Singapore Power Group (SP Group) has launched a marketplace that will allow businesses to buy and sell renewable energy credits (REC).
RECs are essentially green energy sources, such as electricity generated by solar power.
The idea is that by purchasing these credits, companies who will able to wean off their reliance on fossil fuel sources and reduce their carbon footprint; allowing them to achieve their sustainability goals.
SP Group’s marketplace gathers RECs from across multiple geographies. It also supports different supply options including types of sellers and renewable energy sources.
Examples of green energy companies which have already signed up for the platform include solar developers Cleantech Solar Asia and LYS Energy Solutions.
Katoen Natie Singapore, a global chemical logistics company who will be launching Singapore’s largest single unit rooftop solar facility at a warehouse, has also come onboard as a REC seller.
City Developments Limited (CDL) and DBS Bank (DBS) are among the first few buyers in the marketplace.
The platform is powered by blockchain, which ensures that all transactions are transparent, secure and can be easily traced.
The launch of the SP REC marketplace is in line with Singapore’s low carbon targets, as part of its Paris COP-21 agreement.
“As Southeast Asia’s largest bank, we recognise the leadership role we can play in promoting sustainable development, including supporting innovations in renewable energy. SP Group’s blockchain REC platform will make it more economically effective for organisations and will catalyse the transition towards a low carbon economy,” said Mike Power, Chief Operating Officer of Technology and Operations, DBS.
“By having our 120 solar sites in Asia on board this platform, we can now allow consumers, who are unable to generate their own renewable energy, another reliable solution to achieve their clean energy goals,” said Raju Shukla, Executive Chairman, Cleantech Solar Asia.