April 1, 2025 | By Sophia Mwema

Companies that prioritize additionality in their renewable energy procurement strategies drive market transformation, accelerate clean energy deployment, and build credibility in their climate commitments.

These companies go beyond simply "buying green." They ensure that every dollar spent on sustainability generates benefits beyond what would have occurred. 

Additionality is a concept that determines whether an initiative leads to "extra good"

— a positive impact that would not have occurred under the business-as-usual (BAU) scenario. 

When organizations invest in renewable energy, they want to ensure their actions contribute to a cleaner grid rather than only taking credit for existing green power.  

A renewable energy project is "additional" if it leads to new clean energy capacity that would not have been developed without market-driven support. If a wind or solar farm would have been built anyway due to existing subsidies or strong policy incentives, then purchasing power from it does not create additional impact.  

On the other hand, supporting a project that wouldn’t have been feasible without external backing ensures real emissions reductions and contributes to the transition toward a greener grid.

Additionality can be evaluated from multiple lenses, each reflecting how an action contributes to sustainability goals.

The table below exemplifies how the various aspects can be considered in renewable energy procurement:

Consequently, additionality is context-dependent because it is evaluated against the business-as-usual scenario (i.e. the status quo).

It varies across time and location, making it a case-by-case evaluation.  

Nevertheless, renewable energy buyers must thoroughly evaluate whether their purchases advance the clean energy transition or simply ride on existing progress. 

So, is any particular project additional?  

Based on the highly contextual nature, the answer to this question rather often is: DEPENDS. 

Assessing project-specific additionality claims is vital.

Buyers can achieve this by seeking third-party verification, such as Green-e or EKOenergy eco-label, to validate additionality claims.  

In the interest of efficiency, GO2 Markets helps our clients understand the different contexts of renewable energy markets through:  

• Regulatory review of whether the project is required by law or exceeds existing policy mandates. 

• Financial assessment of whether the project needs external support, such as corporate procurement agreements or subsidies, to be viable. 

• Market assessment of whether similar projects are already widespread and barriers to transition such as high costs, policy gaps, or technological hurdles that could prevent the project from taking off without market support. 

Ultimately, we guide informed decision-making with baseline analysis needed to compare “what would happen without the project” to “what happens with it.” 

Some energy markets provide predefined frameworks to simplify additionality assessments, making the procurement process more transparent. Consider standardized approaches for these regions. 

Contact our team to learn how we can support you on your journey. We guide our clients in developing suitable procurement strategies and securing supply to achieve their environmental goals and comply with reporting requirements.