hundred renewable. This just

157
00:09:01.559 --> 00:09:04.600
<v Speaker 1>doesn't make sense. They've made important investments and renewables, which

158
00:09:04.679 --> 00:09:07.200
<v Speaker 1>is great, but to say job done, this is really

159
00:09:07.200 --> 00:09:08.240
<v Speaker 1>not where're at right now.

160
00:09:08.559 --> 00:09:12.279
<v Speaker 2>Look I like what you say, because again first there's nothing,

161
00:09:12.960 --> 00:09:16.159
<v Speaker 2>then there's a standarud and then people try to dodge

162
00:09:16.159 --> 00:09:19.120
<v Speaker 2>the standard. You're right, in the past ten years will

163
00:09:19.120 --> 00:09:22.840
<v Speaker 2>do that ESG movement by green and so on. We've

164
00:09:22.879 --> 00:09:27.240
<v Speaker 2>seen extraordinary claim of people say we're one hundred percent renewable,

165
00:09:27.600 --> 00:09:30.399
<v Speaker 2>but as you say, a guy's gonna buy green certify

166
00:09:30.440 --> 00:09:34.799
<v Speaker 2>kids in Arizona and is reporting in Delaware. The grids

167
00:09:34.840 --> 00:09:38.240
<v Speaker 2>are not even connected together, but you know it's all

168
00:09:38.240 --> 00:09:42.679
<v Speaker 2>well and fine, which leads to the two main problems

169
00:09:42.720 --> 00:09:46.879
<v Speaker 2>that you have highlighted. The one is the temporality and

170
00:09:47.000 --> 00:09:49.320
<v Speaker 2>the second is the geography. And I know there's a

171
00:09:49.399 --> 00:09:53.720
<v Speaker 2>third one we called additionality. But additionality have heard additionality

172
00:09:53.799 --> 00:09:56.759
<v Speaker 2>for more than twenty five years. People still talk about it.

173
00:09:56.759 --> 00:10:01.639
<v Speaker 2>It's impossible. So let's explain exactly what is the matching

174
00:10:01.879 --> 00:10:04.600
<v Speaker 2>from a geographical point of view and time point of view.

175
00:10:04.919 --> 00:10:08.960
<v Speaker 1>Yeah. Absolutely, these are like fundamentals to electricity. So what

176
00:10:09.000 --> 00:10:11.480
<v Speaker 1>we need is on a power system is to in

177
00:10:11.519 --> 00:10:16.240
<v Speaker 1>the temporal aspect to match ultimately demand with clean power

178
00:10:16.639 --> 00:10:20.480
<v Speaker 1>on an hourly basis. Right, that's how the power markets work,

179
00:10:20.840 --> 00:10:23.480
<v Speaker 1>that's how the grid works today. We're trying to do

180
00:10:23.519 --> 00:10:25.279
<v Speaker 1>that on an annual basis. So you can be one

181
00:10:25.320 --> 00:10:28.480
<v Speaker 1>hundred percent solar powered, that's not right. What we need

182
00:10:28.639 --> 00:10:31.639
<v Speaker 1>is to do it in an hourly basis. So, for example,

183
00:10:31.960 --> 00:10:35.360
<v Speaker 1>if you want to be powered renewable energy at night time,

184
00:10:35.559 --> 00:10:38.200
<v Speaker 1>well then you have to build a battery and put

185
00:10:38.200 --> 00:10:40.039
<v Speaker 1>that solar into it during the day and then put

186
00:10:40.080 --> 00:10:41.799
<v Speaker 1>it out at night. So we set up that incentive

187
00:10:41.799 --> 00:10:46.000
<v Speaker 1>structure for storage, something that is completely lacking today in

188
00:10:46.000 --> 00:10:48.919
<v Speaker 1>the standard. So that's number one. Number two is this

189
00:10:48.960 --> 00:10:52.840
<v Speaker 1>geographical boundary today we've just taken this really broad view,

190
00:10:53.120 --> 00:10:56.879
<v Speaker 1>especially in Europe and the United States, saying in the US,

191
00:10:57.279 --> 00:11:01.080
<v Speaker 1>we'll just consider it all completely interconnected. As we know,

192
00:11:01.519 --> 00:11:03.759
<v Speaker 1>hardly exports any power to the rest of the US.

