PCS TR 007 Hybrid Systems Methodology_v1.0

Document Control

Document identification

• Document code: PCS-TR-007

• Title: Hybrid Systems Methodology

• Scope: Defines eligibility conditions, boundary and metering requirements, baseline determination rules, project emissions accounting, leakage treatment, and calculation procedures for PCS projects where electricity delivery is produced by an integrated hybrid system (e.g., combinations of renewable generation, energy storage, and/or auxiliary fossil generation) and emission reductions are claimed through displacement of electricity generation.

Version history and change log

Table DC-1. Revision history

v1.0	TBD	Draft	Release for public consultation	PCS	TBD

Superseded versions

No superseded versions for v1.0.

Governance note on versioning and archiving

Only the latest approved version of this Methodology shall be used. Superseded versions shall be archived and retained for traceability and audit purposes. Printed or downloaded copies are uncontrolled; stakeholders must refer to the PCS-published version as the authoritative current version.

Chapter 1 - Purpose

1.1 Purpose

This methodology establishes activity-specific requirements for quantifying emission reductions from hybrid electricity systems under the Planetary Carbon Standard (PCS). It defines the conditions under which electricity delivered from an integrated hybrid system may be credited and specifies the requirements for conservative accounting where multiple generation sources and storage are present.

1.2 Intended use

This methodology shall be applied to projects seeking PCS issuance for measurable and verifiable displacement of electricity generation that would otherwise occur in the absence of the project activity, where the electricity service is delivered by a hybrid system and where attribution of delivered electricity to credited components is required.

The methodology shall be implemented as written and supported by auditable records sufficient for validation and verification.

1.3 Relationship to other PCS documents

This methodology shall be applied together with applicable PCS standards, any PCS methodological tools referenced by this methodology, and the approved PCS templates and forms used for project submission and monitoring/reporting. In the event of inconsistency, higher-order PCS documents prevail.

1.4 Binding nature

Requirements expressed using “shall” are mandatory. Where this methodology references a methodological tool, that tool shall be applied as specified. PCS templates and forms required for submissions shall be used without substitution unless an explicit exception is granted through the PCS deviation process.

1.5 Version control and applicability

This methodology is subject to controlled versioning. The applicable version is the version in force at the time of project submission unless transition provisions specify otherwise. Revisions do not apply until they enter into force under PCS governance procedures.

Chapter 2 - Scope and Applicability

2.1 Scope

This methodology applies to integrated hybrid electricity systems that deliver electricity to a defined electricity system (grid-connected export and/or defined captive loads) and where the delivered electricity arises from a combination of two or more of the following component types:

1. Renewable electricity generation (e.g., solar, wind, hydro, geothermal).

2. Energy storage (e.g., batteries or other storage technologies) that charge from one or more electricity sources and discharge to a delivery point.

3. Auxiliary generation that may include fossil fuel-based generation used for reliability, firming, or backup.

Projects are within scope only where the project can demonstrate complete, conservative, and verifiable accounting of net electricity delivered and all project emissions associated with the delivered electricity, including emissions from any fossil component supplying the credited delivery.

2.2 Eligible project configurations

Hybrid systems are eligible only where the hybrid configuration is defined, metered, and auditable such that delivered electricity can be allocated conservatively for baseline displacement and project emissions accounting.

Table 2-1. Eligible hybrid configurations (non-exhaustive)

Configuration	Eligible under this methodology	Core condition
Renewable generation + storage (grid export and/or captive)	Yes	Charging source(s) and discharge to delivery point shall be metered or otherwise auditable; no double counting of energy through storage.
Renewable generation + storage + auxiliary fossil generator (firming/backup)	Yes	Fossil electricity supplying the credited delivery shall be included as project emissions; attribution rules shall prevent claiming renewable credit for fossil-supplied delivery.
Multiple renewable generators (e.g., wind + solar) with shared interconnection	Yes	Delivered electricity shall be metered; allocation across generators is only required where different eligibility/boundary conditions apply.
Storage charged partly from grid and discharged for export (“battery arbitrage”)	Conditional	Eligible only where the project can demonstrate that credited discharge corresponds to eligible charging electricity and that baseline and project emissions are treated conservatively; otherwise not applicable.
Hybrid systems where attribution cannot be separated (commingled behind-the-meter without auditable sub-metering)	No	Not applicable due to inability to prevent over-crediting.

2.3 Applicable delivery configurations

This methodology recognises the following delivery configurations, subject to metering and attribution requirements.

Table 2-2. Applicability by delivery configuration

Delivery configuration	Applicability under this methodology	Minimum conditions that shall be met
Grid-connected export	Applicable	Net electricity exported shall be metered at the defined point of interconnection; charging and discharging for storage shall be auditable where storage is present.
Captive/on-site displacement	Applicable	Point of delivery to the captive load shall be metered; baseline supply shall be identified and evidenced; allocation rules shall prevent double counting where multiple sources supply the load.
Mixed grid export and captive supply	Applicable	Electricity quantities shall be separately accounted by route; allocation shall be auditable; no double counting across routes.

2.4 Exclusions and non-applicable cases

This methodology shall not be applied to:

1. Systems where net electricity delivered for crediting cannot be reliably metered and audited.

2. Systems where storage charging sources cannot be determined in a verifiable manner and where this uncertainty could increase credited reductions.

3. Systems where fossil generation contributes to delivered electricity but emissions cannot be quantified conservatively for the credited delivery.

4. Systems seeking crediting primarily for ancillary services, capacity, or reliability benefits without a PCS-approved quantification framework for such benefits.

5. Systems where baseline identification depends on discretionary dispatch claims that cannot be evidenced.

2.5 Applicability conditions

A project shall be applicable under this methodology only where all conditions below are satisfied.

2.5.1 Demonstrable displacement

The project shall demonstrate that electricity delivered from the hybrid system displaces electricity generation that would otherwise occur, consistent with the baseline approach in Chapter 5.

2.5.2 Auditable attribution and metering integrity

Where multiple sources contribute to delivered electricity, the project shall establish an auditable attribution approach supported by metering and records. Where attribution cannot be demonstrated, the methodology shall be deemed not applicable.

2.5.3 Fossil contribution integrity

Where fossil generation is present and can supply the credited delivery, emissions from fossil-supplied electricity shall be included as project emissions. The project shall not claim emission reductions as if all delivered electricity is renewable where fossil contribution exists.

2.5.4 Storage integrity

Where storage is present, the project shall prevent double counting of electricity by ensuring that electricity charged into storage and later discharged is credited only once and that charging source(s) are treated consistently with baseline and project emissions rules.

2.6 Geographic applicability

This methodology is globally applicable, subject to the availability of credible data required to implement baseline determination, metering and attribution requirements, and conservative accounting of fossil and other project emissions.

Chapter 3 - Conditions for Eligibility

3.1 General eligibility requirement

A project shall be eligible under this methodology only where it is demonstrably within scope, meets all applicability conditions, and can be validated and verified using auditable records. A project shall not proceed to registration where the methodology is not fully applicable or where required evidence cannot be produced in a verifiable form.

3.2 Project activity eligibility

The project activity shall consist of installation and operation of an integrated hybrid system that delivers electricity to a defined delivery point and seeks crediting for measurable and verifiable displacement of electricity generation.

The project shall clearly identify all system components that can affect delivered electricity and emissions, including all generation sources, storage components, auxiliary generators, converters/inverters, and operational controls.

Where the project includes multiple phases or expansions, the project proponent shall demonstrate separability of the credited activity and shall prevent double counting across phases.

3.3 Legal compliance and permits

The project shall comply with all applicable laws and regulations. The project proponent shall demonstrate that all material permits and approvals required for construction, generation, storage operation, fuel use (where applicable), grid interconnection, and operation have been obtained and are valid at the time of registration.

3.4 Right to claim emission reductions and avoidance of double counting

The project proponent shall demonstrate legal authority and contractual rights to claim the emission reductions resulting from the project activity. The project shall not claim emission reductions that are already claimed or used under another program, instrument, or mechanism unless an explicit and verifiable non-overlap arrangement exists and is consistent with PCS requirements on double counting.

Where power purchase agreements, wheeling arrangements, shared interconnections, joint ventures, or public-private ownership exist, the project proponent shall document attribute ownership and demonstrate that mitigation outcomes are not claimed elsewhere.

3.5 Start date and prior consideration

The project shall define a clear project start date. Where required by PCS rules, the project proponent shall demonstrate prior consideration of carbon finance through contemporaneous evidence. Absence of credible contemporaneous evidence, where required, shall render the project ineligible.

3.6 Baseline eligibility and boundary consistency

The project shall identify a credible baseline scenario consistent with this methodology. The baseline scenario shall not be defined in a manner that inflates emission reductions. Project and baseline boundaries shall be consistent for all emission sources relevant to quantification. Any boundary difference shall be explicitly justified and shall not increase credited emission reductions.

3.7 Additionality eligibility

The project shall demonstrate additionality in accordance with PCS requirements and this methodology. The project shall not be eligible where the project activity is legally mandated or otherwise non-additional under PCS rules.

