RE100’s New Technical Criteria Explained

RE100’s updated technical standards take effect on January 1, 2024. These revisions bring major adjustments: a 15-year commissioning deadline for renewable energy plants, tighter boundaries for Europe’s single market, and mandatory sustainability requirements for hydro and biomass energy.

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What Should Be on Your Radar Concerning the New Technical Criteria?

A 15-Year Commissioning or Re-Powering Date Limit

Starting January 1, 2024, RE100 members must secure renewable electricity or Guarantees of Origin (GOs) from power plants constructed or recommissioned within the last 15 years.

An exemption applies to 15% of a company’s overall electricity use. For example:

• If a company sources 50% renewable electricity, 15% of that portion is exempt, while the new date threshold applies to the remaining 35% of total consumption.
• A company sourcing 100% renewable electricity can exempt 15% of its procurement, while the other 85% must meet the 15-year limit.

New Boundaries for the Single Market in Europe

The revised RE100 criteria now align more closely with CDP standards, tightening Europe’s market boundaries. Companies must ensure that renewable electricity claims come from generation within the same market.

Additionally, RE100 has removed eight countries from Europe’s single market list, signaling a stricter approach to ensuring credibility and alignment across the renewable sector.

‘Sustainably’ Sourced Biomass and Hydropower

RE100 acknowledges the role of sustainably generated renewable electricity from biomass and hydropower in achieving decarbonization goals. From January 2024, RE100 will only recognize electricity from these sources if it meets sustainability criteria.

What was once a suggestion is now mandatory. Companies are responsible for ensuring their sources meet requirements, and RE100 recommends third-party certification to verify sustainability credentials.

Grandfathering Existing Contracts

The new criteria include grandfathering provisions. Contracts operational before January 1, 2024, remain compliant until they expire.

Contracts for renewable energy procurement that follow previous rules on European market boundaries, or do not impose commissioning dates, remain valid under RE100 if used to decarbonize electricity consumed before January 1, 2024.

What Is RE100 Aiming to Gain with These New Criteria?

The revised RE100 criteria, updated every two years, aim to adapt to dynamic markets. They seek to:

• Incorporate credible new renewable electricity sources.
• Align with RE100’s mission of carbon-free grids by 2040.
• Increase demand for new renewable capacity through the 15-year limit.

This motivates members to support new projects, strengthens credibility by following market best practices, and empowers companies to advocate for smoother procurement processes. Ultimately, these changes reinforce members’ commitment to advancing the energy transition.

How Do the New Criteria Benefit RE100 Members?

The criteria serve a triple purpose:

1. Validate RE100 members’ claims, cementing their role as global renewable leaders.
2. Empower advocacy, enabling members to push for more renewable capacity and influence grid transformation.
3. Support RE100’s advocacy efforts, driving campaigns that facilitate renewable purchases and incentivize new generation.

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