193
00:11:03.799 --> 00:11:06.000
<v Speaker 1>But you could be one hundred percent power by Texas

194
00:11:06.000 --> 00:11:08.960
<v Speaker 1>wind in New York, while in reality you're pulling gas

195
00:11:08.960 --> 00:11:11.440
<v Speaker 1>from the grid in New York. So you have this disconnect.

196
00:11:11.600 --> 00:11:15.679
<v Speaker 1>You're not addressing grid congestion, you're not actually tackling the

197
00:11:15.720 --> 00:11:19.440
<v Speaker 1>hardest hours of decarbonization where you're consuming that power. And

198
00:11:19.480 --> 00:11:21.519
<v Speaker 1>we need to address these two things. This is not

199
00:11:21.559 --> 00:11:24.960
<v Speaker 1>a radical concept. This is literally how power markets work today, right.

200
00:11:25.000 --> 00:11:27.360
<v Speaker 1>We need to just bring that logical power markets and

201
00:11:27.399 --> 00:11:29.480
<v Speaker 1>bring it into the carbon and green world.

202
00:11:29.879 --> 00:11:33.600
<v Speaker 2>As usual, the fussy few lobbies say, I hear you,

203
00:11:33.879 --> 00:11:37.399
<v Speaker 2>but it's not possible, it's too costly. I've heard that

204
00:11:37.480 --> 00:11:41.240
<v Speaker 2>for twenty five years. So everything is impossible. That's the

205
00:11:41.320 --> 00:11:44.840
<v Speaker 2>role of energy Tag. Energy tag is really about putting

206
00:11:45.000 --> 00:11:50.159
<v Speaker 2>forward thinking companies together to demonstrate that technically those temporal

207
00:11:50.200 --> 00:11:53.639
<v Speaker 2>machine and geographical machine are possible. Now, of course you're

208
00:11:53.679 --> 00:11:56.320
<v Speaker 2>not going to get two hundred percent immediately unless you're

209
00:11:56.360 --> 00:11:59.960
<v Speaker 2>in Norway or Quebec or Brazil, but at least you know,

210
00:12:00.120 --> 00:12:02.240
<v Speaker 2>oh and at least you can track and you can

211
00:12:02.279 --> 00:12:05.399
<v Speaker 2>track pog guys, because otherwise, as you say, everybody wins,

212
00:12:05.440 --> 00:12:07.840
<v Speaker 2>you know, every ah, I'm clean, I'm clean, I'm clean,

213
00:12:08.120 --> 00:12:11.080
<v Speaker 2>which means nothing. So probably go a bit inside the

214
00:12:11.159 --> 00:12:12.080
<v Speaker 2>role of energy tag.

215
00:12:12.559 --> 00:12:14.960
<v Speaker 1>I suppose we have a couple of different functions. Obviously

216
00:12:14.960 --> 00:12:17.120
<v Speaker 1>one of them mentions is like being part of the

217
00:12:17.200 --> 00:12:20.519
<v Speaker 1>update processes for greenized gas protocol or in regulatory processes

218
00:12:20.559 --> 00:12:22.840
<v Speaker 1>saying we need to do accounting in this more granular

219
00:12:22.840 --> 00:12:26.080
<v Speaker 1>hourly way. But also we bring folks together and figure

220
00:12:26.120 --> 00:12:28.360
<v Speaker 1>out how do we do this tracking. We have open

221
00:12:28.399 --> 00:12:30.879
<v Speaker 1>source standards for example, how to do this hourly tracking.