3.8 Metering and attribution eligibility requirement

Eligibility under this methodology is conditional on auditable metering and attribution capable of separating and accounting for electricity flows and emissions conservatively.

1. Net electricity delivered for crediting shall be measured at defined point(s) of delivery using revenue-grade or equivalent meters.

2. Where storage is present, charging energy and discharging energy shall be metered or otherwise auditable such that charging sources can be determined for accounting purposes.

3. Where multiple sources can supply the delivery point (including fossil generators), the project shall have metering and control logic sufficient to quantify the fossil-supplied share of delivered electricity or otherwise account conservatively.

4. If commingling behind-the-meter prevents attribution and could increase credited reductions, the project shall be deemed not eligible under this methodology.

3.9 Fossil contribution eligibility requirement

Where any fossil generation unit exists within the hybrid system boundary and can supply electricity to the credited delivery point, the project shall meet the following conditions:

1. Fossil electricity supplying credited delivery shall be quantified and treated as project emissions in accordance with this methodology.

2. The project shall not treat fossil electricity as eligible “renewable” supply for crediting.

3. If the project proponent cannot demonstrate, with auditable data and controls, the quantity of fossil electricity supplying the credited delivery, the project shall apply conservative treatment up to and including deeming the project not eligible for issuance for the affected periods.

3.10 Storage charging eligibility requirement

Where storage is present, eligibility is conditional on credible and conservative treatment of charging sources.

1. The project proponent shall identify all possible charging sources, including renewable generators, grid imports, and fossil generators.

2. The project shall demonstrate, using metered data and records, the electricity charged into storage by source or apply conservative allocation rules that do not increase credited reductions.

3. Where storage can charge from the grid and discharge to the grid, the project shall not claim emission reductions for discharged electricity as if it were zero-emission unless it demonstrates eligible charging and prevents double counting.

3.11 Treatment of material changes

The project proponent shall disclose any material change to hybrid configuration, storage operation strategy, dispatch logic, charging sources, delivery configuration, ownership/control, metering arrangement, or operational control that may affect applicability, baseline, additionality, monitoring, or quantification.

Material changes shall be addressed through PCS post-registration change procedures. Where a material change affects attribution or fossil contribution, the project shall not claim credits for affected periods until the change is approved and implemented in monitoring and quantification.

3.12 Specific exclusion triggers

A project shall be deemed not eligible under this methodology where any of the following apply:

1. Net electricity delivery cannot be demonstrated through auditable metering and records.

2. Storage charging sources cannot be determined or conservatively allocated, and this uncertainty could increase credited reductions.

3. Fossil contribution exists and cannot be quantified and deducted conservatively.d) Baseline scenario cannot be credibly established or relies on assumptions that materially increase credited reductions without evidence.

4. Double counting risk exists due to unclear ownership, overlapping programs, or conflicting claims.

3.13 Eligibility evidence requirements

Eligibility shall be supported by documentary evidence sufficient for validation and verification. Evidence shall be traceable, dated where relevant, and auditable.

Table 3-1. Minimum eligibility evidence (non-exhaustive)

Hybrid configuration	System description, single-line diagram, equipment list, control logic overview, commissioning records
Permits and approvals	Construction permits, generation licenses, storage permits (if applicable), fuel permits (if applicable), environmental approvals
Interconnection and delivery	Interconnection agreements, export/delivery meters, wheeling documents where applicable
Right to claim / non-overlap	Contracts, attribute ownership clauses, declarations preventing double counting
Start date / prior consideration (if required)	Investment decision documents, financing documents, contemporaneous communications
Baseline and boundary	Baseline scenario description, boundary diagrams, justification of inclusions/exclusions
Additionality	Regulatory analysis, investment/barrier analysis, common practice assessment
Metering and attribution	Meter register, calibration plan/records, data management procedures, storage charge/discharge metering evidence, dispatch/control documentation
Fossil contribution	Fuel and generation records (if applicable), metering evidence, operational logs showing fossil dispatch events

Chapter 4 - Project Boundary

4.1 Boundary principle

The project boundary shall include all electricity flows and emission sources necessary to quantify, in a complete and conservative manner, the net emission reductions attributable to the hybrid system. The boundary shall be defined such that baseline and project scenarios are comparable and exclusions do not result in over-crediting.

The project proponent shall describe the boundary using a system layout and a single-line electrical diagram that identify all generation sources, storage components, converters/inverters, auxiliary generators, points of import/export, internal distribution, metering points, and the defined point(s) of delivery used for quantification.

4.2 Boundary components

The project boundary shall include, at minimum:

1. All electricity generation units within the hybrid system that can supply the delivery point, including renewable and fossil units.

2. Energy storage system(s), including charging equipment, inverters, and any associated losses relevant to net delivered electricity.

3. All electrical infrastructure up to the point(s) of delivery used for crediting, including transformers and switchgear where they affect measured delivery.

4. All points of electricity import that can supply charging or loads, including grid import and auxiliary supply.

5. All emission sources within the boundary that are attributable to electricity delivered for which credits are claimed, including fossil fuel combustion.

Where the hybrid system includes multiple operational modes or configurations, the boundary shall cover all modes that can affect electricity delivered or emissions.

4.3 Greenhouse gases included

Baseline emissions are primarily associated with CO₂ and may include CH₄ and N₂O where the baseline emission factor includes those gases.

Project emissions shall include CO₂, CH₄, and N₂O emissions from fossil fuel combustion within the hybrid boundary that supplies electricity to the credited delivery route(s), and any other project emission sources required by PCS for the relevant technologies.

4.4 Electricity delivery definition for hybrid systems

The crediting quantity shall be net electricity delivered at the defined point(s) of delivery and shall be measured using revenue-grade or equivalent meters.

Where storage is present, electricity delivered may originate from direct generation at the time of delivery and/or from storage discharge. The project shall not double count energy by treating both the charging electricity and the discharged electricity as separate delivered quantities. For crediting, only electricity delivered at the defined point(s) of delivery shall be used, subject to the attribution rules in this methodology.

4.5 Storage boundary and losses

Where storage is present, the boundary shall include the storage system and all electricity flows into and out of storage that are necessary to determine:

1. Energy charged into storage by source (where relevant).

2. Energy discharged from storage to the delivery point.

3. Storage losses and auxiliary consumption relevant to net delivery accounting and attribution.

Storage losses shall not be treated as emission reductions. Where attribution depends on charging sources, losses shall be treated conservatively so that claimed emission reductions are not inflated by storage cycling.

4.6 Fossil generation boundary

Where a fossil generator exists within the hybrid system and can supply the credited delivery, the generator and its fuel consumption/emissions shall be included within the project boundary for accounting purposes. The project shall define the measurement approach and metering configuration used to quantify fossil electricity contribution and emissions.

4.7 Boundary by delivery configuration

4.7.1 Grid-connected export

For grid-connected projects, the electricity flow relevant for quantification is the net electricity exported to the grid at the defined point of interconnection or other defined delivery point. The boundary shall include all equipment and electricity flows up to the export meter used for quantification and any imports that can charge storage or support delivery.

4.7.2 Captive/on-site displacement

For captive displacement projects, the electricity flow relevant for quantification is the net electricity delivered to the defined captive system at the defined delivery meter(s). The boundary shall include all equipment and electricity flows up to the delivery meter(s) and any imports or auxiliary generators that can supply the load.

4.7.3 Mixed delivery

Where both grid export and captive supply occur, the project shall define separate delivery routes and metering arrangements such that electricity quantities attributable to each route are clearly determined and not double counted.

4.8 Boundary exclusions

The following are excluded from the boundary under this methodology, unless explicitly required elsewhere in PCS:

1. Upstream lifecycle emissions from manufacturing and construction.

2. Indirect market effects and policy impacts not directly attributable to monitored electricity delivery.

3. Ancillary service impacts unless PCS defines an approved quantification framework.

Exclusions shall be justified and shall not increase credited reductions.

4.9 Boundary table

Table 4-1. Boundary sources and inclusion status (hybrid systems)

Source / sink / flow	Included in baseline scenario	Included in project scenario	Inclusion rationale
Net electricity delivered at point(s) of delivery (grid export and/or captive)	Yes	Yes	Basis for displacement and crediting quantity.
Grid electricity supplying baseline generation/service	Yes	No	Represents displaced baseline supply where applicable.
Renewable generation within hybrid system	No	Yes	Component of project electricity delivery.
Storage charging electricity	Reflected through delivery accounting	Included for attribution where relevant	Needed to prevent double counting and determine charging source where required.
Storage discharging electricity to delivery point	No	Yes	May contribute to delivered electricity; must be accounted without double counting.
Storage losses and auxiliary consumption	Reflected in net delivery and/or attribution	Reflected in net delivery and/or attribution	Prevents inflation of credited delivery.
Fossil generation supplying credited delivery (if any)	No	Yes	Project emissions must be included where fossil contributes to credited delivery.
Fuel consumption for fossil generation	No	Yes	Basis for fossil project emissions quantification.
Upstream lifecycle emissions	No	No	Excluded under this methodology.

