The U.S. based clean energy firm Clearway Energy Group is set to launch its pilot program for trading renewable energy credits on the blockchain, according to a recent report by Bloomberg.
According to the report, Clearway has partnered with Ethereum-based trading company Power Ledger in an effort to jointly build a system for trading renewable energy certificates.
Power Ledger is a fast growing tech startup that has developed a world-first blockchain enabled energy trading platform to make energy markets more efficient.
Purportedly, Power Ledger will test its solution in Massachusetts in which 1 to 5 megawatts of electricity will be generated. A second project is also set for the Midwest which could generate up to 20 megawatts.
To put the development in context, the report notes that the U.S. Renewable Energy Certificates (REC) is currently valued at $3 billion. A further 3-10% can also be added due to transaction costs to the certificates. Power Ledger Executive Chairman, Jemma Green said that while these trading options exist, their costs are enhanced when bilateral contracts and brokers are used. Green also inferred that Power Ledger plans to continue its testing for several months, with further expansion due to roll out in early 2020. This news follows similar developments where the firm is expected to implement its peer-to-peer (P2P) network in Austria’s second largest city, Graz.