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Blockchain has had a presence in the energy industry for some time now and a recent participant is Clearway Energy Group. As one of the biggest entities in the clean energy industry in the U.S., its role in growing the renewable energy certificates (REC) aspect is substantial. Now, it is partnering with a tech startup specializing in blockchain for tracking and trading of RECs in the U.S.
Clearway will be working with Power Ledger to create a blockchain platform that will allow for better, more efficient, and more affordable REC transactions, Bloomberg reports.
When working with brokers and third-party companies, the expenses that come with REC transactions can put on additional amounts anywhere between 3 to 10 percent. Reducing such costs will be a huge win for the clean energy company since it will then be able to use the money saved for other projects.
In order to achieve this, the partners will be conducting tests, with the first being in Massachusetts. It will involve 1 to 5 Megawatts and if it is successful, they will then move on to 20 Megawatts in a second test.
This is to find out if blockchain tracking of REC is actually a realistic project. If it is, there are plans to expand the project come 2020, Cointelegraph reports.
Initiatives like this are where blockchain is expected to shine the most in the coming years due to how effective it can be at reducing costs. By eliminating the middleman, there is no need to pay for services that can easily be accessed through a distributed digital ledger. What’s more, transparency is also expected to eventually lead to more freedom of operations for companies.
