Concordium, Google, and Energinet Collaborate to Improve Green Energy Tracking

Concordium Blockchain, in collaboration with Google and the Danish transmission system operator Energinet, has launched a pilot project aimed at revolutionizing the green energy landscape in Europe. 

The central aim of this partnership is to boost transparency in renewable energy consumption by refining the process surrounding Renewable Energy Certificates (RECs). In Europe, RECs are typically issued annually to verify and track renewable energy production and consumption. While these certificates offer a general assurance about the sourcing of renewable energy, their annual resolution presents significant challenges when it comes to real-time tracking.

A key issue arises when consumers buy certificates to cover their annual renewable energy usage. This does not necessarily align with the actual timing of energy generation and consumption throughout the day. Because renewable energy sources like solar and wind are subject to fluctuations due to weather and time of day, there is often a misalignment. Consequently, it becomes challenging to prove that the energy consumed at any particular moment is genuinely green.

To counter this problem, Concordium and its partners are proposing a shift from an annual to an hourly or 15-minute resolution for these certificates. While this approach introduces significant data and transaction challenges, it is vital for enhancing transparency and fighting greenwashing. 

Concordium’s blockchain is central to this effort. It is a proof-of-stake Layer 1 blockchain with a strong focus on privacy and zero-knowledge proofs. 

In the pilot project, energy certificates will be issued for both production and consumption, with ownership and claims tracked using blockchain. This approach helps reduce costs while ensuring data integrity. Zero-knowledge proofs will safeguard sensitive data, enabling secure and private verification of claims. 

Consumers will be able to claim specific types of renewable energy, such as wind or solar, by segmenting certificates, and all claims will be recorded immutably on the blockchain. Independent auditors will be able to verify these claims, ensuring credibility and preventing fraud.

A key component of this initiative is Energinet’s Project Origin and its Energy Track & Trace platform. This open-source initiative aims to create a public federated network, allowing anyone to validate the origin of their electricity. 

If the pilot proves successful, major corporations like Google may quickly adopt this platform to demonstrate their growing use of green energy. This could help them meet increasingly strict regulatory requirements while reinforcing their commitment to sustainability and environmental responsibility.