222
00:12:31.120 --> 00:12:33.559
<v Speaker 1>And this is something that's now proven all over the

223
00:12:33.600 --> 00:12:37.000
<v Speaker 1>world on consumers of all different sizes. This can be

224
00:12:37.120 --> 00:12:40.759
<v Speaker 1>enabled directly by electricity suppliers like your Octopus Energy in

225
00:12:40.799 --> 00:12:43.120
<v Speaker 1>the UK, for example, have an hourly matching tariff for

226
00:12:43.159 --> 00:12:46.879
<v Speaker 1>their business customers. We've shown this working also in the

227
00:12:47.039 --> 00:12:51.120
<v Speaker 1>US in Asia Pacific region, because again, right, we're fundamentally

228
00:12:51.120 --> 00:12:53.600
<v Speaker 1>taking data as they're already and just matching that together

229
00:12:53.679 --> 00:12:57.000
<v Speaker 1>on an hourly basis. So the tracking and the accounting

230
00:12:57.080 --> 00:13:01.559
<v Speaker 1>is absolutely possible. Some companies like Google are already reporting

231
00:13:01.600 --> 00:13:06.840
<v Speaker 1>this voluntarily publicly across their global operations. So of course

232
00:13:07.000 --> 00:13:08.799
<v Speaker 1>once we change these rules, there'll be a kind of

233
00:13:08.840 --> 00:13:11.320
<v Speaker 1>a phase in period, etc. But we've shown that it's

234
00:13:11.360 --> 00:13:14.399
<v Speaker 1>technically feasible to do this accounting. Now, as you said,

235
00:13:14.879 --> 00:13:16.919
<v Speaker 1>is it going to be easy for everyone to be

236
00:13:16.919 --> 00:13:19.200
<v Speaker 1>one hundred percent renewable and one hundred percent clean everywhere?

237
00:13:19.240 --> 00:13:22.559
<v Speaker 1>Absolutely not, because it's not easy to be that in reality.

238
00:13:22.600 --> 00:13:23.960
<v Speaker 1>And that's what we need to kind of take a

239
00:13:23.960 --> 00:13:27.080
<v Speaker 1>step back here and say, right, where are we actually

240
00:13:27.120 --> 00:13:30.200
<v Speaker 1>at and what investments do we need to make to

241
00:13:30.360 --> 00:13:33.960
<v Speaker 1>really get to being powered by clean power around the clock.

242
00:13:34.159 --> 00:13:36.240
<v Speaker 1>And that is kind of the paradigm shift we need

243
00:13:36.279 --> 00:13:39.360
<v Speaker 1>to have. We need to move away from feeling that

244
00:13:39.559 --> 00:13:42.600
<v Speaker 1>being one hundred percent renewable by fudging the rules is

245
00:13:42.600 --> 00:13:45.039
<v Speaker 1>the way forward, right, we need to take a step

246
00:13:45.080 --> 00:13:47.600
<v Speaker 1>back and think, well, obviously a plenty of solar and

247
00:13:47.679 --> 00:13:52.200
<v Speaker 1>wind demand response flexibility, clean firm technologies they all have

248
00:13:52.279 --> 00:13:53.960
<v Speaker 1>to come into the mix if we're going to actually

249
00:13:54.000 --> 00:13:56.519
<v Speaker 1>decarbonize the grid and deliver cheap power around the clock

250
00:13:56.559 --> 00:13:58.200
<v Speaker 1>and get rid of fossil fuels in all hours.

251
00:13:58.600 --> 00:14:02.159
<v Speaker 2>That's all when I'm fine, But that's to twenty one

252
00:14:02.679 --> 00:14:08.279
<v Speaker 2>and since then you've got the crazy rise of data centers,

253
00:14:08.720 --> 00:14:12.320
<v Speaker 2>and of course big tech has been a big proponent

254
00:14:12.559 --> 00:14:18.399
<v Speaker 2>of clean energy. Some play the game, as you name them, Microsoft, Google,

255
00:14:18.960 --> 00:14:23.840
<v Speaker 2>but others decide to break the thermometer and design their

256
00:14:23.879 --> 00:14:27.200
<v Speaker 2>own accounting system. And I'm going to name them it's

257
00:14:27.279 --> 00:14:30.960
<v Speaker 2>Meta and Amazon, Meta and Amazon. I've decided, like man

258
00:14:31.039 --> 00:14:33.200
<v Speaker 2>the twenty four seven. You know, it's just going to

259
00:14:33.279 --> 00:14:35.600
<v Speaker 2>show that I'm pouring all all my new data center

260
00:14:35.759 --> 00:14:41.080
<v Speaker 2>with gas turbines. So I invent a new self reporting protocol.