4.10 Documentation requirements

The project proponent shall provide boundary documentation sufficient for validation and verification, including:

1. Single-line electrical diagram showing all generators, storage, inverters, imports, exports, and metering points.

2. Meter register identifying primary delivery meters, storage charge/discharge meters, and fossil generator meters where applicable.

3. Description of operating modes and control logic that affect charging, discharging, and fossil dispatch.

4. Evidence that boundary definition is consistent with baseline determination and calculation approach.

Failure to demonstrate an unambiguous and conservative boundary definition and auditable electricity flows shall render the project ineligible for issuance for the affected periods.

Chapter 5 - Baseline Scenario and Baseline Emissions

5.1 Baseline principle

The baseline scenario shall represent the plausible electricity generation that would occur in the absence of the hybrid system project and shall be defined in a transparent, conservative, and verifiable manner. Baseline assumptions shall not be selected or structured to inflate emission reductions.

The baseline scenario shall be consistent with the delivery configuration(s) and boundary in Chapter 4. Baseline and project scenarios shall be comparable. Where storage or fossil components exist, baseline determination shall not be structured to credit energy shifting as if it were energy generation.

5.2 Identification of the baseline scenario

The project proponent shall identify the baseline scenario using the procedure below.

5.2.1 Step 1: Identify the electricity system and delivery route

The project shall identify the electricity system to which project electricity is delivered, distinguishing between grid-connected export, captive/on-site displacement, or mixed delivery. The electricity system definition shall be evidenced through interconnection documentation, wheeling agreements where applicable, and the metering configuration used for quantification.

5.2.2 Step 2: Determine the most plausible baseline electricity supply

The baseline scenario shall be the most plausible source of electricity that would supply the same electricity service without the project activity.

1. For grid-connected export, the baseline scenario shall be electricity supplied by the connected grid/system.

2. For captive/on-site displacement, the baseline scenario shall be electricity supplied by the identified baseline source(s) that would serve the captive system, including existing or planned fossil generation and/or grid imports where those are credible alternatives.

3. For mixed delivery, the baseline scenario shall be identified separately for each delivery route and shall be consistent with route-specific electricity system definitions.

Where the hybrid project’s function includes firming, shifting, or dispatch shaping via storage, the baseline scenario shall not assume that such dispatch shaping represents “additional electricity generation.” The baseline shall be set against the electricity service delivered, not against internal cycling of energy through storage.

5.3 Baseline emission factor approach

Baseline emissions shall be calculated by applying an emission factor to net electricity delivered under each delivery route, subject to the storage and fossil accounting rules in this chapter.

5.3.1 Grid-connected export: grid emission factor

For grid-connected delivery, baseline emissions shall be quantified using a grid emission factor applicable to the defined grid/system and the monitoring period.

The project shall not select an emission factor solely because it increases emission reductions. Where marginal displacement cannot be credibly established, a conservative grid emission factor approach shall be applied.

5.3.2 Captive/on-site displacement: baseline source emission factor

For captive displacement delivery, baseline emissions shall be calculated using an emission factor derived from the baseline electricity source(s). The emission factor shall be based on measured fuel and generation data where available. Where measured data are not available, conservative defaults shall be justified.

If the baseline supply is grid electricity, the grid emission factor approach in Section 5.3.1 shall be applied.

5.3.3 Mixed delivery

For mixed delivery, baseline emissions shall be calculated separately for each route and summed. Electricity quantities shall not be double counted across routes.

5.4 Storage charging source treatment for baseline emissions

Where storage is present, baseline emissions shall be determined with explicit treatment of charging sources to prevent over-crediting.

5.4.1 Storage charged only from on-site eligible renewable generation

Where the project demonstrates, using metering and controls, that storage is charged exclusively from on-site eligible renewable generation, baseline emissions may be calculated using net electricity delivered at the delivery point multiplied by the applicable baseline emission factor, provided that double counting is prevented and storage losses are conservatively treated.

5.4.2 Storage charged partly or wholly from the grid

Where storage charges partly or wholly from the grid, the project proponent shall not claim emission reductions for electricity discharged from storage as if it were zero-emission renewable electricity without explicitly accounting for the emissions associated with the charging electricity.

For such systems, the project shall apply a conservative accounting approach that ensures that any emission reductions claimed arise only from demonstrable net reductions relative to baseline and not from shifting grid electricity through storage.

As a minimum, where the charging source includes grid imports and the discharged electricity is delivered for crediting, the project shall treat the charged grid electricity as carrying baseline-associated emissions in project accounting or shall deduct it through an approved allocation method such that net claimed reductions are not increased by storage cycling.

5.4.3 Storage charged from fossil generation within the hybrid boundary

Where storage charges from fossil generation within the hybrid boundary, emissions associated with that fossil generation shall be included as project emissions. Electricity discharged from storage that originated from fossil charging shall not be treated as eligible renewable delivery for the purposes of emission reductions.

5.4.4 Inability to demonstrate charging sources

Where the project cannot demonstrate charging sources with auditable data, the project shall apply conservative treatment that does not increase credited reductions, up to and including deeming the project ineligible for issuance for the affected periods.

5.5 Baseline emissions calculation

Baseline emissions for monitoring period shall be calculated as follows.

Table 5-1. Baseline emissions equations

Baseline type	Baseline emissions for monitoring period
Grid-connected export
Captive displacement
Mixed delivery

Where:

is baseline emissions in monitoring period (tCO₂e).

is net electricity delivered at the defined delivery point(s) in monitoring period (MWh).

is net electricity delivered via route in monitoring period (MWh).

, , are baseline emission factors (tCO₂e/MWh), as applicable.

5.6 Baseline validity and updating

Baseline parameters and emission factors shall remain valid only where they continue to represent the defined electricity system and baseline supply. The project proponent shall update baseline emission factors where required by PCS rules, where the underlying data source updates emission factors, or where material changes occur that affect baseline representativeness.

Baseline representativeness shall be assessed at each verification. If continued use of an existing emission factor would materially overstate baseline emissions, an updated factor shall be applied for the relevant monitoring periods.

5.7 Documentation requirements

The project proponent shall document baseline scenario identification and emission factor selection with sufficient evidence for validation and verification, including:

1. Electricity system definition and delivery configuration(s).

2. Grid identification and interconnection evidence, or captive baseline supply definition and evidence.

3. Data sources used for emission factors, including version and applicability.

4. Storage charging source identification, metering configuration, and allocation rules applied where storage is present.

5. Any baseline update applied and the basis for the update.

Chapter 6 - Additionality

6.1 Requirement

The project activity shall be additional. The project proponent shall demonstrate that, in the absence of carbon credit revenues, the hybrid system would not have occurred as implemented, would not have been implemented at the same scale and timing, or would not have delivered the credited electricity service in the same manner.

Additionality shall be assessed at validation. Where PCS requires reassessment at renewal or where material changes occur that affect the additionality basis, additionality shall be reassessed in accordance with PCS procedures.

6.2 Regulatory surplus test

The project shall not be eligible where the project activity or the achieved emission reductions are required by law, regulation, permit condition, legally binding renewable obligations, mandated utility procurement, mandated storage procurement, enforceable grid codes requiring specific hybrid configurations, or enforceable compliance targets applicable to the project proponent or the project facility.

The project proponent shall identify all applicable regulations and policy instruments relevant to each hybrid component, including renewable generation, storage installation and operation, auxiliary generation, and electricity delivery. Where a component is mandated, emission reductions attributable to that mandated component shall not be claimed as additional.

6.3 Investment analysis or barrier analysis

The project proponent shall demonstrate additionality using either an investment analysis or a barrier analysis. The selected approach shall be justified and supported by auditable evidence.

6.3.1 Investment analysis

Where investment analysis is applied, the project proponent shall demonstrate that the hybrid system is not financially attractive without carbon revenues, or that carbon revenues are decisive to meet an investment threshold required by decision-makers.

The analysis shall reflect information available at the time of the investment decision and be based on project-specific data. Key assumptions shall include capex and opex of each component, financing terms, revenue streams (energy, capacity, ancillary services where applicable), and operational strategy. Sensitivity analysis shall be conducted on material parameters and conservative assumptions shall be used.

Where the project earns revenues from ancillary services, capacity payments, firming contracts, or other non-energy revenues, these shall be included in the analysis. The project shall not omit material revenue streams to create an artificial additionality case.

6.3.2 Barrier analysis

Where barrier analysis is applied, the project proponent shall demonstrate the presence of at least one credible barrier that would prevent implementation of the hybrid system in the absence of carbon revenues and that the project activity overcomes the identified barrier(s).

Barrier claims may include access to finance, high cost of capital, technology integration constraints, grid interconnection constraints, reliability requirements that increase costs, or institutional barriers. Claims shall be project-specific, evidenced, and causally linked to implementation decisions. Generic sector-wide barrier claims without evidence shall not be accepted.

