US Energy Firm To Test Blockchain For Renewable Energy Trading

A clean energy development firm from the United States named Clearway Energy Group is apparently launching a new pilot program for blockchain. As the reports from the altcoin news are showing, the US energy firm is ready to test the concept of trading renewable energy credits on a blockchain, according to the reports from Bloomberg on June 28.

The full report shows that Clearway Energy partnered with the Ethereum (ETH) based energy trading startup Power Ledger – to build a system for trading renewable energy certificates. The startup told Bloomberg that initially, the solution will be tested in Massachusetts, generating one to five megawatts of electricity. The second test carried out by the US energy firm will apparently take place in the Midwest and generate more than 20 megawatts.

Many best cryptocurrency news sites shared the report – and the fact that US renewable energy certificates market is currently valued at over $3 billion. Therefore, the transaction costs introduced by the blockchain account for anywhere from 3% to 10% to the certificates themselves. As Bloomberg noted, Power Ledger Executive Chairman Jemma Green said that while digital certificate trading options exist, their costs can add up when they are processed through brokers or bilateral contracts across state lines.

“While there are effective digital options to trace renewable energy credits – RECs – from when they are generated to when they are retired, costs add up when seeking to aggregate and trade them through brokers or bilateral contracts across state lines, Power Ledger Executive Chairman Jemma Green said in a telephone interview,” the press release on Bloomberg noted.

Green also announced that the company plans to continue the tests for several months. The main benefit of the new trading platform will be the cheap costs and the greater efficiency than the existing methods. As the latest cryptocurrency news show, the service is planned for expansion in early 2020, Green confirmed in the press release.

As we reported last month, Power Ledger will roll out its peer-to-peer (P2P) network in Graz, the second largest Austrian city. Meanwhile, the US energy firm is ready to test new projects and pursue blockchain technology in the best way possible.