Singapore to Engage Blockchain for Renewable Energy Trading

In a recent report, Singapore based SP Groups have announced that the nation will be using blockchain for trading Renewable energy across the nation efficiently through Renewable Energy Certificates. The news surfaced at the Singapore International Energy Week, after SP Group CEO, Wong Kim Yin stated about the importance of blockchain in terms of energy trading.

According to the news, Yin explained how companies can buy or sell Renewable Energy Certificates(REC) among themselves as an alternative to non-renewable energy resources through Blockchain. Each REC will represent a single unit of green energy production from sources like wind or solar power, says Yin.

Further stressing on the usage of blockchain on trading RECs the group opined that blockchain can provide better transparency, low cost of operation and decentralization. Blockchain doesn’t require the presence of any third party for verifying the transactions, hence, it will reduce the cost of operation and increase the efficiency of the RECs, says Yin.

Moreover, he also stated that the platform designed by the company can also be utilized for cross-border trading of the Renewable Energy Certificates in the future. He said currently, the need transaction verification by a third party increases the cost and duration of the process, because of which many companies are not interested to use renewable resources. But, this whole lot of problem can be easily solved using the company’s platform, says SP Group.

Yin has also explained that consumers can use solar panels to sell or create their own RECs. Similarly, under dire circumstances, the nation can also import renewable energy from other nations, leading to the development of an efficiently managed renewable energy ecosystem, says Yin.