What is Grid Decarbonisation?
The process of reducing the carbon intensity of electricity grids through increased renewable generation and reduced fossil fuel use. UK grid carbon intensity has fallen significantly in recent years.
Why it matters
As the UK grid decarbonises, location-based Scope 2 emissions automatically fall over time. This is good news for carbon targets, but it also means that other reduction measures become relatively more important as the grid factor decreases.
Example
The UK grid emission factor dropped from 0.23 kg CO₂e per kWh in 2020 to 0.21 in 2024. For a company consuming 1 GWh per year, this grid improvement alone reduced Scope 2 emissions by 20 tCO₂e without any operational change.
Related terms
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.
Renewable Energy
Energy from sources that are naturally replenished, including solar, wind, hydroelectric, and biomass. Switching to renewable energy is one of the most effective ways to reduce Scope 2 emissions.
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