Use the 'Switching to renewable energy' scenario in ‘Reduce emissions’ to estimate the emission reductions and financial impact of moving part, or all, of your electricity consumption from fossil-based sources to renewable energy. By adjusting different parameters, you can test strategies, compare scenarios, and understand the trade-offs of switching to renewables.
How does the 'Switching to renewable energy' scenario work?
This scenario simulates the carbon and financial impact of replacing part, or all, of your electricity consumption from fossil-based sources with renewable energy. It uses location-based emissions calculated from your actual electricity consumption (uploaded under Purchased electricity) and customisable scenario filters to forecast the transition's climate benefit and financial impact.
The scenario compares two situations:
1. Base Case (Business-as-Usual)
This is what happens if you make no change to your electricity strategy.
Consumption: Your electricity demand grows each year at the rate you set (energy consumption growth %).
Emissions: For each source in your original electricity mix (including any existing renewables), the tool applies its original emission factor (baseline EF). These reflect the emissions per unit of electricity for each source in your current mix.
Costs: All projected consumption is multiplied by your current electricity price per kWh.
2. Action Case (Switch to Renewables)
This shows what happens when you switch a percentage of your electricity to renewable sources.
Consumption: The share you select is shifted away from your old (non-renewable) sources and reassigned to renewable electricity. The percentage shift is applied to all energy sources in the current mix and cannot be specified for one (e.g., if you switch 10%, every non-renewable energy source will be reduced by 10%).
Emissions: Renewable consumption is calculated using the renewable emission factor you enter, while the remaining non-renewable consumption keeps its original baseline EF.
Costs: Renewable consumption is multiplied by the renewable price per kWh, and the remaining non-renewable consumption by the current grid price.
The difference between these two scenarios highlights the emissions avoided and the costs saved or added by making the switch.
'Switching to renewable energy' filters
You can adjust the following scenario filters to reflect your organisation’s assumptions and goals. Once filters have been applied, you can save this view for future use.
Input | Description |
Base year | The reference year for your current electricity consumption and emissions. |
Energy consumption growth rate (%) | Annual increase in electricity demand over time. |
Percentage to switch to renewable | Share of your total non-renewable electricity consumption to replace with renewable energy. |
Renewable emission factor (kgCO₂e/kWh) | Carbon intensity of your renewable source (e.g., 0 for solar PPAs, >0 for grid renewables with some fossil share). |
Current price per kWh (EUR) | What you currently pay for electricity. |
Renewable price per kWh (EUR) | Cost per kWh of the renewable electricity contract. |
CAPEX (EUR) | One-off investment required (e.g., for on-site solar panels, energy contracts, infrastructure). |
Revenue difference (EUR/year) | Any additional revenue generated (e.g., from selling excess renewable electricity). |
OPEX difference (EUR/year) | Changes in operating costs not directly related to electricity price (e.g., lower maintenance from on-site solar). |
WACC (%) | Weighted Average Cost of Capital – used to discount future cash flows. |
Project duration (Years) | Length of time over which the investment is evaluated. |
Include Terminal Value | Whether to include a terminal value at the end of the project. |
Perpetual growth rate (%) | Growth rate used for calculating terminal value if included. |
What insights can I get from 'Switching to renewable energy'?
Once you’ve applied your filters, you’ll see forecasted carbon and financial insights based on these changes. Reviewing both perspectives will help you determine whether switching to renewable energy is the right move and give you the data you need to build a compelling business case for stakeholders.
Each insight explained:
Metric | What it shows | Why it matters |
Electricity emissions in base year | Baseline emissions from current electricity use | Establishes the starting point for measuring reductions |
Consumption from previous electricity mix | Remaining use of the old (non-renewable) source | Reveals ongoing fossil fuel dependence |
New renewable consumption | Portion of demand supplied by renewables | Tracks progress toward decarbonisation |
Total base-case emissions | Emissions if no action is taken | Provides the benchmark “business-as-usual” scenario |
Emissions from previous mix | Emissions linked to the non-renewable share after switching | Highlights footprint still exposed to carbon costs |
Emissions from new renewable | Emissions linked to renewable sources | Validates the climate benefit of your renewable choice |
Total emissions after action | Combined footprint from old + new electricity sources | Shows the outcome of switching |
Difference in emissions | Net change in emissions compared to base case | Quantifies the climate benefit of your action |
Emissions per kWh (before/after/difference) | Carbon intensity of your electricity mix over time | Enables comparisons across sites and years, and shows efficiency gains |
Total base-case costs | Electricity spend before switching | Provides the financial baseline |
Costs from previous mix | Spend on non-renewable electricity after switching | Identifies ongoing fossil fuel costs |
Costs from new renewable | Spend on renewable electricity | Identifies renewable energy costs |
Total costs after action | Combined spend on old + new electricity | Reveals overall spend after switching |
Total difference in costs | Net change in costs vs. base case (including OpEx differences) | Captures the true financial effect of the initiative |
Cashflow (EUR) | Net inflows/outflows each period, including CAPEX, OPEX, and revenue changes | Manages timing of costs and benefits for better planning |
Discounted cashflow (EUR) | Cashflows adjusted for time and risk | Allows like-for-like comparison of projects by present value |
Terminal value (EUR) | Long-term value beyond the modelled period | Captures enduring financial benefits of the project |
NPV (EUR) | Sum of discounted cashflows + terminal value | Determines if the initiative creates or destroys financial value |
Payback (years) | Time until cumulative discounted cashflows turn positive | Assesses how quickly investment recovers initial costs |
Marginal reduction cost (EUR/tCO₂e)
| Cost or saving per tonne of CO₂e reduced | Weighs financial efficiency of emissions reductions |
Disclaimer: The numbers generated by this tool are illustrative only and depend on the parameters you enter. They may differ from real-world results due to variations in energy markets, regional emission factors, and company-specific contexts. Importantly, while switching to renewable energy reduces emissions relative to your baseline, overall emissions in future years may still be higher than in the base year if electricity consumption grows.
This scenario is limited to location-based emissions, where the calculation method is actual electricity consumption.
Please note: Not every decarbonisation initiative will lead to immediate financial savings, and that’s perfectly normal. The goal of this feature is to bring transparency to the climate and financial implications of your actions. By calculating the cost per tonne of CO₂e reduced and projecting long-term impacts, it empowers you to compare alternatives and make informed, strategic decisions. Decarbonisation is not just a cost; it’s an investment in your business's future resilience.