Inspiration for our idea comes from the REC (Renewable Energy Certificates). A Renewable Energy Certificate (REC) is a tradable certificate that represents proof that one megawatt-hour (MWh) of electricity was generated from a renewable energy source. RECs were created as a way to incentivize the production of renewable energy and to help meet renewable energy targets or goals set by governments or corporations. RECs work by separating the environmental and social benefits of renewable energy production from the physical electricity. When a renewable energy generator produces one MWh of electricity, they can create one REC, which they can sell separately from the electricity itself. The purchaser of the REC can then claim that they have supported the production of renewable energy equivalent to the amount of electricity covered by the REC. For example, if a company wants to claim that they are using 100% renewable energy, they can purchase enough RECs to cover all of the electricity they consume. The purchase of RECs provides financial support to renewable energy generators and reduces greenhouse gas emissions and other environmental impacts associated with energy production.
The Global Renewable Energy Certificate Market is growing at a 27.2% CAGR and is expected to reach USD 110.94 Billion by 2030. Also, the growth in REC ecosystem provides companies across the world an opportunity to plan their Net-Zero strategy, helping both big and small companies contribute to the climate restoration. It is researched that RECs help companies to reduce their Scope 2 emissions by 31%.
In a United Nations study, the three key challenges were identified in the current REC market.
- Risk of double counting
- No reliable tracking system of the whole life cycles of the certificates
- No harmonized market, very scattered systems We have developed our solution keeping them in mind and with our solution all of them will be solved.
What it does
Our Solution takes the REC to the next level. First we created a token on the Hedera Blockchain and we named as RET (Renewable Energy Token) and these tokens can be purchased in our Dapp Decentralised Energy Exchange(DEEX) which is built on the Hedera Blockchain. When we see the backend process for every RET purchases, it does contains the users first who purchases the tokens from the Dapp then the purchased amount will be invested in the top 10 best renewable companies in the world. So it will be directly connected to the tokens and when these companies gets the investments then they will produce more Renewable energies and this is make a good increase in the industry and this will create profits for the users/buyers .
This system gives the profit and benefits for traders, Renewable energy companies and the better environment. It will satisfy all the content and obviously it is a win-win situation. We have built this technology with more security and efficiency. As the DEEX connects with the various different Renewable Energy Producing companies, the price of the RET will be also determined by the price movement of those companies. When the investments from the buyers/users are collected in the exchange of the RET, the renewable energy companies will get new investors and it will affect the stock price positively and creates the benefit for the more production and that will positively affect the buyer's profits too.
How we built it
The Decentralised Energy Exchange (DEEX) and the RET (Renewable Energy Tokens) are built and deployed on the Hedera Network. We used solidity as a base language and we chose HTS(Hedera Token Service) as the token standard rather then using the HRC-20, because HTS is a more advanced token standard that provides more flexibility in terms of token design and features. It includes features such as atomic swaps, token burning, and more. Code for the Renewable Energy Token RET
We use React framework for the UI and this gives more user-friendly looks and the Decentralised Energy Exchange is created in the same bases with the help of solidity and with an option of exchanging the RET with other known tokens and the code link is given below. Code for Decentralised Energy Exchange DEEX
Then to track renewable energy usage using Energy Web Zero, we have created a smart contract that records the energy produced and consumed, and allows users to view this information on the Decentralised Energy Exchange (DEEX). Code for renewable energy tracking
We diversify the investments by investing them in the top renewable energy companies. The basic formulation is easy :
Investment per Asset = Total Investment Amount / Number of companies
For example, let's say you have $10,000 that you want to invest in 10 different companies. Using the formula above, you can calculate that the investment per asset would be:
Investment per Asset = $10,000 / 10 = $1,000
This means that you would invest $1,000 in each of the 10 assets, creating a diversified investment portfolio. By investing equally in multiple companies, you can help to reduce the risk of losing all of your investment if one asset performs poorly. Also, for our solution to be technologically climate sustainable, we have ensured to use latest tech modernization practices such as code refactoring, CI/CD, and Hedera Blockchain network, which is world most sustainable blockchain network. Code for diversification
Challenges we ran into
We faced lots of challenges and it was not very easy to give up so we solved our problems and brought everything closer to our accomplishment.
Technology: The main problem here was making a link between the RET and the top renewable energy companies, we had no idea in it. But finally, we found a way for aggregating the investments into the companies through the US stock market and it will be the secure and most liquid option quick buy and sell.
Team: Along with this, we had a global team with members based in different countries – India and United Arab Emirates and coming from different backgrounds technology and business. The hackathon gave us an opportunity to develop collaboration skills and together we were able to build a solution that has both technological and business value in international markets.
Accomplishments that we're proud of
We experienced several hurdles, and it was difficult to give up, so we addressed our problems and moved everything closer to completion. The key issue here was establishing a relationship between the RET and the leading renewable energy providers, which we had no experience with. However, finally, we discovered a method for collecting investments into firms via the US stock market, and it will be the most safe and liquid choice for rapid purchase and sale. We experienced several hurdles, and it was difficult to give up, so we addressed our problems and moved everything closer to completion. The key issue here was establishing a relationship between the RET and the leading renewable energy providers, which we had no experience with. However, finally, we discovered a method for collecting investments into firms via the US stock market, and it will be the most safe and liquid choice for rapid purchase and sale.
What we learned
In our journey we have learnt many skills and we made plenty of mistakes and we were struck in between many regions but we worked hard for finding the solutions and we learnt to use the tools for tracking the renewable energy which was fascinating and for sure we will implement these services like co2.storage, Hedera and energy web zero for many projects. We also learnt of clustering the frame work with the data sets and visualizing it was the best and fun part in our whole project time.
What's next for Decentralised Energy Exchange (DEEX)
Our main motto is to make the RET (Renewable Energy Token) easily available to everyone, where everyone needs to contribute for the environment. So we have decided to list our token in various exchanges and provide this token for companies and businesses for using this as a smart contract, for transactions, for transferring and every single transaction like this will surely help the companies to produce more Renewable Energy. To further build on the impactful idea, we plan to set up our startup in India and apply for various grants including the Hedera’s Sustainability grant as Angel funds.