Decentralized Validation and Traceability of Renewable Energy Certificates Using Blockchain in Smart Grids

Abstract

India’s goal in COP26 to the United Nations Framework Convention on Climate Change (UNFCCC) to achieve non fossil fuel energy capacity of 500 GW by 2030 thereby reducing CO2 emission by 1 billion ton and finally achieving a Net- Zero Emission target by 2070 creates an imperative need of not only generating Green Energy but also creating an authenticated, validating, and incentivizing system for every amount of renewable energy generation. Blockchain being a trusted, unchallengeable and distributed database system provides a secure and certifiable platform for all energy transactions occurring in Smart Grid System. This paper provides a prototype for incorporation of blockchain for lifecycle management of Renewable Energy Certificates (RECs) in Smart Grid system supporting auditable tracking of origin, ownership and real time verification of all energy sources. Integration of Blockchain with IoTs enabled smart meters or other energy tracking devices help in real time data capturing from renewable energy producers and triggering of smart contracts on the blockchain. This proposed approach increases adoption of renewable energy, interoperability of producers, utilities regulators, and consumers and promote a consistent and proficient energy management system.