Explainers

How to read a green power claim

DRAFT — pending founder review

Every Nordic datacenter says it runs on renewable power. The claim can mean five different things, and the difference matters if your board, your regulator, or your customers will ever audit it.

The ladder, strongest to weakest

  1. Direct supply / behind-the-meter. The facility is physically wired to a specific plant (hydro, geothermal). Rare, strongest, verifiable at the substation.
  2. Physical PPA. A long-term contract with a named generator delivering into the same grid area. Verify: counterparty, volume, tenor.
  3. Virtual PPA. A financial contract; the electrons come from the local grid mix. Better than certificates alone — but ask which grid.
  4. Certificates (Guarantees of Origin / RECs). The facility buys paper matching its consumption. In the Nordics this is cheap and nearly universal — which is exactly why it proves little. Norwegian GOs are largely exported; the physical Nordic grid is renewable anyway.
  5. “Located in a renewable-heavy grid.” True for the whole Nordic region; not a claim about the facility at all.

Three questions that cut through

Why the Nordics still win

Even at rung 4 or 5, a Nordic facility usually beats a continental one at rung 2, because the underlying physical grid is hydro-dominated and the climate does the cooling. The point of this ladder is not cynicism — it is knowing exactly what you are buying, and what you can defend saying about it.