What Does Carbon Neutral Electricity Mean for Your Home?

30 Oct, 2018 6:56:44 PM / by Quek Leng Chuang


The eco-friendly movement is slowly gaining traction in Singapore, with more followers and attention in recent years. New green players in the electricity market include "carbon neutral electricity"- what exactly is this?

There's lots of appliances at home that require electricity, and it's safe to say that electricity is a mandatory basic need for almost every Singaporean, in one way or another. However, to generate electricity to power all your devices, a huge environmental cost is incurred- 22 million tons of CO2 emissions per year to be exact, in Singapore’s context, thanks to the combustion of natural gas. Now expand this damage to a global scale. The result? Global warming.

Engineers at the National Environment Agency (NEA) have worked out that 0.413 Metric Tons (MT) of CO2 are discharged into our atmosphere for every 1 Megawatt-hour (MWh) of power we consume. This ratio is termed the Grid Emission Factor, allowing each consumer to calculate his or her carbon footprint. For example, an electricity consumer using 10 MWh per month has a carbon footprint of 4.13 MT of CO2. On the flip side, in order to “neutralize” the carbon footprint of 10 MWh per month electricity consumption, 4.13 MT of CO2 Carbon Credit Offsets can be purchased from the international carbon market.

These numbers may seem small, but multiply them across global scales and the collective effect will be apparent; in fact it already is, as observed from trends in global warming and the increased frequency of intense weather events, according to reports from the Intergovernmental Panel on Climate Change (IPCC).

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What exactly are Carbon Credit Offsets?

Greenhouse gases released into the atmosphere are the main contributor to climate change contributing to global warming. CO2 makes up over half (about 65%) of all greenhouse gases, which makes reducing one’s CO2 footprint a good indicator of effort toward fighting climate change. This has given rise to the global carbon industry, with international trading agreements and platforms to facilitate transactions.

These actions aren't just limited to large corporations or institutions, you too as an individual can take part. Carbon mitigation efforts can be monetized by trading Carbon Credit Offsets, incentivising players to continuously reduce their carbon footprint in this vibrant economy.

What role does ES Power play in the carbon market?

By providing carbon-neutral electricity, a retailer commits to purchase equivalent CO2 credits to support the entire electricity consumption of all their customers. The value of these credits will then be channeled towards green projects that work to reduce global carbon burdens. The continuous off-taking of Carbon Credit Offsets drives the carbon economy, and induces more emission-reduction programs around the world.

By purchasing carbon-neutral electricity, you support global emission-reduction programs to fight climate change, creating a more liveable planet not just for yourself and your loved ones, but also for generations to come. Take the step towards a carbon-neutral future here.

Topics: Residential

Quek Leng Chuang

Written by Quek Leng Chuang

LengChuang is a chemical engineer and an expert in carbonomics. He is the co-founder and owner of Environmental Solutions (Asia) Pte Ltd and ES Power.