FAQ: If a country already has a low average grid emissions intensity, does increasing its renewable electricity generation still result in positive GHG impact — and should investors prioritize it?
Yes, it may result in positive GHG impact. Until the grid reaches net zero, there's room for GHG impact if, for example, the intervention displaces fossil generation or has systemic effects (like accelerating coal retirement). Broader impacts may warrant adjustment factors in impact quantification.
Even if a country reaches a net zero grid, GHG impact may occur if, for example, the solution enables electricity export to dirtier grids or addresses future demand.
Electrification is accelerating, and there remains the possibility that systems will fall back on dirty energy sources to meet growing demand or provide backup powe, such as marginal generation by peaker plants. In integrated power markets, clean energy can reduce emissions across borders.
From an investor perspective, grid decarbonization may remain a high-impact lever in some cases, especially when paired with system-wide improvements in reliability, access, and resilience.
