Environmental value trading functionality / renewable energy power trading functionality
In addition to trading electricity, we also plan to leverage the DGP as a platform for environmental value trading. Further, the power sources that the platform can handle will include more than just traditional stable sources such as fossil fuel-based thermoelectric power. Rather, we will aim to leverage the strengths of the digital grid’s electricity identification functionality in order to identify and handle renewable energy sources, as well.
Environmental Value Trading Functionality
Since the selection of our proposal for a Blockchain-enabled Renewable Energy Carbon Reduction Pilot Project by the Ministry of the Environment (MOE), we have been working to build a digital grid-based B2B system for trading and settling the Carbon REduction Value (CREV) of self-consumed renewable energy. Tradable environmental value comes in a number of forms, including Renewable Energy Certificates (REG), Tradable Green Certificates (TGC), and J-Credits. However, we are aiming to realize a scheme for converting accurately-measured amounts of self-consumed renewable energy into units called Carbon REduction Value, or CREVs, and utilizing Blockchain technology to sell them to companies that wish to procure environmental value.
Environmental Value (CREV) Trading System Conceptualized in Our MOE Project
Renewable Energy Power Trading Functionality
The emergence of initiatives such as RE100 has increased demand for the ability to choose to purchase electricity output not just from traditional stable power sources but also from renewable energy sources when trading electricity. We aim to leverage one of the key strengths of digital grid technology, namely its ability to identify electricity, in order to provide people with a means to procure power from traditional stable power sources and from renewable sources in whatever ratio they desire.
Install DGCs, Identify Renewable Energy Power Sources, and Procure Electricity Through the DGP
We are planning to have three different types of renewable energy power sources from which electricity can be procured over the Digital Grid Platform: (1) FIT renewable energy power sources; (2) post-FIT renewable energy power sources; and (3) non-FIT renewable energy power sources. We have started to develop a method to handle these power sources, together with traditional stable electricity sources,
FIT Renewable Energy Power SourcesDue to the introduction of a feed-in-tariff (a system in which electricity is bought at a fixed price) in 2012, FIT renewable energy, centering on megawatt-class solar farms, has been broadly introduced as an energy source. We are studying methods to equip these renewable energy power sources with DGCs that will allow them to be identified and utilized together with tradable environmental value, such as non-fossil fuel power sources value.
Post-FIT Renewable Energy Power SourcesRenewable energy power sources that have reached the end of FIT eligibility are starting to appear on the market. These include domestic solar power systems that have reached the end of their 10-year feed-in tariff eligibility period. It also includes large renewable energy power sources built before the introduction of the feed-in tariff that were retroactively certified. We are studying methods to equip power sources without a clear source for feed-in tariffs with DGCs that will allow them to be identified and traded as important sources of electricity that include renewable energy value.
Non-FIT Renewable Energy Power SourcesThese renewable power sources which include hydroelectric, geothermal, waste-to-energy plants, and so on that were never eligible for the feed-in tariff to begin with. Many of these sources are old but provide large amounts of stable power, garnering them strong attention for their high utility value. We are studying ways to integrate them into the DGP along with the renewable energy value (CREV) of their self-consumed energy.