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Green Blockchain: Ways to Track Sources of Energy

Green energy is the future. To find out the source of the consumed energy and ensure its green origin, certification systems and IT, such as blockchain, are required.
Green Blockchain: Ways to Track Sources of Energy
Green Blockchain: Ways to Track Sources of Energy
By 2050 the amount of clean energy will be 8126 GW
By 2050 the amount of clean energy will be 8126 GW
Blockchain is required to track electricity properly
Blockchain is required to track electricity properly
Technologies stimulate cooperation in saving CO2
Technologies stimulate cooperation in saving CO2
Years after the signing of the Paris Agreement, most experts predict that global warming will exceed the limits with catastrophic consequences. States are tightening controls and regulation in the energy sector, looking for new solutions, and setting new rules for energy companies.

Investments in the energy transition in the year of the COVID-19 pandemic reached a record high, exceeding $500 billion for the first time. BloombergNEF (BNEF) reported that last year's drop in capital expenditures allowed to establish record capacity of both solar (132 GW) and wind (73 GW) generation based on a small increase in investment.

Statista reports that by 2025 the amount of renewable energy will be 3502 GW, and around 8,126 GW by 2050. The regulatory, economic, and scientific impetus for these technologies will lead to global private investment. BDO estimates that investments in clean technologies will amount to $ 600 billion by 2023.
Figure out the Energy Source
However, reliable mechanisms are required to distribute and track electricity properly. In the power grid, electricity could be from different sources. Once available, electricity is sent to the final consumer: a family, a company, or a government agency. The network may contain electricity derived from different sources, both renewable and non-renewable. To regulate and manage CO2 emissions, it is necessary to monitor electricity produced from renewable energy sources.

Not all countries have transparent energy tracking systems, but companies in all regions demand tracking tools. In such cases, companies can get support from the international non-profit organization International REC Standard. The organization works with local certifiers. It may be a government agency or an independent body that preferably operates with the support of the state. Local certifier oversees the entire system in the country or region concerned.
Labeling Green Energy
Tracked electricity can carry additional value in the form of labeling. The international electricity labeling system is EKOenergy. EKOenergy works with the System of Guarantees of Origin and with the I-REC Standard. EKOenergy sets additional criteria to ensure that electricity generation does not harm the environment.

In the U.S., Green-e labeling is available to consumers, which is also an addition to the tracking certificate system. There is a state-accredited Green Power label in Australia. By purchasing marked electricity, consumers support the development of the renewable energy sector in the country.

Many international standards support purchasing certified electricity. In the corporate Sourcing of Renewables: Market and Industry Trends report, IRENA refers to the Greenhouse Gas Protocol, which recommends that companies purchase certified green premium electricity products.
By 2050 the amount of clean energy will be 8126 GW
By 2050 the amount of clean energy will be 8126 GW
Blockchain is required to track electricity properly
Blockchain is required to track electricity properly
Technologies stimulate cooperation in saving CO2
Technologies stimulate cooperation in saving CO2
Blockchain Makes it Trusted
However, registries and certification and labeling systems have significant disadvantages that prevent many engaged companies from switching to renewable energy. The main drawback is the lack of reliability of the system. The best solution now is to transfer certification and tracking the origin of energy to the blockchain.

Blockchain is one of the technologies that can stimulate global cooperation in saving CO2 emissions and fight against climate change. Blockchain is a data structure in which information is stored in the form of a series of cryptographically related blocks that are simultaneously distributed to all members of the network. The data stored in the blockchain is protected from unauthorized access. It is valuable to create a single source of truth for any kind of information.

Blockchain technology, combined with information flows such as the Internet of Things devices, can tap into new sources of information and automate traceability. Meanwhile, smart contracts offer an effective way to reward critical tasks such as emissions reduction checks and local adaptation measures.

Blockchain has potential for energy companies for various purposes. For example, E.ON and Enel trade electricity with this technology. Earlier, the largest energy storage manufacturer Sonnen used blockchain on the platform Hyperledger Fabric for operations within their energy community. Tracking, selling, and controlling with technology will bring the future of green energy closer.

Traditional business is no longer enough to withstand the looming climate crisis. Coordinated action against climate change requires better safe and trusted information. There are many changes in world markets, and one of them is green energy. More and more consumers want to buy products with low or zero carbon footprint. Companies that can confirm the source of the electricity used in the manufacture of the product gain a competitive advantage. Accordingly, companies need a transparent and reliable tracking system.
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