6.4 Common practice assessment

The project proponent shall assess whether the hybrid configuration is common practice in the applicable context, considering relevant geographic, market, and regulatory boundaries.

If similar hybrid systems are common practice, the project shall not be eligible unless the project proponent demonstrates that the project differs materially in a way that affects likelihood of implementation and that the difference is not the result of regulatory requirements.

6.5 Storage-specific additionality integrity condition

Adding storage does not automatically establish additionality. The project proponent shall demonstrate that storage is not required by regulation or contract and that storage contributes to the project’s ability to deliver the credited electricity service in a manner that is not business-as-usual without carbon revenues.

Where storage is installed primarily for arbitrage, capacity, or ancillary services, the project proponent shall demonstrate additionality considering those revenue streams and shall not rely on carbon revenue claims that ignore such revenues.

6.6 Fossil component integrity condition

Where a fossil generator is included in the hybrid system, additionality shall be assessed for the project as a whole and shall not be claimed on the basis of renewable components alone while ignoring the role and emissions of the fossil component.

Carbon crediting under this methodology is based on net emission reductions in accordance with Chapter 9, which deducts fossil-supplied emissions as project emissions.

6.7 Prior consideration and timing integrity

Where required by PCS rules, the project proponent shall demonstrate prior consideration of carbon finance through contemporaneous evidence. Absence of credible contemporaneous evidence, where required, shall render the project ineligible.

Where the project is implemented, operational, or financially closed prior to entering PCS, the project proponent shall demonstrate eligibility under PCS rules applicable to start date and prior consideration.

6.8 Additionality failure conditions

A project shall be deemed not additional where any of the following apply:

1. The project is implemented to comply with a binding legal requirement or enforceable obligation.

2. The project is demonstrably financially attractive without carbon revenues and the project proponent cannot show carbon revenue is decisive.

3. Claimed barriers are not project-specific or are not supported by verifiable evidence.

4. The hybrid configuration is common practice and no credible differentiation is demonstrated.

5. Timing and prior consideration requirements applicable under PCS are not met.

6.9 Documentation requirements

The project proponent shall provide documentation sufficient for validation, including the regulatory surplus assessment, the selected additionality demonstration method (investment or barrier), common practice evidence and analysis, and any prior consideration evidence required by PCS rules. Documentation shall be traceable, dated where relevant, and auditable.

Chapter 7 - Project Emissions and/or Removals

7.1 Principle

Project emissions shall include all GHG emissions within the project boundary that are attributable to the project scenario and that are relevant to the quantification of net emission reductions under this methodology.

Hybrid systems may have project emissions arising from fossil fuel combustion, and may also involve electricity imports (including grid charging of storage) that can affect net emission reductions. Where such imports or fossil components exist and can contribute to credited delivery, they shall be treated in a manner that prevents over-crediting.

This methodology does not quantify removals. No removals shall be claimed under PCS-TR-007.

7.2 Sources of project emissions

The project proponent shall assess the presence of the project emission sources below and shall include them where they occur.

7.2.1 Fossil fuel combustion within the hybrid boundary

Where fossil fuel-based generation supplies electricity to the credited delivery point(s), emissions from such generation shall be included as project emissions.

7.2.2 Fossil fuel combustion for auxiliary purposes integral to delivery

Where fossil fuels are combusted within the project boundary for purposes integral to electricity delivery and cannot be excluded without risk of over-crediting, emissions shall be included as project emissions.

7.2.3 Grid-charged storage electricity contributing to credited delivery

Where storage is charged from the grid and later discharged to the delivery point(s) for which credits are claimed, the project shall account for the emissions associated with the charged grid electricity in a conservative manner.

Grid-charged electricity discharged for crediting shall not be treated as zero-emission renewable electricity. The project proponent shall either:

1. Quantify and include the emissions associated with the grid-charged electricity as project emissions, or

2. Apply a conservative allocation approach approved under this methodology that ensures that emission reductions are not increased by storage cycling of grid electricity.

If the project cannot determine the quantity of grid-charged electricity that contributes to credited delivery with auditable data, the project shall apply conservative treatment up to and including zero issuance for the affected period.

7.3 Quantification of fossil combustion emissions

Where fossil generation or combustion is included, project emissions shall be quantified using measured fuel consumption and appropriate emission factors, or measured electricity generated by the fossil unit and a unit emission factor. The selected approach shall be justified and conservative.

Table 7-1. Fossil emissions equations (within boundary)

Case	Project emissions component for monitoring period
Fuel-based
Electricity-based

7.4 Quantification of emissions associated with grid-charged storage (where applicable)

Where storage is charged from the grid and discharged to the credited delivery point(s), the project shall quantify the electricity charged from the grid that is attributable to credited delivery and shall account for associated emissions conservatively.

The project shall use metered electricity import data and storage charge/discharge data to determine the quantity of grid-sourced charging energy attributable to discharged electricity delivered for crediting.

Table 7-2. Grid-charged storage emissions (generic equation)

Parameter	Equation
Emissions associated with grid-charged energy used for credited delivery

Where:

is the quantity of grid-charged electricity attributable to credited delivery in monitoring period (MWh), determined using auditable metering and conservative allocation.

is an emission factor applicable to the grid electricity used for charging in monitoring period (tCO₂e/MWh). The factor selection shall be conservative and consistent with PCS rules.

Where the project cannot credibly allocate grid-charged energy to credited delivery, conservative allocation shall be applied such that is not understated.

7.5 Total project emissions

Total project emissions for monitoring period shall be calculated as:

Where includes any other included project emission sources required by PCS for the project configuration.

7.6 Excluded project emissions

Upstream lifecycle emissions from manufacturing, construction, and decommissioning are excluded from quantification under this methodology.

7.7 Documentation requirements

The project proponent shall document the assessment of project emission sources, the inclusion or exclusion rationale, the monitoring and calculation approach used, the data sources and emission factors applied, and sufficient evidence to allow validation and verification.

For hybrid systems with storage, documentation shall include the metering configuration used to determine charging sources, the allocation method used to attribute charging energy to credited delivery, and records demonstrating that grid-charged energy is not claimed as zero-emission renewable delivery.

Chapter 8 - Leakage

8.1 Principle

Leakage is an increase in GHG emissions that occurs outside the project boundary and is attributable to the implementation of the project activity. Leakage shall be assessed and included in the net emission reduction calculation where it is measurable, attributable, and material.

Leakage shall not be used as a discretionary adjustment. Where leakage is included, the approach shall be transparent, conservative, and supported by evidence.

8.2 Leakage assessment for hybrid systems

Hybrid systems generally displace electricity generation rather than shift emitting activities to another location. However, leakage may occur where baseline generators are relocated, where fuel use changes outside the boundary due to the project, or where the hybrid configuration causes a demonstrable shift in emitting activities outside the boundary that is attributable to the project.

The project proponent shall assess leakage based on delivery configuration and project context. Where a leakage source is plausible, the project proponent shall document the assessment and provide evidence sufficient for validation and verification.

8.3 Potential leakage sources and treatment

8.3.1 Captive baseline generator relocation or increased operation

For captive displacement configurations, leakage may occur if the baseline fossil generator is relocated and operated elsewhere, or if its operation increases outside the project boundary as a consequence of the project activity. Where the project proponent has ownership, control, or contractual influence over the baseline generator, the project proponent shall assess generator disposition and subsequent operation.

Where such leakage is demonstrated and is material, leakage emissions shall be quantified conservatively using available operational data or conservative defaults.

8.3.2 Fuel supply shifting attributable to project operation

Where the project causes a demonstrable shift in fuel consumption or fuel supply outside the project boundary that increases emissions and is attributable to the project, such leakage shall be assessed. Generic claims without evidence shall not be accepted.

8.3.3 System boundary manipulation

The electricity system definition established for baseline determination shall be maintained consistently. Changes to system definition shall not be used to increase baseline emissions. If electricity is delivered to a different system than defined, or system boundaries are redefined in a manner that increases credited reductions without justification, the project shall update the baseline approach and shall not claim increased reductions arising from such redefinition.

8.3.4 Prohibited treatment of non-attributable effects

The project shall not claim “negative leakage” or additional benefits through asserted improvements in grid operation, reliability, or co-benefits unless a PCS-approved methodology explicitly defines quantification and attribution rules for such effects. Claims that cannot be traced to monitored electricity delivery and the defined baseline shall not be used to adjust leakage.

8.4 Quantification of leakage

Leakage emissions shall be quantified only where attributable, measurable, and material. Where quantified, leakage emissions for monitoring period shall be calculated and deducted from emission reductions.

Table 8-1. Leakage accounting

Requirement element	Requirement
Identification	Leakage sources shall be identified based on project context and delivery configuration.
Materiality	Materiality shall be justified with evidence and conservative reasoning.
Quantification	Measured data shall be used where feasible; otherwise conservative defaults shall be justified.
Deduction	Quantified leakage emissions shall be deducted in the net emission reduction calculation.

