Trading of renewable-energy credits (RECs) to encourage clean power generation isn't a new idea, but in Singapore there's a new spin involving blockchain technology. The hope is that by allowing the buying and selling of these credits on a public, visible platform, compliance costs can be reduced and access to REC markets will increase for smaller energy users and producers. But while greater transparency and less need to verify information are positive steps, the goal is to take the trading beyond Singapore's borders
"A consumer in Singapore who wishes to buy green energy can now, through blockchain-powered REC trading, purchase a REC from a hydro-producer based in Laos," Wong Kim Yin, the CEO of Asian-energy powerhouse SP Group, told CNBC. "This reduces the cost, reduces the friction in the market."
In the meantime, Singapore might see greater access to renewable energy than the island nation can itself support. With little available land, both wind and solar are constrained in Singapore. Lars Kvale, who works with renewable energy credits told CNBC, "There is significant demand for renewable energy in Singapore but a limited amount of renewable energy capacity to meet all of the demand." (Source: CNBC)