Electricity budget

Definition

The electricity budget is a normative approach, defined in ITU-T L.1470, used to determine the maximum electricity consumption allowable for the ICT sector to remain consistent with 1.5°C climate goals. It functions as a top-down constraint that allocates a fair share of total global electricity generation to the ICT industry based on its historical and projected contributions.

Key Characteristics

  • Normative Constraints: Establishes a ceiling for energy use rather than just emissions, allowing for a better understanding of the link between energy efficiency and grid decarbonization.
  • Top-Down Allocation: Uses global energy generation data from the International Energy Agency (IEA) to derive sector-specific limits.
  • Scenario Integration: Directly tied to the 1.5°C scenario to ensure sector growth does not exceed planetary boundaries.
  • Flexibility: Provides a framework to balance the absolute contraction of emissions with the growing electricity demands of the digital economy.

Applications

  • Determining sustainable energy growth trajectories for telecommunications and data center operators.
  • Informing organizational climate strategy in alignment with global decarbonization frameworks.
  • Supporting policy development to ensure the digital sector’s energy demand does not compromise broader national or global climate commitments.

Mentions in Source

  • “The third normative approach considers the global need for electricity as outlined by the International Energy Agency (IEA) for different scenarios and develops an interim 1.5°C scenario within which ICT should not expand its current share of electricity.” — ITU-T L.1470 (Greening Digital)