There is a new system set up in Singapore that allows companies to trade renewable energy certificates on a blockchain-powered system from the utilities provider SP Group, according to an article on CNBC today. The system goes like this – companies can trade this product to offset their non-green energy production – an idea that everybody can buy into. And this system is mot just a gimmick according to the SP Group as it reduces costs and provides the public with better transparency – again, all seem to benefit from this new system.
While we have seen – and have written about – a number of sectors that use blockchain for a wide range of products and systems, we have not seen one of this kind that seems to have direct impact on energy policy in terms of focusing on green solutions. The CNBC article goes on to interview members of the SP Group who point out that the lower costs and lower friction in the market are positive factors that come with this blockchain-driven product. This REC trading allows he originator and the buyer to ensure that costs are reduced and that the market place that usually stands in the middle is eliminated. Win Win solutions like this will only accelerate green solutions for blockchain-driven systems. Also, there seems, according to the article, new ways of energy trading between Singapore and other countries in South East Asia.
Green energy options are limited by land – for example wind farms in Singapore (a small city-state) are not viable and other solutions like the above mentioned system make more sense. So in addition to providing a green solution, this product, likely useful in larger cities solves issues that major cities must address.