Japan’s Kansai Electric Power Company (KEPCO) has extended its agreement with Australia’s Power Ledger blockchain firm, in an expansion of an existing trial program for peer-to-peer surplus energy trading. The trial program relies on a Power Ledger-designed blockchain platform for trading renewable energy, creating and tracking renewable energy certificates, or RECs.
As Ledger Insights reports:
The two firms previously completed a peer to peer (P2P) energy trading trial for surplus power in Osaka, with automatic settlements using cryptocurrency. Under the new agreement, KEPCO will use Power Ledger’s blockchain platform to create, track, trade and provide for the settlement of non-fossil value (NFV) certificates (a type of REC) generated by rooftop solar systems.
The NFVs have been in use since 2018, when Japan began using them to verify that “electricity came from a renewable energy source.” Businesses that are committed to solely relying on renewable electricity use the certificates to show that they are complying with the RE100 standard. According to Power Ledger, the test’s expansion will enable blockchain tracking of RECs from the moment electricity is generated until it is claimed by users.
The blockchain platform also enables KEPCO’s consumers to trade renewable energy certificate and REC tokens will be generated and stored in a KEPCO wallet. Power Ledger co-founder Jemma Green said that the company is essentially developing a new operating system for an evolving energy market:
“The market for trading environmental commodities is evolving rapidly, and there is mounting pressure to ensure credits aren’t double-counted. Power Ledger is building an operating system for the new energy marketplace.”