Singapore-based SP Group, one of the leading utility companies in Asia, has launched a renewable energy certificate (REC) trading venue by incorporating blockchain technology in a bid to attract more clients in the highly competitive REC market. The new trading system was unveiled on Monday during the Energy Business Forum, organized by the Association of Southeast Asian Nations (ASEAN) in Singapore, SP said in a press release.
SP Group decided to implement blockchain solutions to improve its REC trading offerings compared to the competitor’s platforms. Developed as a distributed ledger technology (DLT), blockchain has widened its usage far beyond cryptocurrency itself. DLT can reduce costs and speed up the deal-making process by automatically generated smart contracts, which eliminates the need for a third party. Moreover, blockchain can track all activities and thus add security, transparency, and trust.
“The unique attributes of blockchain technology will ensure the security, integrity and traceability of each REC transaction. This will drive the greater integration of renewable energy sources on the electricity grid,” the Singapore-based company explained in its press release.
SP REC market supports local, regional, and international renewable energy contracts. The platform includes various types of sellers, regardless of size, business and location. SP Group also wants to contribute to carbon emission targets that Singapore’s government has endorsed as part of the Paris COP-21 international climate agreement.
The first SP REC buyers were the real estate company City Developments Limited (CDL) and DBS Bank (DBS), both from Singapore. Local solar developers Cleantech Solar Asia and LYS Energy Solutions also joined the new blockchain-powered market.
REC enables buyers and sellers of renewable energy to sign contracts and to guarantee that companies can meet their “green” goals. Solar and wind electric as well as geothermal and hydropower companies are some of the big players in the REC market.