Where leakage cannot be quantified due to lack of data, the project proponent shall apply a conservative approach that does not result in over-crediting, including application of conservative deductions where PCS permits such treatment.

8.5 Documentation requirements

The project proponent shall document leakage assessment, inclusion or exclusion rationale, data sources, assumptions, materiality justification, and any calculations performed. Evidence shall be sufficient to allow validation and verification of leakage conclusions.

Chapter 9 - Net GHG Impact and Crediting

9.1 Principle

Emission reductions credited under this methodology shall be calculated for each monitoring period as the net difference between baseline emissions and the sum of project emissions and leakage emissions. Crediting shall be based on monitored and verifiable data. No crediting shall be issued for reductions that are not supported by auditable records.

9.2 Net emission reductions

Net emission reductions for monitoring period shall be calculated as follows.

Table 9-1. Net emission reduction equation

Parameter	Equation
Net emission reductions

Where:

is emission reductions in monitoring period (tCO₂e).

is baseline emissions in monitoring period (tCO₂e), determined in Chapter 5.

is project emissions in monitoring period (tCO₂e), determined in Chapter 7 and including fossil emissions and emissions associated with grid-charged storage where applicable.

is leakage emissions in monitoring period (tCO₂e), determined in Chapter 8.

Emission reductions shall not be claimed for periods in which . Where is negative, it shall be reported and shall not be carried forward to offset positive emission reductions in other monitoring periods.

9.3 Creditable emission reductions and issuance

Creditable emission reductions shall equal verified emission reductions after application of any PCS-required adjustments, conservativeness provisions, or other deductions applicable to the project, including those arising from uncertainty treatment, monitoring non-conformities, or approved deviations.

Issuance shall occur only after successful verification and PCS review in accordance with PCS procedures. The project proponent shall ensure that all parameters and calculations used for the monitoring period are traceable to source records and can be independently reproduced.

9.4 Rounding and units

All electricity quantities shall be expressed in MWh. Emissions and emission reductions shall be expressed in tCO₂e.

Rounding shall be applied conservatively. Where rounding is required, values shall be rounded down to the nearest whole unit at the stage of credit issuance. Intermediate calculations shall retain sufficient decimal precision to avoid systematic inflation of results.

9.5 Crediting period and renewal

The crediting period length, renewal rules, and any limits on total crediting duration shall be applied in accordance with PCS requirements. The project proponent shall apply baseline update and additionality reassessment requirements applicable at renewal.

9.6 Aggregation and multiple delivery routes

Where the project has multiple delivery routes, emission reductions shall be calculated separately per route where different baseline emission factors apply, and then summed to derive total emission reductions for the monitoring period. Electricity quantities shall not be double counted between routes.

9.7 Documentation requirements

For each monitoring period, the project proponent shall provide a complete calculation record that includes baseline emissions, project emissions (including fossil and grid-charging emissions where applicable), leakage emissions, net emission reductions, and any deductions or adjustments applied. Records shall be sufficient to support validation and verification.

Chapter 10 - Monitoring Requirements

10.1 Objective

The objective of monitoring under this methodology is to produce complete, accurate, and auditable data sufficient to quantify baseline emissions, project emissions, leakage (where applicable), and net emission reductions for each monitoring period. Monitoring shall enable independent verification of reported results.

Monitoring shall be implemented as a system, including metering hardware, data collection and storage procedures, QA/QC controls, calibration and maintenance arrangements, reconciliation checks, and record retention practices.

10.2 Monitoring period

The project proponent shall define monitoring periods in accordance with PCS requirements. For each monitoring period, the project shall compile monitored data and supporting evidence that cover the full period without gaps. Where data gaps occur, the project proponent shall apply conservative gap-filling rules as set out in this chapter.

10.3 Parameters to be monitored

The project proponent shall monitor the parameters in Table 10-1, as applicable to the hybrid configuration and delivery configuration. Where a parameter is not applicable, the project proponent shall justify non-applicability and demonstrate that exclusion does not result in over-crediting.

Table 10-1. Monitoring parameters (minimum)

Parameter	Description	Unit	Applicable to	Monitoring frequency	Data source / method	QA/QC requirements
(EG_{DEL,t})	Net electricity delivered at the defined delivery point(s) for monitoring period (t)	MWh	All projects	Continuous; aggregated per monitoring period	Revenue-grade/equivalent delivery meter(s); settlement data where available	Calibration; tamper controls; audit trail
(EG_{DEL,t,r})	Net electricity delivered per delivery route (r)	MWh	Multi-route projects	Continuous; aggregated per period	Route-specific delivery meters or auditable allocation	No double counting; reconciliation
(E^{IMP}_{t})	Total electricity imported into the hybrid boundary from the grid/other external sources	MWh	Projects with imports	Continuous; aggregated per period	Import meter(s) / settlement data	Calibration; reconciliation vs billing
(E^{CH}_{t})	Electricity charged into storage (total)	MWh	Projects with storage	Continuous; aggregated per period	Storage charge meter(s) / BMS logs	Cross-check vs storage discharge and SoC
(E^{DIS}_{t})	Electricity discharged from storage to internal bus and/or delivery point	MWh	Projects with storage	Continuous; aggregated per period	Storage discharge meter(s) / BMS logs	Cross-check vs charge and SoC
Storage state of charge (SoC)	SoC time series and endpoints for period	% / kWh	Projects with storage	Continuous	BMS records	Integrity checks; plausibility
(E^{GRIDCH}_{t})	Grid-sourced charging electricity attributable to credited delivery	MWh	Storage with grid charging	Per period	Determined via metered imports and allocation method	Conservative allocation; auditable logic
(EG_{FOSSIL,j,t}) or (FC_{i,t})	Fossil generator electricity and/or fuel consumption	MWh / fuel units	Projects with fossil generation	Continuous when operating; aggregated per period	Generator meters; fuel logs; invoices	Meter calibration; fuel reconciliation
(EF_{GRID,t}) / (EF_{CAPT,t})	Baseline emission factor(s) applied	tCO₂e/MWh	As applicable	At least per period	Official datasets / baseline source data	Version control; applicability checks
(EF_{GRIDCH,t})	Emission factor for grid charging electricity	tCO₂e/MWh	Storage with grid charging	At least per period	Official datasets / PCS-recognised sources	Conservative selection; version control
Meter inventory and locations	Identification of all meters used	N/A	All projects	At commissioning; update upon change	Meter register; single-line diagram	Change control; versioned diagrams
Calibration records	Calibration and accuracy evidence	N/A	All projects	Per applicable standard; at least annually unless stricter	Calibration certificates; maintenance logs	Traceability; corrective actions

10.4 Metering requirements

Net electricity delivered used for quantification shall be measured using revenue-grade or equivalent meters at the defined point(s) of delivery. Metering points shall be unambiguous and consistent with delivery configuration and baseline determination.

Where storage is present, the project shall install and maintain meters or auditable measurement systems sufficient to quantify storage charge and discharge. Where grid import can charge storage or supply loads, grid import shall be metered.

Where fossil generation exists and can supply credited delivery, fossil electricity and/or fuel consumption shall be metered and recorded to enable conservative project emissions calculation.

10.5 Energy balance and reconciliation requirements

For each monitoring period, the project shall perform and document an energy balance reconciliation that demonstrates consistency among delivery, generation, imports, storage flows, and losses.

At minimum, the reconciliation shall include:

1. Net electricity delivered at delivery point(s).

2. Total on-site generation by source where relevant for allocation and fossil accounting.

3. Total grid/import electricity entering the boundary.

4. Total storage charge and discharge quantities and SoC change across the period.

5. Identification and conservative treatment of unaccounted differences.

Where the reconciliation indicates inconsistencies that could increase credited reductions, the project shall correct the data or apply conservative treatment.

10.6 Data quality and QA/QC

Monitoring data shall be subject to QA/QC controls sufficient to ensure accuracy and integrity. At minimum, the project shall implement documented procedures for data collection, processing, review, and change control, including an auditable trail from raw records to reported totals.

Internal consistency checks shall be applied, including reconciliation of import/export settlement records, cross-checks between storage BMS records and metered charge/discharge, and plausibility checks against expected operational performance.

10.7 Data gaps and conservative treatment

Where monitored data are missing, corrupted, or otherwise unavailable, the project proponent shall apply a conservative approach to gap-filling that does not increase credited reductions.

For delivery meters, where no reliable substitute exists, missing delivery data shall be treated as zero for the affected interval.

For storage and import data relevant to allocation of grid-charged energy, missing data shall be treated conservatively such that grid-sourced contribution is not understated. If credible conservative allocation cannot be demonstrated, the project shall apply conservative deductions up to and including zero issuance for the affected period.

For fossil generation/fuel data, missing data shall be treated conservatively such that emissions are not understated.

All data gaps and treatments shall be documented with the period affected and the impact on results.

10.8 Record retention and accessibility

The project proponent shall retain monitoring records and supporting evidence for a period consistent with PCS requirements and sufficient to allow validation and verification across the crediting period and subsequent audits.