261
00:14:41.399 --> 00:14:44.840
<v Speaker 2>But like weworker used to do, and of course they're

262
00:14:44.840 --> 00:14:47.240
<v Speaker 2>going to show everything isthing's great. You know, data center

263
00:14:47.320 --> 00:14:50.000
<v Speaker 2>in West Virginia is going to be compensated by a

264
00:14:50.039 --> 00:14:53.399
<v Speaker 2>wind farm in India. They don't want to play the game.

265
00:14:53.440 --> 00:14:57.039
<v Speaker 2>And you know, I'm saying it here, this is ridiculous,

266
00:14:57.279 --> 00:14:59.480
<v Speaker 2>doesn't make any sense, but they've put Pyre mooney. So

267
00:14:59.600 --> 00:15:04.399
<v Speaker 2>every time you hear somebody promoting Meta or Amazon Accounting

268
00:15:04.759 --> 00:15:08.600
<v Speaker 2>know that they're paid. They are paid all the consultants,

269
00:15:08.840 --> 00:15:11.559
<v Speaker 2>and every time I call them directly and guy say,

270
00:15:11.600 --> 00:15:13.960
<v Speaker 2>it's that's stupid, the guys say, yeah, I know, but

271
00:15:14.320 --> 00:15:17.159
<v Speaker 2>you know what, I got my check. Let's go back

272
00:15:17.200 --> 00:15:21.000
<v Speaker 2>to when we did the Scope two. We had very

273
00:15:21.159 --> 00:15:23.840
<v Speaker 2>very few data. Basically we say we're going to take

274
00:15:23.919 --> 00:15:26.600
<v Speaker 2>some averages and so on. But now, as you said,

275
00:15:26.600 --> 00:15:29.600
<v Speaker 2>with the digital we know what's going on every five minutes,

276
00:15:30.000 --> 00:15:32.960
<v Speaker 2>hour and so on. And the philosophy of the Greeners

277
00:15:32.960 --> 00:15:37.039
<v Speaker 2>gas potocol at the beginning is when a better measurement

278
00:15:37.240 --> 00:15:40.879
<v Speaker 2>is introduced, we're going to use the best. So now

279
00:15:41.039 --> 00:15:44.919
<v Speaker 2>probably explain what's going on on the Scope two, which

280
00:15:44.960 --> 00:15:46.600
<v Speaker 2>is basically power consumption.

281
00:15:47.080 --> 00:15:51.200
<v Speaker 1>Basically, we're at an inflection point and we've demonstrated that

282
00:15:51.240 --> 00:15:53.759
<v Speaker 1>people can can go further than the current rules alive. Right,

283
00:15:53.840 --> 00:15:56.759
<v Speaker 1>So if you're building out a data center, for example,

284
00:15:57.320 --> 00:16:01.000
<v Speaker 1>you can actually measure where you're at on an hourly

285
00:16:01.039 --> 00:16:04.759
<v Speaker 1>basis and really which how are really supplying your data center,

286
00:16:04.840 --> 00:16:07.840
<v Speaker 1>not from some disconnected, faraway land room, like really in

287
00:16:07.840 --> 00:16:10.200
<v Speaker 1>the same grid region. The solutions are out there today

288
00:16:10.200 --> 00:16:12.200
<v Speaker 1>to do that. Then you obviously need to think about

289
00:16:12.200 --> 00:16:15.639
<v Speaker 1>how you're procuring electricity. There's the really interesting analysis done

290
00:16:15.679 --> 00:16:17.639
<v Speaker 1>by the IA a few months ago on how to

291
00:16:17.679 --> 00:16:20.840
<v Speaker 1>power data centers. There's a very interesting finding. Like a

292
00:16:20.879 --> 00:16:23.120
<v Speaker 1>lot of the interesting stuff, it's very deep in the report,

293
00:16:23.159 --> 00:16:26.039
<v Speaker 1>page seventy or eighty how do we power data centers?

