LOADING

Type to search

Singapore starts trading renewable energy certificates on Blockchain

Share
Story Highlights

  • Energy trading to become decentralized

  • The best rates at any time

Decentralized energy trading

There are renewable energy initiatives around the world. Countries are seeking to harness the power of solar and wind energy on a growing scale. Trading such energy reserves can benefit from a completely new infrastructure. The Blockchain technology will play its role, at least according to the Singapore SP group.

High transparency and low costs

SP Group is one of the leading providers of utilities in Singapore. The company is looking for ways to make energy trading more efficient and decentralized. The study of new technologies plays an important role in this regard. For the company, the new blockchain-based system is the next logical step in evolution. This platform facilitates the trade in renewable energy certificates in the country.

Each certificate is a unit of green energy. By opening a new trading platform, companies can offset their non-green energy production through this asset. Using the blockchain for such a system makes a lot of sense. This improves transparency and reduces costs, since there is no centralized facility in the process. This new blockchain platform will be open to all renewable energy providers in Singapore. This mixed market will give users access to the best rates at any time. More importantly, this new platform compensates for the high costs associated with verifying these certificates. Although they may be sold by other means, the general interest remains relatively low.

This blockchain platform is just the first step for the SP group. Wong Kim Yin, CEO of the company, confirms that he seeks to decentralize energy trading on a wider scale. Focusing on renewable energy sources in Singapore will provide the company with valuable information on the use of blockchain. Adding a market-based approach to certificate exchange can give the market the necessary impetus. Wong adds: “A consumer in Singapore who wants to buy green energy can now, thanks to the REC exchange, buy a REC from a hydrogen producer in Laos. Previously, you had large power plants in a centralized model, and you would transfer power to households. In the future you will have solar panels and you will have batteries. With this model, the power grid will be much more reliable.”

In Singapore, green energy is not so easy to find. Land restrictions make it impossible to build farms with renewable energy sources. Solar panels are relatively common, although certain restrictions apply. The demand for green energy continues to grow despite these obstacles. This may make this blockchain decision even more important in the future.

Tags:
Mur Kvantaliani

MUR KVANTALIANI Mur Kvantaliani is an International researcher, scholar and journalist. His interests focus on geopolitics, economics, renewable energy and new technologies. Mur holds Masters degrees in English and German literature. He has lived and worked in the United States and Germany where he developed his career as a journalist and creative writer.

  • 1