Demonstration of Blockchain-based Trading of Renewable Energy Value
This is a project we have been implementing as the representative organization since being selected by the Ministry of the Environment in FY2018, FY2019 (planned), and FY2020 (planned) to implement a Blockchain-enabled Renewable Energy Carbon Reduction Pilot Project (Project name: “Trial of a Digital Grid-based B2B System for Trading and Settling the Carbon REduction Value [CREV] of Self-Consumed Renewable Energy [Year One]”).
In this project, we are aiming to build a system for accurately measuring the amount of self-consumed renewable energy (solar power, etc.), convert that into self-consumed renewable energy value, and sell it to consumers that wish to increase their ratio of renewable energy power sources. While electricity can already be traded on platforms intended for electricity retailers, self-consumed renewable energy value can also be traded using a similar Blockchain-based method.
Trading of environmental value is currently conducted with paper certificates, and the creation of value is measured on a yearly basis. However, verifying value requires following a proscribed certification process that takes time and requires significant human labor. Blockchain technology digitizes this certification process via encryption. By continuously recording the results of certification processes into an electronic ledger that exists on a distributed system, sharing these records with all involved parties, and having the parties mutually authenticate the data, it is possible to assure the data’s authenticity. This allows the verification process to be completed instantaneously while also assuring the authenticity of the data, which has the potential to reduce verification and trading costs.
In this project, we will build an environmental value trading system that leverages the characteristics of Blockchain technology. We will also study ways to link the tradable environmental value units (CREV) being studied in this project with existing forms of tradable environmental value, as well as how to achieve compliance with systems such as RE100 and the Act on Promotion of Global Warming Countermeasures, etc.