- Blockchain technology will be the basis for South Korea’s REC transactions.
- The creation of this new system will be performed by KEPCO and two domestic power suppliers.
Blockchain technology is finding new use cases around the world, and South Korea is taking advantage of its features in a new announcement by Energy Daily. According to the publication, the Korea Electric Power Corporation (KEPCO) has decided to sign a contract involved two domestic power suppliers.
In this contract, KEPCO outlines their plant to implement a system that is entirely powered by blockchain, using it to transact Renewable Energy Certificates (RECs).
KEPCO is a corporation in South Korea with a market capitalization of $15.9 million, and both the local government and central bank in South Korea hold a majority stake. With its success, the company has a “virtual monopoly,” in terms of power generation and distribution.
The new business agreement with KEPCO and Nambu Electric Power goes along with a contract that was previously signed for the establishment of a REC system with Korea Southern Power Co., which is also based on the blockchain.
With the new agreement, these three companies plan to work together to create a blockchain pilot project for REC transactions, led by the government. The whole project will be supervised by the Ministry of Science in South Korea. After the public pilot ends, the companies will need to collaborate for the continuation of the project commercially.
According to the reports from Energy Daily, using blockchain technology will hopefully increase the efficiency and transparency of transactions involved renewable energy supply certificates. The pilot will ultimately be a part of the early market development in the blockchain industry while offering new jobs as well.
Shin Jung-sik, the president of South Power, stated that he plans to focus “all our core competencies” on both creating new businesses and welcoming “the era of energy decentralization.” Jung-sik added that the decentralization of the energy sector will involve “close cooperation” between the companies involved in this pilot.
KEPCO had previously said in 2018 that it intended to use blockchain technology and related solutions as a way to further the advancement of their next-gen micro grid. When the statement was made last fall, KEPCO commented that most of the attention will be on digitalization, decentralization, and decarbonization, which it believes will be the trends that push the energy industry to the next level.
The announcement added that the project will be funded with a 4 billion Korean won ($3.5 million) investment.