Are PECs and carbon offsets mutually exclusive?

Both approaches can help battery operators monetize net avoided emissions but a project can only participate in one. This is similar to CFE generators that qualify for carbon offsets if no REC registry is available in the local grid. Carbon offsets are typically used for scope 1 and 3 emissions since most corporations use RECs for market-based scope 2 reporting.

The traditional EAC framework does not account for energy storage. This omission is significant because energy storage is critical in optimizing the timing and efficiency of clean energy usage alongside CFE generation.

The impact of energy storage on the environment is determined by the induced emissions from charging the storage device and the avoided emissions when discharging the stored energy during high-emission periods. By quantifying net emissions and issuing PECs for energy storage, the PEC Registry incentivizes the deployment of storage technologies and provides a more accurate measure of the environmental benefits of clean energy. This framework allows energy storage developers to monetize their emission reduction benefits, encouraging them to operate in ways that maximize their emission reductions.