Issue link: https://resources.tangoanalytics.com/i/1508312
Essentially, residual mix factors are location-based grid average emission factors, but with all REC certificates and other electricity attributes within the market boundary removed, which can result in the residual mix calculation being more greenhouse gas intensive/ "dirtier". For companies without any contractual instruments for any of their buildings or operations, the residual mix should be used as an emissions factor for the market-based calculation. Whatever consumption is left over after contractual energy consumption is accounted for (after you apply all of your renewable-specific emissions factors to their corresponding MWh of usage) will need to be multiplied by the residual mix, showing the dirtier side of the grid. This is why, in scope II emissions market-based calculations, organizations that do not have contractual agreements will show higher emissions in their market-based calculations. The residual mix for a state in our country, let's take a look at the US, would be the country's generation mix (the grid average factor) minus the sold attributes (for example RECs) and other unclaimed attributes from other regions in the market boundary. If residual mix factors are not available for a region, then standard grid-average factors should be used. RESIDUAL MIX Green-e Residual Mix Factors: As defined by the greenhouse gas protocol, is the mix of energy generation resources and associated attributes such as GHG emissions - in a defined geographic boundary left over after contractual instruments have been claimed/retired/or canceled. In the US, we use the Green-e residual mix and due to residual mix factors being a newer concept, published factors do not cover all regions at the moment. They factor out all green-e-certified sales of renewable energy, and they publish updated editions of these mixes every spring. Sustainability & Energy Management Simplified