Digital Traceability in Renewable Energy: A Blockchain Use Case

The countries that are party to the Paris Agreement of 2015 announced their national contributions for the short and long term to achieve the temperature target of 1.5°C set by the agreement. In the Glasgow Climate Pact signed at the end of the 26th Conference of the Parties of the United Nations Framework Convention on Climate Change, which was held in Scotland in 2021, it was stated that to achieve the 1.5°C temperature target in the Paris Agreement, global carbon dioxide emissions should be reduced by 45% by 2030 compared to 2010, in addition to achieving the net zero emission target by the middle of the century. The countries party to the Glasgow Climate Convention are invited to implement policies that support the development, use, and spread of technologies facilitating the transition to a low-emission energy system to realize the emission reduction targets. Having revealed a need for innovative and alternative models in the energy field, these climate change policy targets make it mandatory to rapidly increase the share of renewable energy technologies in the energy ecosystem.

Apart from the targets announced nationally, many global businesses are inclined today to commit themselves to meet their energy consumption from renewable energy sources. Renewable energy certificates are one of the methods businesses use to meet their demand for renewable energy. Blockchain technology, presented as an emerging option with a digital traceability aspect, is a recent addition to the existing renewable energy supply solutions available, thanks to its transparent structure that can provide peer-to-peer services. The competitive nature of the current business world, which is unsurprisingly shaped mainly by technological development and change, places renewable energy supply methods and related alternative solutions based on blockchain technology on the agenda of the companies that seek not to lag in the fierce competition.

This study examines alternative solutions developed by leading global companies in renewable energy, especially the use of blockchain within digital traceability. In that respect transition to a 24/7 approach in renewable energy and efforts of global companies towards realizing the goal of 24/7 renewable energy are discussed. Accordingly, the use of new software featuring blockchain technology by an energy sector company in Turkey has been examined, accompanied by an evaluation of the contribution made by this application to the green economy in terms of a 24/7 renewable energy approach. As a result, it is thought that this innovative solution for the energy sector will play an accelerating role in the companies achieving their carbon neutrality targets.

Keywords: Renewable Energy, Energy Attribute Certificate, Blockchain

JEL Classification : O20 , Q55 , Q56

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Sustainability, Policy, and Global Impact: A Comparative Analysis

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Digital Traceability in Renewable Energy: A Blockchain Use Case

References

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