294
00:16:26.039 --> 00:16:28.440
<v Speaker 1>Then what they find in Europe and China is that

295
00:16:28.720 --> 00:16:32.159
<v Speaker 1>we can on an eighty percent hourly matching basis power

296
00:16:32.320 --> 00:16:37.240
<v Speaker 1>data centers with hybridized renewables. So with solar wind batteries

297
00:16:37.480 --> 00:16:42.080
<v Speaker 1>brought together, this can be cheaper than the standard industry

298
00:16:42.159 --> 00:16:44.960
<v Speaker 1>retail price of electricity in Europe and China. So this

299
00:16:45.039 --> 00:16:48.720
<v Speaker 1>is the future. Battery prices are collapsing, renewables are getting

300
00:16:48.759 --> 00:16:51.320
<v Speaker 1>cheaper and cheaper. This is the way forward to really

301
00:16:51.399 --> 00:16:54.519
<v Speaker 1>really power a data center or any other type of

302
00:16:54.600 --> 00:16:57.399
<v Speaker 1>large industrial load or facility. Right. So this is what

303
00:16:57.879 --> 00:17:00.200
<v Speaker 1>we need to do, and we need the accounting structure

304
00:17:00.320 --> 00:17:04.200
<v Speaker 1>and framework to incentivize that type of behavior. Luckily that

305
00:17:04.359 --> 00:17:07.279
<v Speaker 1>is happening right and so the Greenhouse Gas Protocol we've

306
00:17:07.319 --> 00:17:09.400
<v Speaker 1>been in the technical working Group, I'm a member of

307
00:17:09.400 --> 00:17:12.000
<v Speaker 1>that for the last year or so. The direction of

308
00:17:12.039 --> 00:17:15.680
<v Speaker 1>travel is very clear. It's towards this granularity. As you mentioned,

309
00:17:15.720 --> 00:17:18.359
<v Speaker 1>the tools are there now, we're going towards hourly and

310
00:17:18.400 --> 00:17:22.119
<v Speaker 1>local matching. That's in the proposal. Public comment coming in October.

311
00:17:22.240 --> 00:17:23.839
<v Speaker 1>So it's a really exciting time.

312
00:17:24.680 --> 00:17:28.319
<v Speaker 2>What should people who think like us? How can we

313
00:17:28.480 --> 00:17:32.400
<v Speaker 2>support the inclusion of twenty four to seven granular accounting

314
00:17:32.880 --> 00:17:35.880
<v Speaker 2>inside the scoop too? Sorry it looks like a bit complex,

315
00:17:36.359 --> 00:17:39.039
<v Speaker 2>but that's where we're right right now. The people who

316
00:17:39.079 --> 00:17:43.079
<v Speaker 2>are against are all oil lobbyists. They just paid for that.

317
00:17:43.440 --> 00:17:46.279
<v Speaker 2>I've seen that crowd for twenty five years. The people

318
00:17:46.319 --> 00:17:50.680
<v Speaker 2>who are against our oil lobbyist period killian. Where do

319
00:17:50.759 --> 00:17:53.480
<v Speaker 2>we go and comment in favor of the inclusion?

320
00:17:54.160 --> 00:17:56.559
<v Speaker 1>So there's going to be a public common period in October,

321
00:17:56.599 --> 00:18:00.200
<v Speaker 1>and it's as you say, it's essential that everyone that

322
00:18:00.279 --> 00:18:03.160
<v Speaker 1>they be a company, an academic and NGO listening to

323
00:18:03.200 --> 00:18:07.279
<v Speaker 1>this spread the word. It's super important that you reply

324
00:18:07.400 --> 00:18:11.519
<v Speaker 1>to that public comment. And thankfully, the Technical Working Group,

325
00:18:11.759 --> 00:18:14.640
<v Speaker 1>the governance of the Greenhouse Cast Protocol are fully behind

326
00:18:14.839 --> 00:18:18.240
<v Speaker 1>this proposed direction of travel towards hourly local accounting for

327
00:18:18.279 --> 00:18:20.720
<v Speaker 1>our large consumers. This is not for SMEs that we're

328
00:18:20.720 --> 00:18:22.799
<v Speaker 1>talking about right here, there's going to be a transition

329
00:18:22.839 --> 00:18:25.680
<v Speaker 1>into this stuff. As you say, it's definitely not impossible.

