Singapore Powers Launched Blockchain-Based REC Marketplace

By Chetna Phour

Now it becomes easy for small producers of solar energy in Singapore to sell their Carbon Credits to the buyers who are looking forward to offsetting their carbon footprint. In a press release, Singapore Powers (SP), a major entity which is providing electricity and gas transmission, distribution services, and market support services to more than 1 million customers in Singapore revealed that the company has launched a blockchain powered renewable energy certificate (REC) marketplace.

In the ASEAN Energy Business Forum which was held in Singapore, SP Group unveiled the REC marketplace. The company is planning to use blockchain technology to increase transparency and efficiency. In the press release the Chief Digital Officer of the SP Group, Samuel Tan said that

“Through blockchain technology, we enable companies to trade in renewable energy certificates conveniently, seamlessly and securely, helping them achieve greener business operations and meet their sustainability targets.”

The digital marketplace will connect the buyers and sellers of green credits or carbon credits. The platform will ensure safe, fast, and transparent transaction. Currently, in Singapore, renewable energy certificates (RECs) are bought and sold manually, so it becomes hard for the small-scale buyers to find sellers. The newly launched platform will automate the selling and verification process of RECs and will make it easier to connect buyers and sellers.

The platform will support not only local RECs but also international RECs. A particular amount of electrical energy which is produced by the solar batteries will serve as proof of carbon credits. Any clean energy producer in the world which produces one megawatt-hour of electricity can be issued one REC. This REC will be the proof that the electricity is sustainable and the document can also be sold.

The main aim of RECs is to encourage the production of green energy. A four bedroom flat uses only about 12 Kilowatt-hour of electricity in a day. The platform will allow the trading of RECs in 0.001 units which means now the small players like households will be able to sell their green credits. Earlier the buying and selling of the green credits was done by only large companies.

The company has signed its first contract with multinational banking organisation DBS Bank and global real estate developer City Developments Limited (CDL). Solar energy seller LYS Energy Solutions, Cleantech Solar Asia, and Katoen Natie Singapore have also joined the marketplace.
According to a CDL spokesman,

“Participating in SP’s blockchain-powered trading of RECs will help CDL to step up efforts to reduce carbon emissions more conveniently, seamlessly and securely.”

CDL is aiming to be powered entirely by renewable energy by 2050. Buying RECs will help the company to achieve its goal. Katoen Natie is planning for the expansion of its solar energy plant in Singapore, and now the company is looking forward to trading its excess capacity on the REC platform.