Nobody in particular enjoys paying a hefty electricity bill. It keeps going up and up. What is even worse is that many parts of our country still rely on fossil fuels and that resource is fast depleting. Moreover, this non-renewable and costly energy in production causes environment pollution. By now we all have heard about the potential of solar and other renewable energies, but what you may not know is the role Blockchain technology is going to play in this heady mix.
Renewable energy production needs a mechanism for commercial and marketing support in order to compete with fossil fuel energy. A Renewable Energy Certificate (REC) represents the property rights of the environmental, social and green attributes of renewable electricity generation. Concept of REC is already adapted in USA to minimize the presence of electricity produced from fossil fuel, in their power grid system.
Since the base commodity of the energy market, i.e., electricity does not have any geographical and physical limitations hence REC is considered as the currency of renewable energy markets. One REC represents 1MWh of energy generated from renewable sources.
Creation of REC
Blockchain technology can be used in the application of Issuance of Renewable Energy Certificates to keep transparency in the energy market. Keeping track of these RECs can be one of the innumerable applications of Blockchain in the electricity sector.
Firstly, registration of renewable energy generator is authorized by the State Nodal Agencies based on determination of eligibility of that generator. The basic information of the generator such as proposed date of commissioning, validity of Accreditation Certificate etc can be registered in Blockchain to keep them persistent.
Next, the eligibility of a generator is registered by the central agency “National Load Despatch Centre”. Particulars of information like eligibility date, reception date of the ‘Certificate of Accreditation’ from the concerned State Nodal Agency, validity of Eligibility Registration can also be kept in Blockchain.
Database for maintaining electricity production and purchase can be secured with Blockchain with the fields, such as metered electricity pushed to grid by particular generator, details of issuance of REC within valid period after renewable energy generation.
In this manner the trading of renewable energy will have transparency and authenticity if availability of RECs, details of auction and post-confirmations are kept secured in Blockchain.