330
00:18:25.799 --> 00:18:27.799
<v Speaker 1>It's the only way to do the accounting accurately, right,

331
00:18:28.000 --> 00:18:31.799
<v Speaker 1>So it's super important follow energy tag on LinkedIn, follow

332
00:18:31.839 --> 00:18:34.359
<v Speaker 1>me on LinkedIn, sign up to our newsletter on our website.

333
00:18:34.400 --> 00:18:37.359
<v Speaker 1>We'll be communicating about this really widely and making sure

334
00:18:37.440 --> 00:18:39.920
<v Speaker 1>that you guys know when to comment and what to

335
00:18:39.960 --> 00:18:41.279
<v Speaker 1>say in supporting these rules.

336
00:18:41.799 --> 00:18:47.079
<v Speaker 2>Well, this is fantastic. Killian. Also in London with gone Wable,

337
00:18:47.240 --> 00:18:50.119
<v Speaker 2>we're having this big day the tenth in October, so

338
00:18:50.240 --> 00:18:53.480
<v Speaker 2>that in two weeks time where we go also deep

339
00:18:53.519 --> 00:18:57.000
<v Speaker 2>into power purchase agreement linked into twenty four to seven.

340
00:18:57.440 --> 00:19:00.880
<v Speaker 2>And people say it's complex, No it's not, No, it's not.

341
00:19:01.359 --> 00:19:04.680
<v Speaker 2>And as you said, having some green certificate coming out

342
00:19:04.680 --> 00:19:08.680
<v Speaker 2>of Iceland, whereas Iceland is not connected to any greedy

343
00:19:08.720 --> 00:19:12.279
<v Speaker 2>in your job, that is ridiculous.

344
00:19:11.559 --> 00:19:13.880
<v Speaker 1>One hundred percent. And you know, we hear this, Oh

345
00:19:13.920 --> 00:19:17.400
<v Speaker 1>it's not possible, but you know why then, right. The

346
00:19:17.400 --> 00:19:19.920
<v Speaker 1>people who understand the grid the most and the power

347
00:19:19.920 --> 00:19:23.000
<v Speaker 1>markets the most are the system operators in Europe. They're

348
00:19:23.039 --> 00:19:24.680
<v Speaker 1>put out a paper a couple of years ago calling

349
00:19:24.680 --> 00:19:26.920
<v Speaker 1>for the exact changes that are being proposed right now.

350
00:19:27.440 --> 00:19:29.960
<v Speaker 1>They wouldn't be calling for things that were infeasible that

351
00:19:30.039 --> 00:19:32.480
<v Speaker 1>were bad for the system. They're independent, they don't have

352
00:19:32.480 --> 00:19:34.599
<v Speaker 1>a skin in the game and in corporate carbon accounting,

353
00:19:34.680 --> 00:19:37.240
<v Speaker 1>and they're very clear and so eat very clear this

354
00:19:37.319 --> 00:19:39.400
<v Speaker 1>is the direction of travel. We need to have to

355
00:19:39.480 --> 00:19:43.279
<v Speaker 1>integrate renewables more cost effectively into our system. So there

356
00:19:43.319 --> 00:19:46.799
<v Speaker 1>you have it. Obviously, there's companies doing this. There's IA Research,

357
00:19:46.920 --> 00:19:50.319
<v Speaker 1>Princeton Research, MIT Research showing that this approach will deliver

358
00:19:50.440 --> 00:19:53.599
<v Speaker 1>more grid decarbonization, will incentivize the technologies we need to

359
00:19:53.640 --> 00:19:56.240
<v Speaker 1>deliver clean power and the clock. It's a pretty broad

360
00:19:56.240 --> 00:19:59.200
<v Speaker 1>coalition of people who are in favor of these changes,

361
00:19:59.359 --> 00:20:01.960
<v Speaker 1>and that's key. It's not just one group, it's a

