dREC Creation on the Allinfra Climate Platform
One of Allinfra Climate’s goals is to give companies the ability to contribute to the development of renewable energy assets. One way to make this contribution and meet one’s sustainability goals is to purchase the environmental attributes associated with renewable energy from green energy producers. This can be done in a simple, reliable way through a digital renewable energy certificate (dREC™) on Allinfra Climate.
For an introduction to digital RECs, take a look at our post What is a dREC?
How do dRECs work on Allinfra Climate?
A dREC can be held, retired or traded, all within the Allinfra Climate’s REC trading platform. Whether you’re a buyer of dRECs looking to claim environmental attributes, or a green energy producer looking to monetise these attributes, Allinfra Climate gives you the power to execute transactions without intermediaries.
Digital renewable energy certificates created on our platform are permanently linked to underlying energy generation data. We’re able to achieve this through the use of blockchain technology — by creating a direct, immutable record linking the specific underlying asset and source data to the tradeable, digital environmental product sitting in your wallet.
How is a dREC created?
The dREC is a digital instrument, linked to data recorded from a device affixed to an asset. Let’s take the example of a smart meter affixed to a solar asset.
- Energy generation: The solar panel receives sunlight. Electricity generated is fed into the grid or consumed by the asset owner.
- Data recorded by smart meter: The smart meter affixed to the asset records generation data.
- Data collected and recorded by Allinfra’s service: Our services collect and record that data multiple times a day in a verifiable, auditable way.
- Data is packaged into Vintages: Upon a certain time period passing or generation milestone, e.g. 6 months, a series (“Vintage”) of dRECs™ is minted based on the generation data for that particular period.
- Digital token created: An ERC1155 standard is used to create assets on the Ethereum network. Allinfra’s dRECs of each Vintage are fungible amongst themselves, but not between Vintages.
- End-to-end traceability: A dREC of each Vintage contains all the relevant reference data for the underlying energy generation that resulted in that Vintage of dREC. The supply of each Vintage is fixed, with every dREC traceable from creation through to retirement.
See how we make it simple to read that data in this Allinfra Climate demo video.
In addition to the capturing of data and creation of digital renewable energy certificates, the Allinfra infrastructure is flexible and suitable for a range of use cases, with our services and tools able to be used for:
- Near real-time electricity production and consumption recording and matching.
- The creation of a variety of digital environmental financial products, from renewable energy certificates to emission reductions and associated derivatives related to a wide variety of asset types.
- The underlying data feed for other green financing products like green and sustainability-linked bonds and loans.
This post originally appeared on Allinfra’s website at https://allinfra.com/blog/post/13
Learn more about what Allinfra Climate can do for your organisation.