China’s National Development and Reform Commission (NDRC) has approved the preliminary process of green power trading using blockchain technology, according to an announcement made on Tuesday.
The NDRC has given approval to two Chinese state-owned transmission companies, State Grid Corporation of China and China Southern Power Grid Co., Ltd. to launch their pilot program of direct trading of green power between corporate consumers and renewable energy generators.
The committee stated that blockchain is one of the technologies that can be introduced into green power transactions because it can “safely record information on green power generation, transactions, and consumption.”
The People’s Daily reported on the 7th that the companies will establish two exchange centers, one in Beijing and one in Guangzhou. The exchange centers will be tasked with drafting the trading rules along with improving the trading platform.
According to the announcement, the State Grid Corporation of China, the world’s largest transmission company, has applied for a patent for blockchain-based certificates of green power transactions.
With the launch of the pilot program, China aims to achieve its CO2 reduction targets by promoting the use of green energy as well as offering a Chinese solution to global energy problems.
The country aims to peak its carbon dioxide emissions before 2030 and become a carbon-neutral country by 2060.