Japan's 2nd-Largest Utility Trials Blockchain for Renewable Energy Credits

The second-largest power utility in Japan is extending its trial of a blockchain-powered system for transacting renewable energy credits.

According to a press release shared with Cointelegraph on Dec. 9, the Kansai Electric Power Co Inc is extending its trial of a blockchain-enabled renewable energy trading platform developed by Australian tech firm Power Ledger.

Decentralizing, decarbonizingIn 2018, Japan was the world's fifth-largest consumer of electricity, yet produced only 17.5% of its energy from renewable sources.

These provide energy retailers with proof that the portion of energy under the certificate is generated from renewable energy sources.

They can also be used to assess which power plants are contributing the most environmental value in order to encourage investment in green industries and can be traded, similarly to other forms of renewable energy certificates.

A local report from EKOenergy in March claimed that existing energy certificates and carbon credit systems in Japan remained "Complicated and fragmented at best."

An initial successful trial between KEPCO and power Ledger had reportedly demonstrated that allowing energy producers to trade their surplus energy via the platform was an efficient way for them to monetize their renewable energy investments.

This ostensibly helps to provide consumers with lower-cost green energy sources.

In June of this year, South Korea's largest power provider, Korea Electric Power Corporation, signed a contract with two domestic power suppliers to establish a blockchain-powered system for transacting RECs.

The corporation had also announced in fall 2018 that it would be using blockchain and other innovative energy solutions to develop its next-generation microgrid.