It will encourage trans-national REC transactions for buyers and energy generators in different countries.
SP Group launched its blockchain marketplace platform that will promote the transaction of renewable energy certificates (REC) or tradable certificates of energy generated by renewable sources.
According to a press release, through the platform, REC buyers and energy generators can buy, sell, and issue a REC transaction. It is also one of the first global REC marketplace platform powered by blockchain.
“The platform will help corporates achieve their sustainability goals by ensuring that the electricity they consume comes from renewable sources. It will also encourage a greater integration of renewable energy sources onto the electricity grid,” SP Group said.
Due to the standardised nature of blockchain infrastructure across countries, this platform will encourage trans-national REC transactions, making it convenient for renewable energy generators and REC buyers from different countries to transact with each other. “This will open future markets by creating global opportunities for the industry and making it easier for REC buyers to purchase their green credits,” the group added.
SP Group chief digital officer Samuel Tan commented, “By using blockchain technology to create a REC marketplace, we are paving the way for a wider adoption of renewable energy sources and sustainable business operations, supporting Singapore’s sustainability focus.”
SP Group noted that the use of blockchain technology will make buying and selling of REC more cost-effective and efficient. “It reduces transaction and administrative costs, through automating processes and reducing the need for third-party intermediaries. The unique attributes of blockchain also provide much higher levels of cybersecurity, increasing the transparency and integrity of the transaction,” it added.
More energy and non-energy companies are ramping up efforts to offer electricity to Singaporeans as the liberalisation of the market in the second half of the year approaches. This will allow 1.3 million households in Singapore to choose their energy provider.
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