Largest Power Provider in South Korea Plans to Establish Blockchain System for Renewable Energy

The energy sector stands to greatly benefit from the use of blockchain technology, and South Korea wants to take full advantage. In a new announcement, the largest power provider in South Korea has decided to partner with local power suppliers in an effort to create a blockchain-powered system to be run by the country’s government.

  • 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.

By December 2018, the government in South Korea stated that they were going to create a virtual power plant in Busan with blockchain technology.

The announcement added that the project will be funded with a 4 billion Korean won ($3.5 million) investment.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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