Published in

MDPI, Sustainability, 1(15), p. 258, 2022

DOI: 10.3390/su15010258

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Towards Energy Transition: Use of Blockchain in Renewable Certificates to Support Sustainability Commitments

Journal article published in 2022 by Orestis Delardas ORCID, Panagiotis Giannos ORCID
This paper is made freely available by the publisher.
This paper is made freely available by the publisher.

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Abstract

Corporations increasingly consider sustainability as an important goal and set net zero carbon emissions targets, consequently looking towards their electricity procurement to achieve them. Guarantees of Origin (GOs) are widely used as insurances for the renewability of electricity supplies and proofs of compliance to renewable standards; however, they suffer from structural problems. Their transactional history cannot distinguish between those traded among market actors and the ones that come directly from power plants, giving rise to transparency issues. Certificate trading dissuades producers from investing in an increase in renewable capacity resulting in lack of additionality while complex frameworks and administrative structures emerge to keep track of the vast network of GOs. These issues can be resolved through the introduction of blockchain networks which can provide transparency and help incentivise renewable investment while increasing automation and process simplification. This review explores the benefits and challenges of blockchain implementation for GOs and proposes a rethinking of how this scheme may fulfil the future needs of the energy sector.