China has officially announced its intention to implement blockchain technology for the certification of green electricity production and consumption. This initiative, outlined in a proposal from the State Council, aims to enhance the tracking of renewable energy usage across the country.
The proposed framework seeks to improve the traceability of green electricity usage while exploring the integration of green certificates into nationwide carbon emission accounting. By employing blockchain, the government intends to create a robust certification process that covers both the generation and consumption of green electricity, marking a significant step toward increased transparency in China”s energy sector.
This blockchain-driven strategy is part of broader reforms in the electricity market that are scheduled to unfold by 2035. The initiative aims to establish mechanisms for green certificate consumption that combine both mandatory and voluntary requirements, ensuring data integrity throughout the certification process.
Under this new system, entities involved in power generation and consumption will be able to enter into medium and long-term agreements for the purchase of green certificates. The Chinese government envisions a market-based trading environment where about 70% of total electricity consumption will be traded through market mechanisms by 2030.
The unified national electricity market is designed to encompass all power sources and consumers, facilitating inter-provincial and regional trading. With a full operational spot market based on unified rules and technical standards, the framework promotes various trading models for green electricity.
In a significant upgrade to the existing green certificate system, these certificates will serve as credentials for identifying renewable energy electricity. The government plans to enhance price monitoring to maintain reasonable pricing levels for green certificates while expanding the scale of green electricity consumption among participating entities.
Moreover, the proposal emphasizes the importance of developing a certification mechanism for green electricity consumption. Advanced technologies, including blockchain, will be utilized to ensure full verification of the production and consumption chains. The government is also actively investigating feasible methods to incorporate green certificates into carbon emission accounting.
On an international front, the State Council document underscores the need to strengthen global communication regarding the application of green certificates. China aims to elevate its domestic green electricity consumption standards to become international benchmarks, potentially influencing global practices in renewable energy tracking.
The framework also establishes capacity markets to support reliable power sources, ensuring a diverse and stable energy supply. As part of this initiative, coal-fired power, pumped storage, and new energy storage systems will be included in capacity pricing mechanisms. The government is committed to facilitating equal participation of various business entities in the electricity market.
As the implementation deadline approaches, market participants eagerly await further details of this blockchain-powered green electricity certification system, reflecting China”s dedication to enhancing transparency in renewable energy.
