Non-fungible tokens (NFTs) renewable energy is an estimated $22 billion market despite being derided as the post-Bitcoin, unsustainable digital gold rush. Hollywood athletes, sports stars and large brands like Coca-Cola, Gucci, Nike and Adidas are already carving out their market.
The cherry on top of NFTs was The Collins Dictionary’s Word of the Year 2021. In light of the adulation surrounding this subject, at the Green Energy Token‘s headquarters, we wanted to give you the most precise response to “Will NFTs also appear in the renewable energy sector?”.
Spoiler alert! They are already on the market.
NFTs: A brief introduction
NFT refers to Non-Fungible Tokens. It is the term used to denote digital assets that have distinctive features. From fashion items, digital art objects, collectables from the metaverse, and memorabilia, non-fungible is a technical term used to mean “unique” and “irreplaceable” in contrast to fungible assets such as money as well as Bitcoins (BTC). The primary distinction is simple: if you swap one dollar bill for a dollar bill with someone else, you’ll be left with the exact item. The same applies to BTC. However, you can trade in a real Picasso for a copy and regret it for the rest of your life.
Because of blockchain’s inherent capability to transfer assets without relying on traditional systems or third-party providers, NFTs are a digital method of ensuring the ownership of exclusive digital and physical assets.
NFTs for Renewable Energy Certification
Because of how the electric grid operates, proving that an electron entering a socket is generated from carbon-free sources is practically impossible. To address this problem, Energy Attribute Certificates (EACs) were introduced two decades ago to identify the electricity flow with distinct characteristics (attributes) and permit customers to select the most suitable energy source.
In essence, every EAC is an attribute in digital form that identifies and certifies for a megawatt hour of power the location of production that is a reference to the type of technology and location – as well as the month it was created. EACs are traded annually among market participants, up to the consumer, who can use them to demonstrate sustainable standards (e.g. Within 16 months of forming the EAC, we will have completed the CDP, GRI, and carbon-free energy benchmarks.
In the last year, however, there has been a rise in the number of actors in the energy industry who are beginning to realize the brutal truth about renewables if There is no breeze and no sunlight.
If monthly EACs have the only unique digital attribute –
Even though they have a low granularity and a time-frame of 16 months- which will eventually make them semi-fungible hourly EACs are assets that cannot be redeemed. Which also depends on the production mix at that particular hour.
Renewable energy certification policies and NFTs What are we doing now?
It’s true that NFTs exist in the energy sector. And they provide one of the strongest applications of these digital assets. RESpring, the Green Energy Token’s platform, is already able to allow the issue of hourly EACs that are based on Renewable Energy NFTson blockchain technology, thereby making a tradeable and immutable electronic attribute that can be inspected and used to record the continuous achievement of carbon-free electricity. These attributes, also known as Granular Certificates (GCs) by the EnergyTag initiative. Have been tested and utilized by our customers, including Microsoft.
It sounds very promising. However, where do the politicians stand about re-evaluating the current energy certification systems? At the moment, neither the policymakers nor the official reporting standards. Such as GHG Protocol – are considering the possibility of GCs informally. But there is a definite belief that 2022 could be the year of GCs. As 24/7 Carbon-free Energy is gaining momentum globally. Granular renewable energy NFTs will be an indispensable instrument for certification, trade and, last but not least, transparency. During the last edition of RE-Source, Henrik Dam from the European Commission (Energy DG) recently defined GCs as a potentially important instrument in the near future.
We welcome you to the new age of energy-related revolutions – the NFTs for Renewable Energy Certification have become an option, and Green Energy Token is already proving this with the assistance of its respected partners.
If you’d like to know more about how you, as an energy purchaser and how can earn NFT through an official certification of the source for your energy source on an hourly schedule, don’t hesitate to contact us to request a demonstration for free.
FAQ
1. What are NFTs for renewable energy certification?
NFTs, or Non-Fungible Tokens, are unique digital assets representing ownership or proof of authenticity for specific items or certificates. The generation and consumption of renewable energy from various sources like solar, wind, hydro, and others. These NFTs help establish a transparent and immutable record of renewable energy production and usage.
2. How do NFTs for renewable energy certification work?
NFTs for renewable energy certification are created and stored on blockchain networks like Ethereum. Each token is associated with a specific quantity of renewable energy generated or consumed. The NFT’s metadata includes crucial information such as the energy source, location, date of generation, and environmental impact.
3. What problem do NFTs solve in the renewable energy industry?
NFTs bring much-needed transparency and trust to the renewable energy sector. They address concerns related to greenwashing and false claims of using renewable energy by providing an immutable. And auditable record of each unit of energy produced or consumed. NFTs help consumers and businesses make informed choices about supporting sustainable energy practices. And allow renewable energy producers to prove their contribution to a greener future.
4. How can NFTs for renewable energy certification benefit renewable energy producers?
NFTs offer renewable energy producers an innovative way to monetize their eco-friendly efforts. By tokenizing their energy production, producers can sell NFTs to consumers and businesses. Seeking to offset their carbon footprint or demonstrate environmental responsibility. It provides an additional revenue stream for renewable energy projects and encourages further investment in the sector.
5. What are the advantages for consumers and businesses using NFTs for renewable energy certification?
For consumers and businesses, NFTs directly connect to the renewable energy source they support. By purchasing and holding NFTs, they can confidently support sustainable practices and reduce their environmental impact. Additionally, owning these NFTs may prove their commitment to corporate social responsibility and environmental sustainability.
