How to measure emissions from Electricity

What counts as Electricity

Electricity activity data is the energy purchased from the grid or generated on site (for example solar PV) and consumed at facilities the organisation owns or has operational control over. It includes electricity used in offices, warehouses, data centres and manufacturing sites, but excludes electricity consumed by tenants in space you lease out. Ownership and control boundaries should follow the same consolidation approach (equity, financial control or operational control) used elsewhere in your inventory.

Electricity sits apart from gas, heat and steam because it is reported under Scope 2 rather than Scope 1, and it carries a choice between location-based and market-based accounting methods under the GHG Protocol Scope 2 Guidance — pick one consistently rather than blending the two in a single total. A common double-counting risk is including transmission and distribution losses inside the Scope 2 figure itself; these upstream losses belong in Scope 3 Category 3, alongside well-to-tank emissions from the fuels used to generate the power. Electricity also differs from heat and steam, which covers thermal energy purchased directly rather than converted from electrical power on site. As a reporting tip, keep on-site generation (solar PV generated, consumed, exported and stored) tracked separately from grid purchases so you can show self-supply and export credits without inflating your consumption total.

What activity data you need

Collect the most specific physical unit available. Unit definitions are in Appendix I — Description of Units.

• kWh
• $ Spend
• £ Spend

Which emission scope it falls under

Electricity activity data typically maps to Scope 2 and Scope 3 Category 3 under the GHG Protocol. Confirm organisational boundary and ownership before reporting.

Common sub-types

• Electricity: Average
• Electricity: UK grid
• Electricity: Solar PV Generated
• Electricity: Solar PV Consumed
• Electricity: Solar PV Exported
• Electricity: Solar PV Stored
• Electricity: Australia: Tasmania
• Electricity: Africa (average)

Common questions

Do I need to report electricity used in a leased office where the landlord pays the bill?

Yes, if you have operational control over the space — for example if you decide on equipment and usage patterns — you should estimate or request consumption data from the landlord or agent, even when you're not the bill payer.

Should I report location-based or market-based electricity emissions?

The GHG Protocol Scope 2 Guidance recommends reporting both where you hold renewable energy contracts or certificates, but at minimum choose one method and apply it consistently across all sites and reporting years.

How do I treat electricity generated by on-site solar panels?

Track generated, consumed, exported and stored solar PV separately — consumption from your own panels is treated differently to grid electricity, while exported electricity is usually kept outside your own consumption total.

What if I only have annual electricity spend, not kWh readings?

Spend-based data can be used as an interim measure, but plan to move to kWh sourced from meters or supplier invoices as soon as possible, since spend estimates are the least precise activity data type.

Do transmission and distribution losses need to be reported separately from Scope 2?

Yes — T&D losses and the well-to-tank emissions behind grid electricity are Scope 3 Category 3, not Scope 2, so keep them as a distinct line in your inventory rather than folding them into your Scope 2 figure.