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Coming soon: Households can buy ‘green credits’ to ensure their source of energy is renewable

SINGAPORE — From the middle of next year, households can ensure that their energy is derived from green sources by buying "green credits" through a blockchain-powered online platform set up by power grid operator SP Group.

Coming soon: Households can buy ‘green credits’ to ensure their source of energy is renewable

Typically, 1 MWh of electricity can power a four-room Housing and Development Board flat for about 2.5 months, while 1 kWh can power a refrigerator for about a day.

SINGAPORE — From the middle of next year, households can ensure that their energy is derived from green sources by buying "green credits" through a blockchain-powered online platform set up by power grid operator SP Group.

Calling it a world's first, SP Group launched the digital marketplace for renewable energy certificates (RECs) on Monday (Oct 29).

The RECs, or “green credits”, contain information on the source of the renewable energy, how much energy is being generated, and exported to the grid, and must be purchased at an additional cost.

Currently open only to businesses, the sale and purchase of RECs will be made available to general consumers from the mid-2019.

While the trading of RECs is not new, it used to be done through a manual process, where the sales team of energy producers had to secure individual contracts with the buyers.

With its new online platform, SP Group said buyers will be automatically matched with sellers around the globe, based on their preferences.

This new platform will also reduce the minimum trading volume from 1 megawatt-hour (MWh) to 1 kilowatt-hour (kWh), which will allow smaller producers, even households with the capacity to produce their own green energy, to participate in the buying and selling of RECs.

Typically, 1 MWh of electricity can power a four-room Housing and Development Board flat for about 2.5 months, while 1 kWh can power a refrigerator for about a day.

“This helps big and small organisations to achieve their green targets and strengthens cross-border sustainability efforts with SP’s international reach. It contributes to Singapore’s low carbon targets, as part of its Paris COP-21 agreement,” said SP Group in a media statement on Monday, referring to the Paris climate change deal in 2015.

The online platform allows both local and international organisations to trade in RECs, and also supports the selling of local, regional and international RECs. It also supports different suppliers of renewable energy including types of sellers and renewable energy sources, SP Group said.

“The unique attributes of blockchain technology will ensure the security, integrity and traceability of each REC transaction”, it added in the statement.

Among its first REC buyers were two local companies: property developer City Developments and lender DBS Bank.

Solar developers Cleantech Solar Asia and LYS Energy Solutions have signed a collaboration with SP to place their solar assets on the marketplace for sale of RECs.

Chemical logistics company Katoen Natie Singapore, which will be launching Singapore’s largest single unit rooftop solar facility at a warehouse, has also come onboard as a REC seller, SP Group said.

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