In this article, we explore power flow tracing and its role in precisely calculating greenhouse gas (GHG) emissions related to power consumption. We also examine scientific examples and show how advanced technologies use PFT, improve cost allocation, track electricity flows, and enhance carbon accounting for a more transparent and fair energy market through effective sustainability solutions.
What is Power Flow Tracing?
Power Flow Tracing is a collective term for a set of methodologies to calculate power transfers from individual generation points (such as wind farms or coal plants) to specific consumption points or branches (such as households or factories).
It was originally developed to measure transmission losses and set fair prices for power transmission in open electricity markets. It has recently gained significant attention in research and practice for additional applications, such as for the accounting of carbon emissions of electricity use.
Power Flow Tracing's relevance in the transition to net zero
Net zero refers to balancing the amount of greenhouse gases (GHGs) emitted with the amount removed from the atmosphere, effectively reducing net emissions to zero. This is achieved by decreasing emissions and employing carbon removal techniques, such as capturing and storing emissions through natural solutions (e.g., forests, soil) or technology (e.g., carbon capture and storage).
Net zero is a critical goal in tackling climate change and aligns with global agreements such as the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels. Many governments, businesses, and organisations have set net zero targets to be achieved by 2050 or earlier.
In the pursuit of net zero, the role of data has become crucial. High-quality, granular data is essential for accurately assessing emissions across industries, enabling stakeholders to track progress, identify inefficiencies, and implement targeted strategies to reduce carbon footprints effectively. However, access to granular and verified data can be challenging.
Power Flow Tracing addresses this issue by determining the precise fuel mix of power consumption at specific points on the power grid. It verifies whether electricity is sourced from renewables such as wind and solar or from fossil fuels like coal. By applying relevant emission factors, Power Flow Tracing enables the accurate calculation of the carbon footprint associated with energy use.
In practice, the application of Power Flow Tracing to carbon emissions calculations follows these steps:
- Data collection: Grid operators and utilities gather data on electricity generation, transmission, and consumption. This includes information on generation capacity, grid topology, load profiles, and real-time operational data.
- Simulation and modelling: Specialised software and algorithms simulate power flows across the grid. These tools model the physical and operational dynamics of the electricity network, incorporating Kirchhoff's laws, grid constraints, and load dispatch patterns to determine how electricity flows from generators to consumers.
- Carbon intensity analysis: Emissions data associated with each generation source (e.g., coal, gas, renewables) is integrated to calculate the carbon footprint of electricity consumed at specific locations.
- Insights and reporting: The results are visualised through dashboards and reports, enabling stakeholders to identify areas with high carbon usage and enhance grid efficiency.
Global energy policies, regulatory trends, and the market gap
According to the IEA, energy accounts for over three-quarters of global greenhouse gas emissions. Governments worldwide are setting stricter rules to reduce carbon emissions and promote renewable energy, and the energy sector is under increasing pressure to comply with these regulations.
For instance, the European Green Deal aims to make the continent the first climate-neutral region by 2050. This includes policies such as the Fit for 55 packages, which seek to cut greenhouse gas emissions by 55% by 2030, and the Renewable Energy Directive, which sets higher targets for renewable energy adoption. Similarly, the United States is advancing clean energy policies through initiatives like the Inflation Reduction Act, which provides incentives for renewable energy investments. China has also committed to peaking carbon emissions before 2030 and carbon neutrality by 2060.
Governments support grid modernisation, decentralisation, and digitalisation. They also encourage the use of smart grids, energy storage, and demand response systems. These policies shape industry practices and influence investment decisions.
Despite such global trends, widely used certification systems present major structural limitations in carbon footprint assessment.
While Guarantees of Origin (GO) and Renewable Energy Certificates (REC) are widely used to certify that electricity comes from renewable sources, they have several limitations when it comes to accurately assessing the carbon footprint of energy consumption.
First, GOs and RECs certify that a certain amount of electricity was generated from renewable sources, but they do not ensure that renewable energy was consumed at the same time or in the same location. A company may claim "100% renewable electricity" while still relying on fossil fuel-based grid power when renewables are unavailable (e.g., at night or during low-wind periods).
Then, they do not consider the actual carbon intensity. The carbon footprint of electricity depends on the real-time energy mix of the grid. Since GOs and RECs are typically issued on an annual basis, they do not reflect fluctuations in the actual carbon intensity of electricity at the time of consumption. This leads to misaligned carbon accounting that does not accurately represent a company’s true emissions impact.
