United States-based clean energy development firm Clearway Energy Group is launching a pilot program for trading renewable energy credits on a blockchain, Bloomberg reported on June 28.
Per the report, Clearway Energy partnered with Ethereum (ETH)-based energy trading startup Power Ledger to jointly build a system for trading renewable energy certificates. Power Ledger reportedly told Bloomberg that initially the solution will be tested in Massachusetts, generating one to five megawatts of electricity, while the second test will take place in the Midwest and generate upwards of 20 megawatts.
The report further notes that the U.S. renewable energy certificates market is currently valued at over $3 billion and suggests that transaction costs can add another 3% to 10% to the certificates themselves. According to Bloomberg, Power Ledger Executive Chairman Jemma Green said that while digital certificate trading options exist, their costs add up when they are aggregated through brokers or bilateral contracts across state lines.
Lastly, Green reportedly also announced that the company plans for the tests to continue for several months, and the service is planned for expansion in early 2020.
As Cointelegraph reported earlier this month, Power Ledger will roll out its peer-to-peer (P2P) network in Graz, the second-largest city in Austria.
This post was originally published on www.cointelegraph.com