Singapore Power Group Launches Renewable Energy Certificates (RECs) Blockchain Marketplace
Blockchain Based Renewable Energy Trading Market Launched In Singapore
Singapore’s national energy company, Singapore Power, has unveiled a blockchain based marketplace for individuals and organizations willing to sell or buy green energy.
Designed in house by Singapore Power’s own team of digital energy experts, the marketplace enables originations, regardless of size, business or locations in the world, to take part in the renewable energy production and not only achieve their sustainability targets, but help preserve the world by reducing their carbon footprint.
Trading Renewable Energy Certificates
The trading platform designed allows anyone registered on the network to buy Renewable Energy Certificates (RECs). The RECs does not mean that the buyers have actually bought renewable energy, but the payment made is given to the seller (renewable energy producer) to pay for the amount of energy entered in the certificate.
The electrical power is produced on the behalf of the buyer, enabling organizations to take a green energy step, without actually purchasing and buying the setup. The market automatically matches sellers and buyers, helping companies to achieve their sustainability aims.
The blockchain market was unveiled to the public during the opening session of ASEAN Energy Business Forum. On the occasion, Samuel Tan, the Chief Digital Officer at Singapore Power said,
“Through blockchain technology, we enable companies to trade in renewable energy certificates conveniently, seamlessly and securely, helping them achieve greener business operations and meet their sustainability targets”
Active And Trading
The platform is already active and is seeing trading already. Two solar power production companies, LYS Energy Solutions and Cleantech Solar Asia are already on the platform as sellers. Another company, Katoen Natie Singapore is planning to launch its solar power plant this year and has already joined the marketplace as a seller.
City Developments Limited, the largest real estate company in Singapore and a bank, DBS have already signed up as the first buyers. These companies have shown interest in green energy previously and have procured several RECs.
Ms Esther AN, Chief Sustainability Officer at CDL said,
“As a green advocate for over two decades, CDL has always been committed to embracing technology and solutions that reduce environmental impact. Given that buildings consume 40% of energy globally, increasing the use of solar energy and neutralizing our operations’ carbon footprint has been a priority in the way we build and manage our projects. We are glad to support the innovative and timely initiative by SP Group to embrace blockchain technology as a platform to accelerate Singapore’s transition to a low-carbon economy”
The platform utilizes blockchain technology to automatically match sellers and buyers, eliminate intermediaries and give an overall secure environment for trading RECs. The decentralized technology also provides transparency and traceability of each REC transaction, pushing for a higher level of integration of renewable and green energy production into the existing electrical grid worldwide.
With Singapore and other countries toughening up on carbon emissions (The South Asian country is signatory to the Paris COP-212 agreement on ridiculing carbon emissions), renewable energy marketplaces are becoming a necessity.