Records shall be stored to prevent loss and unauthorised modification and shall be made available to the VVB and PCS upon request.

10.9 Monitoring report content

For each monitoring period, the project proponent shall prepare a monitoring report that includes:

1. Monitoring period definition and operational summary.

2. Hybrid configuration and any changes since the previous period.

3. Metering configuration and any changes since the previous period.

4. Net electricity delivered data and evidence.

5. Grid import and storage charge/discharge data and energy balance reconciliation.

6. Fossil generation/fuel use data and calculated project emissions where applicable.

7. Baseline emission factor(s) applied and any updates.

8. Leakage assessment and quantification where applicable.

9. Data gaps and conservative treatments applied.

10. Full calculation of net emission reductions.

Chapter 11 - Uncertainty and Conservativeness

11.1 Principle

Uncertainty shall be managed to protect environmental integrity. Where uncertainty affects the quantification of emission reductions, the project proponent shall apply conservative approaches that avoid over-crediting.

Uncertainty treatment shall be transparent, documented, and verifiable. Weak data shall not be compensated by favourable assumptions.

11.2 Identification of uncertainty sources

The project proponent shall identify and document the sources of uncertainty that may materially affect baseline emissions, project emissions, leakage, and net emission reductions. For hybrid systems, uncertainty commonly arises from electricity metering, storage charge and discharge measurement, storage losses, allocation of charging sources where multiple sources exist, fossil generation contribution and emissions, baseline emission factor selection, and the presence of data gaps or monitoring system changes.

Only uncertainty sources that are within the project boundary or directly affect the attribution of electricity delivered for crediting shall be considered for conservative treatment under this methodology.

11.3 Electricity metering uncertainty

Meters used for quantification shall meet applicable accuracy requirements and shall be calibrated and maintained. The project proponent shall demonstrate meter integrity, calibration validity, and data traceability for the monitoring period.

Where meter accuracy is degraded, calibration is overdue, integrity cannot be demonstrated, or data are incomplete, the project proponent shall apply conservative treatment to the affected monitoring data. Conservative treatment shall not result in higher net electricity delivered than would be supported by compliant metering and auditable records.

11.4 Storage measurement uncertainty and treatment of losses

Where storage is present, the project proponent shall manage uncertainty in storage measurements conservatively. The project shall ensure that storage charge, storage discharge, and state of charge data are internally consistent and reconcilable with independent metering where available.

Where storage metering is incomplete or inconsistent with the battery management system records, the project proponent shall resolve inconsistencies using auditable evidence. Where inconsistencies cannot be resolved, the project shall apply conservative treatment that does not increase credited reductions, including conservative allocation of charging sources and conservative treatment of losses.

Storage losses and auxiliary consumption shall not be treated as emission reductions. Where losses affect allocation, losses shall be allocated in a conservative manner so that the contribution of grid charging and fossil charging to credited delivery is not understated.

11.5 Charging source allocation uncertainty

Allocation of storage charging sources is a primary integrity risk for hybrid systems. Where the storage system can charge from multiple sources, the project proponent shall determine charging sources using metered evidence and auditable allocation logic that is consistent across monitoring periods.

Where charging sources cannot be demonstrated with auditable data, electricity discharged for crediting shall be treated as originating from the highest-emission plausible charging source for accounting purposes unless the project proponent demonstrates otherwise. Where storage can charge from the grid and the project cannot demonstrate exclusive charging from eligible renewable generation, the project shall treat discharged electricity delivered for crediting as grid-charged for the purpose of project emissions accounting, or shall apply an equivalent conservative approach that does not increase credited reductions.

Allocation methods shall not rely on discretionary claims regarding “renewable charging” that are not supported by metered evidence and operational controls.

11.6 Fossil contribution uncertainty

Where fossil generation exists within the hybrid boundary and can supply the credited delivery point, any uncertainty in quantifying fossil electricity contribution, fuel consumption, or emission factors shall be treated conservatively such that project emissions are not understated.

Where fossil contribution cannot be quantified credibly for a monitoring period, the project shall apply conservative deductions up to and including zero issuance for the affected period where integrity cannot be established.

11.7 Baseline emission factor uncertainty

Baseline emission factors shall be applied consistently and updated when required. The project shall not select emission factor sources, temporal windows, or factor variants to increase emission reductions.

Where multiple credible emission factors exist, the project shall apply the factor that best represents the defined electricity system and does not increase credited reductions due to methodological choice. Where data quality is limited, conservative factors shall be applied.

11.8 Data gaps and estimation

Data gaps increase uncertainty. Gap-filling shall follow the conservative rules in Chapter 10 and shall not increase credited reductions.

Where data gaps affect charging source allocation, the project shall apply conservative substitution such that grid-charged or fossil-charged contribution is not understated. Where credible conservative quantification cannot be demonstrated, the project shall apply conservative deductions up to and including zero issuance for the affected period.

Any estimation method that materially increases emission reductions shall require explicit justification and may be rejected at verification.

11.9 Conservative adjustments and deductions

Where uncertainty cannot be adequately reduced through improved monitoring or credible data sources, the project proponent shall apply conservative deductions to emission reductions for the affected monitoring period.

Deductions may be applied to net electricity delivered, baseline emission factor, project emissions including charging-related emissions, or final emission reductions, provided the approach is transparent and results in under-crediting rather than over-crediting.

11.10 Documentation requirements

The project proponent shall maintain documentation sufficient for validation and verification. Documentation shall include the identification of material uncertainty sources, meter specifications and calibration records, storage monitoring design and reconciliation procedures, charging source allocation logic, fossil generation and fuel monitoring records where applicable, baseline emission factor sources and update records, and records of data gaps, estimation methods, and conservative deductions applied.

Chapter 12 - Validation and Verification Guidance

12.1 Objective

This chapter defines the minimum validation and verification checks that shall be applied by the Validation and Verification Body (VVB) to determine whether the project is eligible, correctly applies this methodology, and has quantified emission reductions in a complete and conservative manner.

Where the VVB identifies non-conformities that materially affect applicability, attribution integrity, storage charging source treatment, fossil contribution accounting, baseline integrity, monitoring integrity, or quantification results, the VVB shall not issue a positive opinion for registration or issuance unless the non-conformities are corrected and corrective evidence is provided.

12.2 Validation scope

At validation, the VVB shall confirm that the project meets eligibility and applicability conditions and that the project design and monitoring system can implement this methodology as written. The VVB shall assess whether the hybrid configuration is clearly defined, whether all components that can affect electricity delivery and emissions are included in the boundary, and whether the project has a monitoring system capable of producing complete and auditable data.

The VVB shall confirm that the delivery configuration is clearly defined and evidenced, including the point(s) of delivery used for crediting and the metering configuration that measures net electricity delivered.

12.3 Validation checks on applicability and eligibility

The VVB shall confirm that the project is within the scope of this methodology and that exclusion triggers do not apply. The VVB shall assess whether the project has auditable metering and attribution capability sufficient to implement the storage integrity and fossil contribution requirements.

The VVB shall verify legal compliance and permitting, including permits relevant to renewable generation, storage installation and operation, fuel use where applicable, environmental approvals, and grid interconnection.

The VVB shall assess whether the project proponent has the right to claim emission reductions and whether double counting risks are addressed. The VVB shall evaluate whether contractual and ownership arrangements create any overlapping claims on the same electricity attributes or emission reductions.

12.4 Validation checks on boundary definition and metering architecture

The VVB shall assess whether the project boundary is clearly defined and supported by engineering documentation, including a single-line diagram and a meter register identifying all delivery meters, import meters, storage charge and discharge measurement points, and fossil generator meters where applicable.

The VVB shall confirm that the metering architecture can support an energy balance reconciliation for each monitoring period and that the reconciliation approach is defined in the monitoring plan. The VVB shall assess whether the project’s data management system can maintain an auditable trail from raw records to reported totals.

Where commingling behind-the-meter could prevent attribution of charging sources or fossil contribution, the VVB shall assess whether the project has sufficient metering and controls to prevent over-crediting. If attribution cannot be demonstrated and the uncertainty could increase credited reductions, the VVB shall conclude that the methodology is not applicable to the project.

12.5 Validation checks on baseline scenario and emission factor selection

The VVB shall assess whether the baseline scenario is plausible, conservative, and consistent with the delivery configuration. The VVB shall confirm that the electricity system definition is clear, evidenced, and consistently applied.

The VVB shall verify that the baseline emission factor approach selected is applicable to the defined grid/system or baseline source and is not selected to maximise emission reductions. The VVB shall assess baseline update triggers and the project’s capability to apply updates during monitoring.

Where storage is present, the VVB shall specifically assess the project’s treatment of charging sources and confirm that the baseline approach is not structured to credit energy shifting of grid electricity as if it were generation.

12.6 Validation checks on additionality

The VVB shall assess the additionality demonstration for completeness and credibility. The VVB shall confirm that the project is not legally mandated and that the investment or barrier analysis is based on project-specific evidence, reflects decision-time context, and includes material revenues that affect the additionality claim, including revenues from ancillary services, capacity payments, or firming arrangements where applicable.

