Chile will register all renewable energy production on a blockchain

The National Electricity Coordinator of Chile will launch in March a platform on a blockchain to record all the production of renewable energy in the country. The body that supervises the operations of the electricity system will also monitor consumption and the issuance of sustainable energy certificates.

The proposal was in development during 2020 and would come into operation within two months, after an adaptation process that will start this January. This was announced by the electrical coordinator through a statement in which he explained that the initiative will allow participants in the electricity market to have accurate information, complete and reliable.

“This platform will allow for the certainty that the energy that the different agents are consuming is covered by renewable attributes, and will allow the different industries to demonstrate that the products they make were produced with renewable energies,” said Juan Carlos Olmedo, president of the agency, who added that Chile is committed to the so-called carbon neutrality by the year 2050.

Although no technical details of the project were offered, it is likely that the proposal is built on technology from Hyperledger of the Linux Foundation. The foregoing is deduced since in the past the coordinator has tested this type of solutions to certify operating costs, according to CriptoNoticias reported in November 2019.

The intention of the project is unify and develop a central registry that includes injections per megawatt-hour (MWh). This information must be provided by the various energy generating companies in the country.

Chile’s energy market

Unlike what happens in other Latin American nations, where there is a state company that generates, distributes and markets energy, in Chile there are multiple private companies that generate and distribute electricity. These companies can market directly to end customers such as large industrial companies or private residential customers, for example.

The coordinator’s task is to manage the entire market with the various participants that exist. In the case of the implementation of a platform for traceability, there must be a adequate planning so that the registry integrates as many companies as possible.

On this type of initiatives, CriptoNoticias consulted Ricardo Ruano, an Ecuadorian blockchain specialist based in Chile, who commented that the coordinator uses blockchains to advance his plans and new business models for 2021.

“What they are looking for is to centralize, even if it sounds contradictory, the traceability and management of information related to renewable energy. In fact, there are already companies that keep their own blockchain accounting for generation or commercialization. The objective is also to contribute to the reduction in the emission of carbon dioxide ”, Ruano pointed out.

CriptoNoticias reported in March of last year that one of these companies, Transelec, was using the so-called distributed ledger technology or blockchain, to certify the “green” energy generated and consumed in the country.