Blockchain technology brings us closer to a world of 100% renewable energy

Blockchain technology brings us closer to a world of 100% renewable energy

The concepts of zero carbon energy or 24/7 renewable energy supply contracts have recently gained relevance, not only due to the pressure to decarbonize our economies and mitigate the effects of climate change, but also due to the pressure of the consumers themselves who demand that the products and services they receive have an environmental seal where it can be verified that these products are manufactured or that the services are delivered with a minimum impact on the environment through sustainable energy.

Unfortunately, the operation of the electrical system is quite complex and it is not always possible to know exactly if the electricity that we are consuming at any given time comes from renewable sources or not. All electrons are the same and cannot be distinguished if they have been produced by a coal plant or by a solar panel. For this reason, different accounting methods for “green energy” have been created.

The good news is that technologies have recently been developed that make it easier to account for renewable energy consumption. Everyone will have heard of blockchain technology or blockchain as it is called in English, which is the basis of the already well-known cryptocurrencies. But the applications of this technology go far beyond economic transactions and there really is great potential in the energy sector to use the characteristics of this technology such as transparency, security and decentralization capacity.

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We are also seeing how, especially in private sector companies, interest is growing in ensuring a certified supply of electricity with renewable electricity and there are already successful experiences in this aspect in our region. Companies are not only doing it for environmental, social and governance (ESG) policies, but also for economic and energy security reasons, since as we know in our region solar and wind energy is generated at the most competitive costs worldwide.

These experiences of private companies constitute a magnificent example for the public sector, which in many cases is a large consumer of electricity, therefore, ensuring through these new technologies that the supply is truly renewable is a great opportunity to be able to generate trust and monitor a country’s clean energy and carbon emission targets.

The fight against climate change is one of the priorities for the IDB Group under its Vision 2025, the roadmap to achieve sustainable and inclusive growth. This is why the Energy Division is focused on bringing cutting-edge issues related to the digitization of the sector to the region. Within these activities we will be presenting the current trends in the implementation of technologies to ensure a supply of renewable energy 24 hours a day, 7 days a week, through a webinar on Thursday, July 21. This webinar is one of the first activities related to the Challenge that we want to organize together with our innovation laboratory, IDB Lab, on blockchain applications in the energy sector in September 2022 and of which we will be announcing more details very soon.

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We hope that these knowledge activities will be useful for the entire energy sector and that we can increasingly find and promote technologies that benefit the innovation ecosystem in this sector in Latin America and the Caribbean.

To join the free webinar (to be held in zoom, with English – Spanish interpretation), please access the following link.

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