The VVB shall assess common practice and determine whether the conclusion is supported by sufficient data and an appropriate definition of the applicable context.

12.7 Verification scope

At verification, the VVB shall confirm that monitoring data and calculations for each monitoring period are complete, accurate, and traceable, and that the project remains eligible under this methodology.

The VVB shall verify that the hybrid configuration and metering arrangement have not changed in a manner that affects attribution, fossil contribution accounting, storage charging source treatment, or baseline applicability without appropriate PCS approval.

12.8 Verification checks on electricity delivery and reconciliation

The VVB shall verify net electricity delivered at the defined point(s) of delivery using primary meter records and settlement data where applicable. The VVB shall reconcile reported totals against raw time-series data and assess data gaps and conservative treatments.

Where storage is present, the VVB shall verify storage charge and discharge quantities, state of charge consistency, and the energy balance reconciliation for the monitoring period. The VVB shall assess whether the energy balance closes within reasonable tolerance and whether any unexplained differences could increase credited reductions. Where inconsistencies exist, the VVB shall require correction or conservative treatment.

12.9 Verification checks on charging source allocation and grid-charging emissions

Where storage can charge from the grid, the VVB shall verify the determination of grid-charged electricity attributable to credited delivery and the emission factor applied to charging electricity where applicable. The VVB shall assess whether allocation logic is auditable, consistently applied, and conservative.

Where charging sources cannot be determined for the monitoring period or where data gaps prevent credible allocation, the VVB shall require conservative treatment such that grid-charged contribution is not understated. Where integrity cannot be established, the VVB shall apply conservative outcomes up to and including zero issuance for the affected period.

12.10 Verification checks on fossil contribution and project emissions

Where fossil generation exists and can supply the credited delivery, the VVB shall verify fossil electricity contribution and/or fuel consumption using generator meters, fuel logs, invoices, and operational records. The VVB shall verify the emission factors used and reproduce the project emission calculations.

Where fossil contribution cannot be quantified credibly or where records are incomplete, the VVB shall require conservative treatment such that project emissions are not understated. Where integrity cannot be established, the VVB shall apply conservative outcomes up to and including zero issuance for the affected period.

12.11 Verification checks on baseline emission factor application

The VVB shall confirm that the baseline emission factor applied corresponds to the defined electricity system and monitoring period and that any required updates have been applied. The VVB shall assess whether emission factor selection is consistent and not designed to increase credited reductions.

12.12 Calculation verification

The VVB shall reproduce emission reduction calculations using verified inputs and shall confirm correct equations, units, and deductions. The VVB shall confirm that emission reductions are not claimed for periods with zero or negative results and that rounding is conservative.

12.13 Non-conformities and corrective actions

The VVB shall classify non-conformities based on materiality. Material non-conformities shall be corrected before a positive validation opinion or verification statement is issued.

Where corrections require changes to metering architecture, charging source allocation logic, fossil accounting, baseline application, or calculation methods, the VVB shall verify revised materials and confirm that revisions do not introduce over-crediting.

12.14 Common failure conditions under this methodology

A project shall be treated as having a material integrity failure where the VVB determines that net electricity delivered cannot be verified, where the energy balance cannot be reconciled, where charging sources for storage cannot be determined and the uncertainty could increase credited reductions, where fossil contribution exists and cannot be quantified and deducted conservatively, or where monitoring and data controls are insufficient to maintain an auditable trail.

12.15 Documentation requirements

The project proponent shall provide the VVB and PCS with all documents and datasets necessary to perform the checks in this chapter. Evidence shall be organised, traceable, and sufficient to support replication of results and independent assessment.

Chapter 13 - References

13.1 General requirement

The project proponent shall use credible, publicly available, and verifiable sources for all default values, emission factors, and technical assumptions applied under this methodology. References shall be sufficiently specific to allow independent replication, including the title, issuing entity, version number or publication date, and the relevant sections or datasets.

Where multiple credible sources exist for a parameter, the project proponent shall justify the selection and shall apply conservative choices where uncertainty exists.

13.2 Minimum reference categories

This methodology relies on the following minimum reference categories where applicable. PCS documents apply, including the relevant PCS standards, this methodology, any referenced PCS methodological tools, and applicable PCS templates and forms. Host country laws and regulations apply where they affect hybrid electricity systems, including rules relevant to generation licensing, storage operation, fuel use, grid interconnection, environmental compliance, and electricity market participation. Official grid emission factor publications or officially recognised electricity system emissions datasets apply for baseline and charging electricity emission factors where relevant.

National or international fuel emission factors and combustion guidelines apply where fossil components are included. Technical standards for electricity metering, calibration, and accuracy requirements apply for all meters used for crediting and allocation. Technical references relevant to storage measurement, metering configuration, and energy accounting apply where storage integrity depends on those standards.

13.3 Citation and recordkeeping requirements

All sources used shall be cited in the project documentation and retained as part of the project record. Where a data source is updated periodically, the project proponent shall retain the specific version used for each monitoring period and demonstrate consistency with baseline and charging-emissions update requirements.

Annex A - Parameters and Default Values

A.1 General

This annex specifies the minimum parameters required to implement this methodology. Project proponents shall use measured data where required. Default values may be used only where explicitly allowed and shall be justified as applicable and conservative.

Parameter	Description	Unit	Applicable to	Data source / method	Monitoring frequency	Default value allowed
(EG_{DEL,t})	Net electricity delivered at defined delivery point(s) for monitoring period (t)	MWh	All projects	Delivery meter(s) suitable for settlement or equivalent; settlement data where available	Continuous; aggregated per period	No
(EG_{DEL,t,r})	Net electricity delivered via route (r) in period (t)	MWh	Multi-route projects	Route-specific meters or auditable allocation	Continuous; aggregated per period	No
(E^{IMP}_{t})	Electricity imported into the hybrid boundary from external sources	MWh	Projects with imports	Import meter(s); settlement/billing records	Continuous; aggregated per period	No
(E^{CH}_{t})	Electricity charged into storage (total)	MWh	Projects with storage	Charge meter(s) and/or auditable BMS logs	Continuous; aggregated per period	No
(E^{DIS}_{t})	Electricity discharged from storage (total)	MWh	Projects with storage	Discharge meter(s) and/or auditable BMS logs	Continuous; aggregated per period	No
(E^{GRIDCH}_{t})	Grid-charged electricity attributable to credited delivery	MWh	Storage with grid charging	Allocation based on metered imports, charge/discharge and auditable logic	Per period	No
(EF_{GRID,t})	Grid emission factor for baseline (delivery)	tCO₂e/MWh	Grid-connected baseline	Official grid EF dataset applicable to grid/system and period	At least per period; updated as required	Yes, only where PCS recognises the source as default
(EF_{CAPT,t})	Baseline captive source emission factor	tCO₂e/MWh	Captive displacement baseline	Derived from measured baseline data or conservative defaults	At least per period	Limited; only if measured data unavailable and conservative defaults justified
(EF_{GRIDCH,t})	Emission factor for charging electricity	tCO₂e/MWh	Storage with grid charging	Official dataset applicable to charging electricity in period	At least per period; updated as required	Yes, only where PCS recognises the source as default
(FC_{i,t})	Fuel consumption of fuel (i) for fossil generation within boundary	fuel unit	Projects with fossil generation	Fuel logs, invoices, tank records, flow meters	Continuous/event-based; aggregated	No
(EF_{FUEL,i})	Emission factor for fuel (i)	tCO₂e/fuel unit	Projects with fossil generation	Official factors or authoritative references	When factor updates or annually	Yes, if authoritative published factors are used
(EG_{FOSSIL,j,t})	Electricity generated by fossil unit (j) supplying credited delivery	MWh	Projects using electricity-based fossil accounting	Generator meter(s), operational logs	Continuous; aggregated per period	No
(EF_{UNIT,j})	Emission factor for fossil unit (j)	tCO₂e/MWh	Projects using electricity-based fossil accounting	Unit-specific factor supported by evidence	When factor updates or at verification	Limited; only with conservative justification

Annex B - Worked Example

B.1 Example purpose and limitations

This worked example is illustrative and demonstrates calculation logic. Project proponents shall use project-specific monitored data, applicable emission factors, and the correct treatment of grid-charged storage and fossil contribution where applicable.

B.2 Example inputs

Assume a hybrid system exports electricity to the grid. The system includes solar PV, a battery, and a diesel generator that occasionally supports export. The battery can charge from both PV and the grid. The monitoring period is one year.

Table B-1. Example inputs for monitoring period

Item	Value	Notes
Net electricity exported	120,000 MWh	Delivery/export meter
Baseline grid emission factor	0.650 tCO₂e/MWh	Example only
Diesel fuel consumption	1,800,000 litres	Example only
Diesel fuel EF	0.00268 tCO₂e/litre	Example only
Grid-charged electricity attributable to credited delivery	20,000 MWh	Determined via metered imports and allocation
Charging EF	0.650 tCO₂e/MWh	Example only
Leakage	0 tCO₂e	None identified

B.3 Baseline emissions

B.4 Project emissions

B.5 Net emission reductions

No credits are issued for any period in which the result is zero or negative.

