FlexiDAO, FlexiDAO is one of the leading blockchain players in the energy space, tracking more than 3TWh of renewable energy per year, has collaborated with the UNDP CEDRO Project in Lebanon to examine the first unbundled and voluntary market for renewable energy certificates (REC) for Lebanon by leveraging blockchain technology. FlexiDAO have showcased its software RESpring for four implemented solar PV pilot plants in Lebanon. The objective of this partnership is to showcase the technical feasibility and market interest of establishing this certificate marketplace in order to support the energy transition in Lebanon.
A renewable energy certification system is an essential step to prove commitment toward a cleaner energy system, certify claims and re-direct incentives. Energy Attribute Certificates (EACs) embed the environmental attributes of renewable energy to avoid GHG emissions by assessing that energy was produced from renewable sources.
Blockchain can enhance the system by providing trust, traceability, and transparency. This is possible through a digital process called “tokenization of electricity” for which units of electricity become digital goods/assets and allow automatic certificate generation (timestamping), transfers and ownership tracking based on cryptographic proof.
In fact, blockchain-based applications for the energy sector, every kWh can be seen as a unique token generated at a given time, location and with a set of attributes (asset type, age of the plant, owner, transfer history, etc.). The decentralized nature of blockchain allows to register multiple renewable generation assets to be allocated for each consumer. The project aims to result in an efficient, transparent and digital certification system for tracking renewable energy in Lebanon. The outcomes will be to provide a complete and confiable overview of energy production and consumption from different renewable energy sources of any size with time-related information, geographical location and associate energy certificates.
Blockchain can allow to track both time and location of production, this is essential since renewable energy production is possible only under specific weather conditions and geographic location, depending on the moment of the day and on the season. Furthermore, depending on the time and location of production, energy can have a different impact on the local grid. Blockchain is therefore able to track these two important components and add an essential layer of trust in the certification scheme.
Furthermore, the value of the project will also reside in the creation of a strong baseline of stakeholder cooperation and feedback to assure an efficient real-time tracking of green energy sourcing and setting the foundations for the full project lifecycle. Finally, the project will allow us to observe risks & costs to assess viability for a potential large-scale implementation of the project in all the country. This would support Lebanon in its quest to transform its power sector and meet its Nationally Determined Contributions under the Paris Climate Change Agreement.
Simone Accornero, CEO and co-founder of FlexiDAO indicated that “blockchain technology is used to digitally stamp in real-time the provenance of the electricity and uniquely assign it to consumers. It creates a layer of trust, avoids double-counting and offers full auditability to any party, acting as a single source of truth”
The project employs FlexiDAO’s white-label application “RESpring”. It connects to the generation asset to gather validated generation data and uploads it into the blockchain, creating a unique digital asset (or certificate token) each time it registers a match of the green energy produced and consumed. This token is then transferred to consumers based on a set of rules defined by smart contracts.
Today FlexiDAO is one of the leading blockchain players in the energy space, working in 9 countries with 7 utilities and tracking 3 TWh of renewable energy per year.