Power Ledger has teamed up with Clearway Energy Group to develop a blockchain-backed platform for the trading of Renewable Energy Certificates (RECs) in the United States.
RECs are tradable commodities that represent proof that one megawatt-hour of electricity has been generated from an eligible renewable energy resource.
Companies purchase RECs as a way to meet their mandatory clean energy quotas with at least 29 US states required to supply a portion of their electricity from renewable sources each year.
Power Ledger executive chairman and co-founder Dr Jemma Green said the REC market was one that was often criticized for being opaque, but that blockchain technology could make it more efficient, secure and provide greater transparency.
“We will be able to track RECs on a blockchain ledger system from the point of creation, sale and transfer to the buyer, through to the point of retirement of the certificate and the annual sustainability audit,” said Dr Green.
“Whether companies are voluntarily meeting clean energy commitments or satisfying regulatory requirements, there is a need to ensure that renewable energy credits are being properly allocated.
“Power Ledger’s environmental attribute tracking platform will provide certainty to both buyers and sellers in this evolving market to give confidence that energy from renewable sources is indeed displacing energy produced by fossil fuels.”
The market for RECs in the United States covers both compliance and voluntary markets and is estimated to be worth over $3 billion annually.
“We believe blockchain trading technology can significantly improve the efficiency of the market for RECs in the U.S. by linking transactional functions within a common platform,” said Clearway Energy Group vice president of asset management Monique Menconi.
“We are excited to partner with Power Ledger to deliver a fully integrated, scalable, and low-cost solution.”
Clearway is the latest announcement in a series of recently formed Power Ledger partnerships.
Last month Power Ledger unveiled a project with E-NEXT’s NEXT-Incubator, the innovation arm of one of Austria’s top five largest energy utilities Energy Steiermark.
The company’s blockchain-enabled energy trading platform will be rolled out the historic city of Graz, Austria, where households will start trading solar energy with their neighbours.
Power Ledger also recently completed a trial that monetised electric vehicle charging infrastructure.
Through a partnership with Silicon Valley Power, the company’s platform tracked and managed the Low Carbon Fuel Standard (LCFS) credit generation from solar panels and charging infrastructure, creating the potential for tokenised carbon credit trading.