Energy Web Foundation (EWF), a global non-profit organization that uses blockchain and decentralized technologies for renewable electricity, has entered into several deals around the world in recent weeks.
Two weeks ago, the 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 exchange platform. This collaboration will provide AES with an organized OTC energy exchange 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 electricity from renewable sources. This internationally recognized certification enables electricity supply companies and end users to ‘to prove’ the renewable origin of the electricity produced.
Brazil is one of the largest issuers of I-REC in the world, but its deregulated free energy market causes significant friction. The partnership will help open access to Brazil’s free energy market, which accounts for 30% of electricity consumption. This is in part because ETF’s blockchain solution improves transparency, data reliability and the scalability of energy trading.
Ten days ago, Energy Web announcement a partnership with the Uruguayan national network manager UTE develop blockchain-based solutions to help UTE in the transition to clean energy. UTE delivers to over 1.5 million customers in Uruguay, with the goal of reaching half of its customers with smart meters by 2021. EWF’s decentralized software solutions will help UTE balance its power grids by using distributed energy resources and tracking clean energy and carbon emissions.
As previously reported, EWF and the electricity market co-payer Mercados Electricos (MERELEC) have completed the first phase of building their I-REC trading market for Central America.
Last but not least, on July 23, 2020, EWF and the energy innovation firm Foton energy launched its 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 sell I-RECs to buyers. To access precise data on renewable energy production, the solution is already integrated with the open Istanbul Energy Exchange (EXIST), the main operator of the energy market in Turkey.
Turkey has seen a significant acceleration in the privatization of its energy market, with more than 34 GW of renewable energy added, of which just over 20% GW comes from distributed energy resources. The privatization of the Turkish energy market has now enabled more than 100 energy suppliers to compete to supply energy.
The I-REC market itself has seen significant growth in just six years since the international standard was introduced, starting with just three countries (China, Taiwan, and Turkey) and just a few power plants registered in 2014, to 34 I-REC authorized countries in 2020.
Less than seven million I-RECs issued in 2017, it rose to 14 million in 2018 and 17.6 million in 2019. That year, China accounted for 47.3%, up from 51.4% in 2018. During the same period, Brazil’s market share nearly doubled to 15%.