Hybrid Project (co-located CFE generation & storage)

Figure 1: Example Hybrid Solar Plus Storage Emissions and LME Profile

“Virtual Hybrid” (stand-alone storage)

This use case enables a corporate offtaker to sell PECs from an operational renewable PPA to a battery to neutralize charging activity. The battery operator then sells the issued PECs back to the same offtaker to enhance the offtaker’s carbon impact and capture the carbon arbitrage. This effectively increases the total avoided emissions, even considering the roundtrip efficiency losses.

Figure 2: Example “Virtual Hybrid” Solar Plus Storage Emissions and LME Profile

Table 1: Summary of Contract Structures

Approach	Source of PECs	Customer of PECs
Full Contract – Bilateral “Virtual Hybrid”	Low-Impact PEC Agreement with Corporate Buyer or Utility with an Operational Asset	High-Impact PEC Agreement with the same party.
Full Contract – Trilateral	PEC Agreement with Renewable Generator	Offtake PEC Agreement with Corporate Buyer or Utility
Supplier Contract Only	PEC Agreement with Renewable Generator	Sell high-impact PECs on Marketplace
Offtaker Contract Only	Buy low-impact PECs on Marketplace	Offtake PEC Agreement with Corporate Buyer or Utility
Full Merchant	Buy low-impact PECs on Marketplace	Sell high-impact PECs on Marketplace