Blockchain renewables certification scheme launched in Uruguay

Uruguay grid operator UTE and the Ministry of Industry, Energy and Mining have developed a renewable energy certification scheme.

The application is built on Energy Web’s decentralised operating system and is intended to enable companies to obtain certificates detailing the origin and source of renewable energies that they are purchasing.

With this development UTE and the ministry are among the leaders in developing blockchain application in the energy sector in Latin America and the first of which we are aware to advance this use case.

Moreover, it is one of the first large scale blockchain applications to be developed in Uruguay.

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The scheme is available to large and medium-size energy users immediately, with the first certificates expected to be issued in March.xx

For others on non-residential rates as well as for self-generators of renewables, including the certification of renewable energy generated but not injected into the network, it will enabled from June 2022.

Longer term, the plan is to extend the scheme to all residential customers.

The development of the scheme follows the major growth of renewables in Uruguay over the past decade and the desire to implement an internationally recognised standard to its production.

It is expected to support the decarbonisation of the various sectors of the economy such as transport and industry and could be key to advancing the development of green hydrogen in Uruguay.

The ministry was responsible for establishing the conditions for the issuance of the certificates, while UTE was charged with the development of the technology platform.

The system cross-references generation supply and demand on an hourly basis and the certificates are issued monthly. Once emitted, they are automatically transferred to the acquirer of the renewable energy, whether a distributor or large customer.

“We understand that it is very valuable for a consumer to be able to certify that their energy or a certain fraction it is renewable,” said industry, energy and mining minister Omar Paganini at a September 2021 presentation on the scheme.

“Being able to certify that a certain product comes from energy uses that do not generate carbon emissions or greenhouse gases is one more value that the market is demanding more and more.”

Renewable energy certification is considered a key use case for blockchain with the same principle also now being introduced for green hydrogen as well as for other tracking use cases, for example in supply chains.