It is often considered the greatest ever solution for a problem that is yet to arise, the blockchain. And it is also brought up in discussions about hourly tracking of renewable energy. As we move towards granular GCs, do retailers really need the blockchain? At ENTRNCE, we don’t think so… here’s 5 reasons why.
1. Our clients aren’t demanding it
Up to now, our clients in The Netherlands, Germany, The Nordics and the UK aren’t demanding a blockchain solution. In fact, most retailers are still getting their heads around how hourly tracking can benefit their business. Finding out how increased levels of transparency can improve customer relations is higher on the priority list than the underlying technology.
2. Retailers already need to be compliant
Retailers do not need a digital ledger to provide their customers with accurate data. Of course, retailers & issuing bodies need to be compliant towards regulators, but one of the main checks there is allocation data from the market administrator. That settlement data is what we typically use in breaking down annual volumes into half hourly chunks of sourcing information.
3. Double counting is a problem
A blockchain ledger is often mentioned as a way of preventing double counting. But is this really hugely problematic in the market? Aren’t there simpler – and less costly – ways of preventing renewable certificates are claimed more than once? At ENTRNCE, we’ve designed algorithms that continuously monitor whether the procurement of renewable energy remains in line with the availability of renewable power.
4. Retailers aren’t issuing bodies
As we move towards a more complex ledger of renewable certificates, which may be handled within the settlement time frames of global markets, technology like the blockchain could become effective for issuing bodies. They provide the eventual stamp of approval, not utilities. Handling granular data and charging clients the correct price is a future energy supplier’s task. Certification & preventing double counting lies with issuing bodies.
5. Keep it simple
AT ENTRNCE, we have chosen for a simple set-up. We acknowledge that hourly tracking and 24/7 matching is only just starting to become relevant, as policy is changing and businesses are demanding more transparency. We offer our 24/7 service over three main pillars: sourcing (which renewable tech fits best regarding the hourly consumption of the end user), monitoring (how are renewable contracts performing?) and reporting (24/7 access to downloadable data and graphs).
If this triggers any questions, or you’d like to plan a 1-1 about or a demo about our B2B Matching service, click below.