#How is China Integrating Blockchain for Green Electricity?
China’s State Council is actively working towards enhancing the verification of green electricity by integrating blockchain technology. This initiative aims to facilitate the full-chain verification of renewable energy throughout its production and consumption cycle. This approach is part of a broader strategy to create a unified national power market by the year 2030, influencing both sustainability efforts and market dynamics.
The directive highlights the importance of utilizing distributed ledger systems for full-chain certification of renewable energy. This will significantly improve the traceability of green energy usage, ensuring that all transactions and certifications are transparent and securely documented. In tandem, officials are considering methods to incorporate green certificates into carbon emission accounting systems, thereby strengthening the correlation between clean energy use and achieved climate goals.
By the end of the decade, the government aims for market-based electricity transactions to comprise approximately 70% of total consumption. This shift indicates a move towards a more liberalized market where all sources of power and most users are encouraged to participate directly in trading activities. By 2027, it is anticipated that spot markets will be fully operational, offering dynamic pricing and trading opportunities.
This initiative builds upon existing frameworks that recognize both the generation and use of renewable energy through green certificates. Plans are in place to establish both mandatory and voluntary purchasing mechanisms for these certificates. Authorities will also monitor pricing to ensure it remains accessible and fair for all participants in the market.
Additionally, the State Council has laid out a framework for further market integration. This includes the introduction of standardized trading rules across different provinces and an eventual consolidation of regional power exchanges. By 2035, it is expected that electricity resource allocation will be optimized throughout the nation, allowing price signals to accurately reflect the environmental and capacity values of energy consumption.