We announced an official partnership with global nonprofit Energy Web to support development of its blockchain-based renewable energy trading platform. We had previously announced intent to build its solution on the Energy Web Chain. This platform is being developed for AES Tietê, which has operated in Brazil for nearly 20 years and is one of the country’s largest electricity generation companies.
Energy Web will support Fohat with making use of Energy Web Origin, which is a portfolio of open-source software development toolkits to help companies build digital solutions for renewable energy procurement markets, to integrate Fohat–AES Tietê platform with the issuance, tracking, and reporting of International Renewable Energy Certificates (I-RECs) in the Brazilian market based on its existing collaboration with The I-REC Standard.
This support will help Fohat deliver a solution that helps disintermediate renewable energy markets and help renewable energy buyers achieve their proof of impact procurement needs while simultaneously purchase electric power. Energy Web’s support will help ensure this platform is positioned to enable direct I-REC trading and meet global industry standards.
Today, in Brazil, there are various barriers to trading I-RECs due to a lack of liquidity and transparency. This results in various costs and complex processes for sellers and buyers to do business with each other since transaction costs are high to transact both power and I-RECs. This market inefficiency has been throttling the growth of the I-REC market in Brazil, which shows much potential in the next years.
This electricity and I-REC trading platform will meet the needs of the energy sector: electricity generation companies will be able to trade certified commodities directly with buyers in a transparent, streamlined, and trusted way through this digitized, blockchain-based platform. The platform will therefore help buyers, especially multinational corporations, meet their environmental proof of impact and related reporting needs.
This new solution will have profound impacts on Brazil’s deregulated electricity market, where in 2019 around US$26 billion in energy contracts and about 3 million I-RECs moved through the Free Energy Market (Ambiente de Contratação Livre or ACL) —an increase of 110% compared to 2018. Brazil is the second largest I-REC market (behind China, the largest I-REC market). In fact, Brazil’s free market currently accounts for 30% the country’s electricity consumption and is set to grow gradually over ne next years, reaching 100% in the next decade.
¨The use of the Energy Web Decentralized Operating System (EW-DOS) to support the integration of I-RECs with this Brazilian renewables procurement platform will accelerate the renewables market in Brazil, as it will introduce modern, user-friendly technology solutions to help buyers and sellers better achieve their goals.¨ said Walter Kok, CEO of Energy Web. ¨The platform’s use of EW-DOS will lower the cost and increase the transparency of the transaction process.”
The integration of all the aspects of the solution and players involved, as well as the software development, is Fohat’s role in the project. AES Tietê intends to use the platform to settle both energy and I-REC contracts.
¨We use energy intelligence, the most advanced in energy innovation, to connect the world of energy to the financial world using blockchain and a number of other technologies. Our platform integrates all sides involved in the transfers, the energy generator, the issuer of the certificate, and the buyer, in a fully digitalized form,¨ explains Fohat CEO, Igor Ferreira, emphasizing that the AES Tietê project makes the application of the 3Ds of the energy sector possible in Brazil.
¨We are building on our work to respond to and anticipate major trends in the energy market with a focus on our customer needs. The Fohat platform would allow our renewable power to arrive at the client, in accordance to our market positioning, commercial, and strategic goals. We are developing the first digitized renewable energy marketplace for the Brazilian Power Sector.” states Julia da Rosa Howat Rodrigues, head of Research, Development and Innovation at AES Tiete. .
About us and our Partners
About AES Tietê| AES Tietê acts an integrated energy platform adjustable to the demands of its end users that offers sustainable custom solutions. Operating in Brazil for nearly 20 years, it is one of the country’s largest electricity generation companies. It owns 9 hydroelectric powerplants, 3 small hydro plants (State of São Paulo), the Alto Sertão II Wind Complex (State of Bahia), and has recently completed the acquisition of the Guaimbê Solar Complex (State of São Paulo). The company’s asset portfolio includes the Ouroeste Solar Complex, which is under construction. The new Energy Generation Operations Center (COGE) (Bauru, State of São Paulo) is one of the most modern technology and integrated operation centers in Brazil, which remotely controls all company assets. www.aestiete.com.br.
About Energy Web | Energy Web is a global, member-driven nonprofit accelerating a low-carbon, customer-centric electricity system by unleashing the potential of blockchain and decentralized technologies. EW focuses on technology integration and development, co-creating standards and architectures, speeding adoption, and building community. In mid-2019, EW launched the Energy Web Chain, the world’s first enterprise-grade, open-source blockchain platform tailored to the sector’s regulatory, operational, and market needs. EW also fostered the world’s largest energy blockchain ecosystem, comprising utilities, grid operators, renewable energy developers, corporate energy buyers, and others. Energy Web has become the industry’s leading energy blockchain partner and most-respected voice of authority on energy blockchain. For more, please visit https://energyweb.org.
About Fohat | Founded in 2017, Fohat is a Brazilian energy intelligence company that offers innovative energy intelligence solutions to enable a Free Energy Market. By efficiently providing cheaper energy, it has the mission of making a positive impact on the planet, people and organizations, with inclusive and sustainable development, responsibly delivering value for the society, the environment and the economy, with social inclusion and wellbeing, which is fully in line with the global 3D energy model (decarbonization, decentralization, and digitalization). Fohat’s solutions cover both edges of the energy sector, from generation to storage (by managing and dispatching distributed energy resources), trade and consumption. It is a benchmark for sustainable innovation as the first company in Latin America to use blockchain in the energy sector, in addition to being actively involved in the development of the global energy policy framework as an Energy Web Member. Follow us on YouTube, LinkedIn, Instagram and Facebook.