Energy Web Foundation (EWF), a global non-profit that uses blockchain and decentralized technologies for renewable electricity, has progressed several deals around the globe in the last few weeks.
Two weeks ago, energy intelligence company Fohat announced its partnership with EWF and AES Tietê, one of Brazil’s largest electricity providers, to create a blockchain renewable energy trading platform. This collaboration will provide AES with an organized over-the-counter energy trading platform and leverage EWF’s blockchain solutions, to issue international renewable energy certificates (I-RECs).
An I-REC is an Energy Attribute Certificate, representing one megawatt hour of renewably sourced electricity. This internationally recognized certification allows electricity supply firms and end-users to ‘prove’ the renewable origin of the generated electricity.
Brazil is one of the largest issuers of I-RECs in the world, but its deregulated Free Energy Market involves significant friction. The partnership will help open up access to Brazil’s Free Energy Market, which accounts for 30% of electricity consumption. That’s in part because ETF’s blockchain solution enhances transparency, data reliability and energy trading scalability.
Ten days ago, Energy web announced a partnership with the Uruguay national grid operator UTE to develop blockchain-based solutions to help UTE transition to clean energy. UTE delivers to over 1.5 million clients in Uruguay, with a goal of reaching half of its clients with smart meters by 2021. EWF’s decentralized software solutions will help UTE balance its power grids using distributed energy resources and to trace clean energy and carbon emissions.
As previously reported, EWF and electricity market copay Mercados Electricos (MERELEC) have completed Phase one of building their I-REC trading marketplace for Central America.
Last but not least, on 23 July 2020, EWF and energy innovation firm Foton Energy launched their I-REC renewable energy trading platform in Turkey. This pilot will allow renewable energy providers to use the platform to register I-REC assets and to sell I-RECs to buyers. To access accurate renewable energy generation data, the solution already integrates with the open Energy Exchange Istanbul (EXIST), Turkey’s main energy market operator.
Turkey has seen a significant acceleration in the privatization of its energy market, with more than 34 GW of renewable energy added, just over 20% GW of which stems from distributed energy resources. The privatization of the Turkish energy market has now allowed for over 100 energy providers competing to deliver energy.
The I-REC market itself has seen significant growth in just six years since the introduction of the international standard, starting with just three countries (China, Taiwan, and Turkey) and only a few registered power plants in 2014, to 34 I-REC authorized countries in 2020.
From less than seven million I-RECs issued in 2017, it grew to 14 million in 2018 and 17.6 million in 2019. In that year, China accounted for 47.3% down from 51.4% in 2018. During the same period, Brazil’s market share almost doubled to 15%.