Finally, these methods pose significant greenwashing risks. Companies can claim carbon neutrality or progress toward net zero without actual reductions in their energy consumption, resulting in misleading sustainability claims. Additionally, the risk of double counting can lead to inflated carbon reduction figures, further undermining credibility and transparency.
ELEKS Dakar Technology integrated to COVERE²: A comprehensive approach to sustainability
The renowned Fraunhofer Institute for Applied Information Technology FIT has published a white paper analysing ELEKS' technology Dakar and its exceptional Power Flow Tracing (PFT) capabilities. By thoroughly examining the scientific foundation of Eleks Dakar PFT and comparing it to other scientific methods in practice, the research provides a comprehensive assessment of its effectiveness. It explores its potential for broader adoption in the energy sector. This publication represents a significant milestone in the development of the COVERE² solution.
ELEKS Dakar technology: certified excellence by Fraunhofer FIT
The PFT functionality of ELEKS' power grid simulation tool Dakar features an approach deeply rooted in foundational PFT scientific literature. As one of ELEKS' oldest and most sophisticated products, Dakar's importance has grown significantly due to the combined pressures of geopolitical challenges and the global Net-Zero agenda. The recent scientific review by Fraunhofer FIT validates its reliability and potential for large-scale implementation.
Integrating ELEKS Dakar PFT to COVERE² approach
The Carbon Footprint of energy consumption powered by ELEKS Dakar is a unique feature of COVERE²to increase the granularity and quality of energy-related emissions data. COVERE² solution streamlines reporting processes, ensures top-notch data quality, and guarantees compliance with relevant standards, all while equipping companies to pilot their sustainability agenda forward. COVERE² has been developed thanks to the support from the European Union via the co-funding of the European Institute of Innovation and Technology. The project lasted for two years under the leadership of the University of Helsinki.
Currently, COVERE² consists of a comprehensive offering covering every stage of your sustainability transformation, from assessments and gap analysis to data identification, collection, data platform selection, reporting, auditing, and disclosure. It will support you to shape the future of your sustainability agenda:
- Compliance. Assured.
Our solutions ensure compliance with all relevant standards, including CSRD, reducing regulatory risks and aligning your business with the latest requirements. - Data. Verified.
We leverage cutting-edge technology and scientifically proven methods to enhance data granularity. All data is rigorously verified, and the methodologies used to ensure accuracy are fully transparent. - Reporting. Simplified.
Our comprehensive platform integrates every step of sustainability reporting—from assessments and data collection to reporting, auditing, and disclosure—streamlining your entire process. - Impact. Amplified.
Reporting is only valuable when it drives real change. We help turn your data into actionable insights, steering your business towards net-positive operations and maximising global impact.
By integrating PFT powered by ELEKS Dakar into the COVERE² approach, we offer significantly improved accuracy of location-based Scope 2 carbon accounting to companies, fulfilling the requirements mandated by the Corporate Sustainability Reporting Directive (CSRD) and anticipated stricter regulations.
Optimising energy management: the role of Power Flow Tracing
Beyond carbon accounting, there are numerous applications of Power Flow Tracing in sustainable and optimised energy management. PFT is crucial in energy market operations by ensuring fair cost allocation for transmission services. Mapping power flows from generation to consumption allows utilities to distribute transmission costs based on actual usage, reducing inefficiencies and ensuring equitable pricing. Similarly, in distribution networks, PFT helps pinpoint power losses and allocate them accurately among consumers, improving accountability and cost distribution.
Grid congestion remains a key challenge in electricity transmission, and PFT provides a powerful tool for identifying bottlenecks and optimising transmission line usage. It offers deeper insights into how power is generated, transmitted, and consumed, enabling grid operators to enhance system performance and reliability. As the share of renewable energy continues to grow, PFT also supports the seamless integration of renewables by tracking their contribution to electricity consumption, helping operators manage supply fluctuations effectively.
Additionally, PFT strengthens energy market transparency by providing detailed insights into power flows. This ensures fair pricing for generators and consumers, fostering competition and trust in energy markets. By improving visibility into electricity transactions and grid operations, PFT, with energy management software, contributes to a more efficient, reliable, and sustainable energy system.
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