Decentralized and permission-less green energy certificates with GECKO

Abstract

A growing demand in sustainable energy harvested from renewable resources, such as wind or solar power, leads to new challenges in the electricity grid, which in future is also referred to as the smart grid. This also reflects in a more decentralized and diverse energy market. In such a market, prices do not only depend on production and demand, but also the source of energy production influences the price. In this paper, we present a decentralized and permission-less system for issuing, receiving and verifying Green Energy Certificates for kWh Ownership (GECKO) similar to the established Renewable Energy Certificates or Green Tags. These certificates allow to create a market for renewable energy. While the established system is designed for the wholesale market and does not allow for decentralized and permission-less verification, the proposed system is built on a blockchain-based approach and allows for the management and transfer of certificates. In our exemplary use case, Distribution System Operators (DSO) act as certification authority for privately or community owned power plants in regional energy markets. Customers can easily verify the integrity of such certificates without relying on a trusted third party or escrow service.