Annex C - Monitoring Data Sheet

C.1 Monitoring log requirements

The project proponent shall maintain a monitoring log that allows independent reproduction of monitoring period totals and linkage to raw records. The monitoring log shall be maintained for each monitoring period and retained with supporting evidence.

Table C-1. Monitoring data sheet (minimum fields)

Field	Description	Unit / format	Required
Monitoring period ID	Unique identifier	Text	Yes
Period start date/time	Start of monitoring period	YYYY-MM-DD hh:mm	Yes
Period end date/time	End of monitoring period	YYYY-MM-DD hh:mm	Yes
Delivery configuration	Grid / Captive / Mixed	Text	Yes
Point(s) of delivery	Defined delivery point(s)	Text	Yes
Delivery meter ID(s)	Primary meter identifiers	Text	Yes
Meter type and class	Revenue-grade/equivalent; accuracy class	Text	Yes
Calibration certificate refs	References	Text	Yes
Net electricity delivered	Period total net delivered	MWh	Yes
Route identifier	If mixed delivery, route label	Text	Conditional
Net electricity delivered per route	Route total	MWh	Conditional
Import meter ID(s)	Import meter identifiers	Text	Conditional
Total imports	Period total imports	MWh	Conditional
Storage present	Yes/No	Text	Yes
Storage charge	Period total charged	MWh	Conditional
Storage discharge	Period total discharged	MWh	Conditional
SoC start / end	SoC endpoints	% / kWh	Conditional
Grid-charged alloc. method ref	Document/version	Text	Conditional
	Grid-charged energy attributable to credited delivery	MWh	Conditional
Fossil generator present	Yes/No	Text	Yes
Fossil unit ID(s)	Identifier(s)	Text	Conditional
Fuel type and quantity	Fuel and consumption	Unit as metered	Conditional
Fuel EF source/version	Dataset name, version/date	Text	Conditional
Calculated	Fossil emissions	tCO₂e	Conditional
Charging EF source/version	Dataset name, version/date	Text	Conditional
Calculated	Charging-related emissions	tCO₂e	Conditional
Baseline EF used	or	tCO₂e/MWh	Conditional
Baseline EF source/version	Dataset name, version/date	Text	Conditional
Energy balance reconciliation ref	Reconciliation record ref	Text	Yes
Data gaps present	Yes/No	Text	Yes
Gap treatment description	Method and conservative treatment	Text	Conditional
Calculated BE_t	Baseline emissions	tCO₂e	Yes
Calculated PE_t	Total project emissions	tCO₂e	Yes
Calculated LE_t	Leakage emissions	tCO₂e	Conditional
Calculated ER_t	Net emission reductions	tCO₂e	Yes
Prepared by / date	Responsible person and date	Text / YYYY-MM-DD	Yes
Internal review by / date	Reviewer and date	Text / YYYY-MM-DD	Yes

Definitions and Acronyms

D.1 Definitions

For the purposes of this methodology, the following definitions apply.

Additionality means the demonstration that the project activity results in emission reductions that would not have occurred in the absence of the project and the incentive from carbon crediting.

Allocation means the method used to attribute electricity flows and associated emissions among sources, routes, charging inputs, and delivered outputs in a hybrid system where commingling occurs.

Auxiliary electricity consumption means electricity consumed to operate the hybrid system and associated infrastructure, including inverters, controls, communications, lighting, substation auxiliaries, and other operational loads.

Baseline emissions (BE_t) means the GHG emissions that would occur in monitoring period t in the absence of the project activity, associated with the generation of the electricity displaced by the project.

Baseline emission factor means the emission intensity applied to the displaced electricity generation in the baseline scenario, expressed in tCO₂e per MWh.

Baseline scenario means the most plausible electricity supply that would serve the same electricity service in the absence of the project activity, determined in accordance with Chapter 5.

Battery management system (BMS) means the control and monitoring system for a battery energy storage system that records and manages operational parameters including state of charge, charge and discharge limits, and operating status.

Captive electricity system means a defined electricity supply and consumption arrangement in which electricity is delivered to and used by a specific facility or set of loads, and where displacement is assessed against an identified baseline electricity source.

Charging electricity means electricity that enters an energy storage system for the purpose of later discharge, measured at a defined charging metering point and expressed in MWh.

Commingling means the condition in which electricity from multiple sources is combined within the same electrical bus or distribution system such that the origin of electricity delivered to a defined delivery point cannot be traced without metering and auditable allocation.

Control logic means the documented operating strategy and automated or manual control rules that determine how generation sources, storage, imports, and auxiliary generators are dispatched, including how storage is charged and discharged.

Delivery configuration means the physical and contractual arrangement by which project electricity is delivered, including grid export, captive supply, or mixed delivery, as defined and evidenced for quantification under this methodology.

Delivery point means the defined point or points at which net electricity delivered is measured for crediting and baseline displacement purposes, such as the point of interconnection export meter or a captive delivery meter.

Discharging electricity means electricity that exits an energy storage system and supplies the internal bus and/or delivery point, measured at a defined discharging metering point and expressed in MWh.

Electricity import means electricity that enters the hybrid system boundary from an external electricity system, including grid imports used to serve loads or to charge storage, measured at a defined import metering point.

Electricity system means the grid or defined captive supply system to which the project delivers electricity and against which displacement is assessed.

Energy balance reconciliation means the documented consistency check that compares measured electricity delivered, generated, imported, charged, discharged, and changes in storage state of charge to identify and resolve discrepancies and to ensure that accounting does not overstate credited results.

Emission reductions (ER_t) means the net GHG emission reductions in monitoring period t, calculated as baseline emissions minus project emissions and leakage emissions, in accordance with Chapter 9.

Fossil contribution means the portion of electricity delivered for crediting that is supplied directly or indirectly by fossil fuel-based generation within the hybrid system boundary, including electricity that charges storage and is later discharged.

Grid emission factor (EF_GRID,t) means the emission intensity of electricity generation for the defined grid/system applicable to monitoring period t, expressed in tCO₂e per MWh, and applied to quantify baseline emissions for grid-connected delivery.

Grid-charged electricity attributable to credited delivery (E^GRIDCH_t) means the quantity of electricity imported from the grid that is charged into storage and is attributable, using auditable and conservative allocation, to electricity delivered at the delivery point for which emission reductions are claimed during monitoring period t.

Leakage (LE_t) means an increase in GHG emissions occurring outside the project boundary that is attributable to the project activity and is measurable, attributable, and material under this methodology.

Material change means a change in hybrid configuration, storage operation strategy, control logic, charging sources, delivery configuration, ownership/control, metering arrangement, boundary definition, or operational conditions that may affect applicability, baseline, additionality, monitoring, or quantification under this methodology.

Metering point means a physical location where electricity is measured by a defined meter used for quantification, allocation, or reconciliation, including import meters, delivery meters, storage charge/discharge meters, and fossil generator meters.

Monitoring period means the time interval for which monitored data are aggregated and emission reductions are quantified and verified for issuance purposes.

Net electricity delivered (EG_DEL,t) means the net quantity of electricity measured as delivered at the defined delivery point(s) for monitoring period t, expressed in MWh, and used as the basis for baseline emissions calculations under this methodology.

Project boundary means the physical and operational boundary that includes relevant components and emission sources necessary to quantify emission reductions in a complete and conservative manner under this methodology.

Project emissions (PE_t) means GHG emissions occurring within the project boundary in monitoring period t that are attributable to the project scenario and relevant to the quantification of net emission reductions, including emissions from fossil fuel combustion supplying credited delivery and emissions associated with grid-charged electricity contributing to credited delivery where applicable.

Revenue-grade meter means an electricity meter suitable for commercial settlement or equivalent accuracy and integrity requirements in the applicable electricity market or jurisdiction.

Route (r) means a defined electricity delivery pathway used for accounting where multiple delivery configurations exist, each supported by metering or auditable allocation.

State of charge (SoC) means the stored energy level of an energy storage system at a given time, expressed as a percentage of rated capacity and/or as an energy quantity.

Validation and verification means independent assessment activities performed to confirm eligibility, methodological correctness, data integrity, and quantified emission reductions for registration and issuance under PCS.

D.2 Acronyms

Table D-1. Acronyms

Acronym	Meaning
BE	Baseline Emissions
BMS	Battery Management System
EF	Emission Factor
EG	Electricity delivered (as used in equations)
ER	Emission Reductions
GHG	Greenhouse Gas
LE	Leakage Emissions
MWh	Megawatt-hour
PE	Project Emissions
PCS	Planetary Carbon Standard
PCC	Planetary Carbon Credit
QA/QC	Quality Assurance / Quality Control
SoC	State of Charge
VVB	Validation and Verification Body