White certificate trading: A dying concept or just making its debut? Part II: Challenges to trading white certificates

Aldrich, Elizabeth Lokey; Koerner, Cassandra

doi:10.1016/j.tej.2018.05.006

Cited by 7 publications

(9 citation statements)

References 3 publications

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“…Energy‐efficiency obligations are a widespread policy tool consisting in a mandate imposed on energy suppliers to achieve a certain amount of energy savings, typically certified ex ante using standardized engineering calculations (Aldrich & Koerner, 2018; Rosenow & Bayer, 2017). In some European countries, suppliers are allowed to meet a part of their obligation by purchasing “energy‐saving certificates,” also called “white certificates,” from other firms which have generated more savings than their obligation.…”

Section: Tradable Energy‐efficiency Obligationsmentioning

confidence: 99%

Tradable instruments to fight climate change: A disappointing outcome

Quirion

2021

WIREs Climate Change

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Various tradable instruments have been implemented for climate change mitigation: emission trading systems, tradable energy‐efficiency obligations, and tradable renewable energy quotas. Their track record has been disappointing so far; almost every emission trading has suffered from over‐allocation which has undermined its effectiveness; tradable energy‐efficiency obligations seem to have mostly co‐financed investments that would have taken place anyway; tradable renewable energy quotas suffer from several shortcomings compared to alternative support systems, that is, feed‐in tariffs and premiums. I discuss the reasons for these failures (especially too superficial a reading by policy makers of the work of researchers) and ways to improve the situation (including encouraging systematic syntheses of academic work). This article is categorized under: Climate Economics > Economics of Mitigation

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Section: Tradable Energy‐efficiency Obligationsmentioning

confidence: 99%

Tradable instruments to fight climate change: A disappointing outcome

Quirion

2021

WIREs Climate Change

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“…While RECs have helped improve transparency in the renewable energy markets, these improvements are still insufficient to meet the growing needs of renewable energy generators and buyers (Aldrich & Koerner, 2018b). For example, developers and buyers need to go through an expensive process that differs from market to market and depends on obsolete technological platforms to obtain proof of generation and green energy purchases.…”

Section: Blockchain Technologymentioning

confidence: 99%

A blockchain-based model for token renewable energy certificate offers

Marques

Gomes

Brandão

2023

Rev. contab. finanç.

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This article proposes an investment model for a renewable energy generator that allows it to earn the right to issue Renewable Energy Certificates (RECs) and sell them through quarterly sales auctions promoted by the blockchain. Blockchain technology can further promote the RECs market, as it enables tokenization and distribution of certificates. We did not find articles in the literature that analyze the decision to invest in decentralized autonomous organizations (DAOs) that have rules for issuing and trading RECs specified in smart contracts, which are executed and validated by the blockchain. This article contributes to the literature on blockchain technology applications in the renewable energy market by proposing issuing and selling RECs tokens through a DAO. The relevance of this research is that it shows that simple real option pricing methods can help decision-makers evaluate investment opportunities under uncertainty and flexibility. The tokenization and distribution of RECs via blockchain can promote transaction agility, reduce or eliminate bureaucracy in the means of payment, and increase the security and transparency of transactions. We propose a model for issuing and selling RECs in smart contracts. We assume that the generator has the flexibility to invest now or in one year to enter the platform, considering the energy generated in one year by a single typical 4MW wind turbine. Our model assumes that the price of the REC token follows an inverse demand function subject to stochastic shocks. The results contribute to the understanding of the performance dynamics of digital products under uncertainty and flexibility and show that distributed ledger technology (DLT) may be a viable alternative for renewable energy incentives.

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“…Embora as CERs tenham ajudado a aumentar a transparência nos mercados de energia renovável, tais melhorias ainda são insuficientes para atender às crescentes demandas das geradoras e dos compradores de energia renovável (Aldrich & Koerner, 2018b). Por exemplo, os desenvolvedores e compradores precisam passar por um dispendioso processo que difere de mercado para mercado e depende de plataformas tecnológicas obsoletas para obter a comprovação da geração e compra de energia verde.…”

Section: Tecnologia Blockchainunclassified

Um modelo baseado em blockchain para ofertas de certificados token de energia renovável

Marques

Gomes

Brandão

2023

Rev. contab. finanç.

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RESUMO Este artigo propõe um modelo de investimento para uma geradora de energia renovável que lhe permite ganhar o direito de emitir Certificados de Energia Renovável (CERs) e vendê-los por meio de leilões de vendas trimestrais promovidos por blockchain. A tecnologia blockchain pode promover ainda mais o mercado de CERs, pois permite a tokenização e distribuição de certificados. Não identificamos artigos na literatura que analisem a decisão de investir em organizações autônomas descentralizadas (OADs) que possuem regras para emissão e negociação de CERs especificadas em contratos inteligentes, que são executados e validados por blockchain. Este artigo contribui com a literatura sobre aplicações da tecnologia blockchain no mercado de energia renovável ao propor a emissão e venda de CERs do tipo token por meio de uma OAD. A relevância desta pesquisa recai sobre o fato de que ela mostra que métodos simples de precificação de opções reais podem ajudar os tomadores de decisão a avaliar oportunidades de investimento com incerteza e flexibilidade. A tokenização e distribuição de CERs via blockchain podem conferir agilidade às transações, reduzir ou eliminar a burocracia nos meios de pagamento e aumentar a segurança e transparência das transações. Propomos um modelo para emissão e venda de CERs em contratos inteligentes. Pressupomos que a geradora tem flexibilidade para investir agora ou dentro de um ano para adentrar a plataforma, considerando a energia gerada em um ano por uma única turbina eólica típica de 4 MW. Nosso modelo pressupõe que o preço do CER do tipo token adota uma função de demanda inversa sujeita a choques estocásticos. Os resultados contribuem para a compreensão da dinâmica de desempenho de produtos digitais com incerteza e flexibilidade e mostram que a tecnologia de ledger distribuído (TLD) pode ser uma alternativa viável para incentivos de energia renovável.

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White certificate trading: A dying concept or just making its debut? Part II: Challenges to trading white certificates

Cited by 7 publications

References 3 publications

Tradable instruments to fight climate change: A disappointing outcome

Tradable instruments to fight climate change: A disappointing outcome

A blockchain-based model for token renewable energy certificate offers

Um modelo baseado em blockchain para ofertas de certificados token de energia renovável

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