Purchased Electricity
Electricity bought from an external grid or supplier and consumed by the organisation. The primary Scope 2 emission source — the carbon was released at the power station and attributed to the consumer.
Purchased electricity is electricity acquired from an external source — the state distribution company (DISCOM) or an open-access power supplier — and consumed within the organisation’s boundary. Under GHG Protocol, the emissions associated with generating this electricity are attributed to the consumer as Scope 2.
Why purchased electricity creates Scope 2
The power station burning coal or gas to generate your electricity releases CO2. Those emissions happen off-site, but GHG Protocol assigns them to you as the consumer — because your demand drives the generation. This is the “indirect” nature of Scope 2.
India context
In India, approximately 75% of grid electricity is generated from coal and lignite. The national grid emission factor (FY 2022–23) is approximately 0.716 tCO2/MWh. For a manufacturing facility consuming 2 million kWh/year, this translates to approximately 1,432 tCO2e of Scope 2 emissions.
What is not purchased electricity
- Electricity generated by your own DG set (Scope 1 — combustion of diesel)
- Electricity from your rooftop solar (zero-emission generation, not purchased)
- Electricity from a captive wind plant you own (Scope 1 or zero depending on arrangement)
Only electricity purchased from external parties is Scope 2.