Kansai Electric Power Co Inc (KEPCO) is extending its trial of a blockchain-powered system for transacting renewable energy credits.
On Dec. 9 a press release was shared by the second-largest power utility in Japan that it is extending the trial of a blockchain-enabled renewable energy trading platform by Australian tech firm Power Ledger. The trial is a blockchain-powered system for transacting renewable energy credits.
Existing Energy Certificates And Carbon Credit Systems in Japan Is Complicated and Fragmented
In May 2019, the country’s Ministry of Economy, Trade and Industry decided to continue its sale of non-fossil fuel value certificates (NFVs). These provide energy retailers with proof that the portion of energy under the certificate is generated from renewable energy sources.
It can also be used to assess which power plants are contributing the most environmental value in order to encourage investment in green industries and can be traded, similarly to other forms of renewable energy certificates (RECs).
A local report from EKOenergy in March claimed that the existing energy certificates and carbon credit systems in Japan remained “complicated and fragmented at best.”
Monetizing On Renewable Energy Investments
Under the terms of the new agreement: KEPCO will use Power Ledger to create, track, trade and settle NVAs generated by rooftop solar systems.
Blockchain Technology’s immutability and decentralization can track certificates throughout their lifecycle, thereby reducing the potential for duplicate use. Power Ledger thus will generate REC tokens, which will be stored in a centralized KEPCO wallet.
An initial successful trial between KEPCO and Power Ledger reportedly demonstrated that allowing energy producers to trade their surplus energy via the platform was an efficient way for them to monetize their renewable energy investments. This, in turn, helps consumers with lower-cost green energy sources.
The new trial will enable KEPCO clients to use their NFVs against claims by the RE100 — a global initiative led by The Climate Group non-profit organization in cooperation with the global carbon disclosure network CDP. The initiative accepts NFV certificates provided they have tracking information from governments.
The trial is scheduled to commence in December, with results expected in March 2020.
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