362
00:20:02.160 --> 00:20:05.519
<v Speaker 1>broad perspective. This has also already been adopted in regulations

363
00:20:05.559 --> 00:20:07.319
<v Speaker 1>in Europe and the US as well for things like

364
00:20:07.559 --> 00:20:10.680
<v Speaker 1>green hydrogen accounting and subsidies. So this is not coming

365
00:20:10.720 --> 00:20:12.640
<v Speaker 1>out of the blue. It's just common sense, and we

366
00:20:12.720 --> 00:20:15.279
<v Speaker 1>need to stay rational and kind of respond to some

367
00:20:15.319 --> 00:20:17.240
<v Speaker 1>of the criticism in the way that it needs to

368
00:20:17.240 --> 00:20:17.920
<v Speaker 1>be responded to.

369
00:20:18.319 --> 00:20:21.680
<v Speaker 2>Yeah. Sorry, sometimes I get a bit to fight up.

370
00:20:22.000 --> 00:20:23.480
<v Speaker 1>You know, I think a little bit of a missed

371
00:20:23.480 --> 00:20:26.359
<v Speaker 1>opportunity not to focus more on this approach, because at

372
00:20:26.400 --> 00:20:30.079
<v Speaker 1>the end of the day, the price of renewables combined

373
00:20:30.119 --> 00:20:32.880
<v Speaker 1>with storage is dropping super fast, and the price of

374
00:20:32.920 --> 00:20:35.559
<v Speaker 1>gas well, god only knows it's going up in the US,

375
00:20:35.680 --> 00:20:39.119
<v Speaker 1>it's extremely volatile and unpredictable. In Europe's that's your basically

376
00:20:39.119 --> 00:20:41.640
<v Speaker 1>your alternative in terms of electricity sourcing in a lot

377
00:20:41.640 --> 00:20:43.759
<v Speaker 1>of parts of the world. So that's the bet to

378
00:20:43.839 --> 00:20:46.519
<v Speaker 1>take in the long run. The hedging benefit we did is,

379
00:20:46.680 --> 00:20:48.119
<v Speaker 1>you know, as part of a study done by your

380
00:20:48.160 --> 00:20:50.119
<v Speaker 1>electric tex Parker th Fe years ago showing the massive

381
00:20:50.160 --> 00:20:53.559
<v Speaker 1>hedging benefit to hepas that are more around the clock,

382
00:20:53.599 --> 00:20:57.160
<v Speaker 1>maybe matching eighty ninety percent of your demand. It's shielding

383
00:20:57.200 --> 00:21:00.519
<v Speaker 1>you against those high electricity price years and times. This

384
00:21:00.599 --> 00:21:03.960
<v Speaker 1>is not only about being transparent and green, it's also

385
00:21:04.079 --> 00:21:07.279
<v Speaker 1>just about smart business sense going forward and realizing that

386
00:21:07.440 --> 00:21:09.599
<v Speaker 1>round the clock renewables are going to be the more

387
00:21:09.599 --> 00:21:11.480
<v Speaker 1>competitive option in the decades to come.

388
00:21:11.920 --> 00:21:15.039
<v Speaker 2>Well, Killiana, you're such a good Irish guy. I'm not

389
00:21:15.079 --> 00:21:17.440
<v Speaker 2>sure I'm going to bring a job back on the show.

390
00:21:19.759 --> 00:21:21.880
<v Speaker 1>That's you saying that, not mea It was.

391
00:21:21.960 --> 00:21:24.440
<v Speaker 2>Great to have you. This is the pod. Guys, we're

392
00:21:24.480 --> 00:21:26.640
<v Speaker 2>going forward and thank you for your work, and we're

393
00:21:26.640 --> 00:21:28.519
<v Speaker 2>going to get that scoop two nailed.

394
00:21:28.880 --> 00:21:33.559
<v Speaker 1>Thanks so much, Laura, thank you for listening to Redefining Energy.

395
00:21:34.000 --> 00:21:39.000
<v Speaker 1>Don't forget to rate the show and subscribe on Apple, Podcast, Spotify,

396
00:21:39.440 --> 00:21:42.000
<v Speaker 1>or the platform of your choice.
