China’s National Development and Reform Commission (NDRC) has given the country the green light to test the blockchain for trading green electricity. The organization, China’s highest planning agency, announced the news in an interview on its website. According to reports, this move is part of China’s goal to achieve carbon neutrality.
In the interview, an unnamed NDRC official announced that the agency has partnered with the National Energy Administration, related companies, experts and academics to determine that the conditions are appropriate for the creation of a green electricity market. The first condition is business demand for green electricity. According to the representative, companies are willing to pay extra for the environmental benefits of green electricity.
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The second condition is the readiness of the premises. Since some regions have researched green electricity, the representative stated that they were keen to take over the green electricity trade.
As for the technological aspect, the interviewee said that the blockchain can comprehensively record information about green electricity production, transactions and consumption, among other things. Using the blockchain would also ensure that all recorded information remains immutable.
The representative of NDRC also announced that the State Grid Corporation of China has already filed a patent application for a blockchain-based transaction system for green certificates.
China’s growing appetite for blockchain technology
Aside from testing the blockchain for green electricity trading, the State Grid Corporation of China also wants to introduce a blockchain-based data exchange and management platform after the merger with Beijing-based Wanglu Tech. According to reports, this platform will help State Grid use artificial intelligence (AI) to analyze data without compromising consumer privacy. The company sees itself well positioned to modernize its services and capabilities.
That news comes after the country posted its first carbon offset on AntChain, Ant Group’s enterprise blockchain platform. Tianjin released China’s first blockchain-based carbon offset certificate in July 2021. The publication explained why Tianjin used the blockchain and noted that the technology makes issuing, trading and auditing carbon offsets transparent and traceable.
Previously, the country first mentioned blockchain in March of this year in its 14th five-year plan. While China banned cryptocurrencies, it believes that their underlying technology can be vital to its digital economy. By leveraging the blockchain among other technologies, China believes it can grow its GDP and become a world leader.
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