IoT-based renewable energy carbon credits prototype developed in DAO IPCI
When it comes to IoT protocol for renewables, reliability of data input is of critical importance. There are two components to issue grid connected renewable energy-based carbon credits: the amount of energy generated and grid emission factor, i.e. tons of carbon dioxide equivalent emitted in the grid per Megawatt.
If the data input is transparent, supported by the original documentation and by identification of the sources and cannot be altered or falsified, one can be sure that the results are actual reductions of GHG emissions.
Along with operational mechanism to issue carbon credits verified by independent entities, DAO IPCI is successfully testing IoT and automatic verification module to issue tokens representing renewable energy — based carbon credits. As the data is verified on public blockchain, it is transparent, reliable and cannot be falsified or used twice.
Initially, for demonstration purposes the Independent Entity uploads the original data to IPFS and transfers it to DAO IPCI DApp (video). The Independent Entity does not have to calculate the results “manually”. The amount of tokens representing resulting reductions is calculated automatically and the Issuer may issue equal amount of RE specific tokens. Once the algorithm is tested and reviewed by environmental auditors and the community, the operations would be performed in self-executing mode.
Chile EnergyLab Program would be the first to test the prototype, and the perspectives and demand for the service is virtually unlimited, for example, see “Bringing (solar) power to the people”.
Sustaining reliability and transparency on public blockchain while reducing transaction costs dramatically is very important for small-scale renewable energy facilities.
Similar modules would be deployed to issue carbon credits based on energy saving, and for renewable energy certificates. The users do not have to trust blindly the green standards, programs, registries, auditors, traders and brokers that approve, verify, register, issue and trade this type of carbon credits anymore. The process becomes transparent and “trustless”. Anyone can check the source, origination of the data, and choose whatever specific renewable energy credits he prefers.