Blockchain-powered renewable energy certificate (REC) marketplace is now available. Launched by Singapore’s SP Group at the ASEAN Energy Business Forum, the technology is among the first in the world.
Businesses and Renewable Energy Certificates
Renewable energy certificates help corporates and even individuals trade non-tangible energy commodities. The certificates track the transaction of energy in terms of quantity and thus creates a market for renewable energy. Consequently, the development of new renewable energy capacity is spurred. Consumers which purchase these certificates are entitled to claim an equal volume of renewable energy in consumption.
Buildings alone consume 40% of energy globally. Hence, there is a strong impetus to turn to clean energy and change the way businesses are conducted. Energy trading has become an important feature in the industry as more people and corporates become conscientious of their carbon footprint.
Blockchain for Renewable Energy Certificates
Around the world, there are multiple certification methods for trading renewable energy although the certification’s ultimate purpose is the same. SP Group’s innovation will be needed in the energy market. Blockchain technology ensures the security, integrity and traceability of each REC transaction. Thus, it is hoped that there will be a greater integration of renewable energy sources on the electricity grid.
The blockchain-powered marketplace allows buyers to be automatically matched with sellers. The matching takes place across borders according to a customer or seller’s preferences. Hence, large and small organisations can achieve their green targets. Furthermore, cross-border sustainability efforts can be achieved thanks to the utilities company’s own international reach. Overall, the technology will help contribute to Singapore’s low carbon targets as part of the Paris COP-21 Agreement.
The marketplace is designed and built in-house by the utilities group’s own team of digital energy experts. Both local and international organisations of any size, business or location will be able to trade in RECs. Various supply options including types of sellers and renewable energy sources are also supported by the REC marketplace.
The group’s Chief Digital Officer, Mr Samuel Tan, said, “Through blockchain technology, we enable companies to trade in renewable energy certificates conveniently, seamlessly and securely, helping them achieve greener business operations and meet their sustainability targets.”
First Movers Power Up
At the launch, ASEAN Energy Business Forum participants were able to see screenshots of the first purchases. As a keen driver of sustainable solutions, DBS was one of the first to make a purchase.
“As Southeast Asia’s largest bank, we recognise the leadership role we can play in promoting sustainable development, including supporting innovations in renewable energy. SP Group’s blockchain REC platform will make it more economically effective for organisations and will catalyse the transition towards a low carbon economy. We look forward to many more innovations in renewable energy technologies to achieve a sustainable, affordable, secure and inclusive energy future,” said Mr Mike Power, Chief Operating Officer of Technology and Operations, DBS.
Solar developers together with local and regional solar assets have also signed a collaboration with the utilities group to place their solar assets on the marketplace for sale of RECs. A Singapore global chemical logistics company has also come onboard as a REC seller. This very same company will launch a 6.8 MWh Solar Power Facility at a warehouse in Singapore this week. This will be Singapore’s largest single unit rooftop solar facility. The company’s Chief Executive Office said the REC marketplace gives the company access to a broader ecosystem to drive sustainability.
SP Group’s REC marketplace is a significant milestone since it ensures interoperability towards smart grid success while helping companies of various sizes to achieve their sustainability targets and reduce their environmental impact.
