Renewable Energy Tokenization via Distributed Ledger

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Solution Overview

Problem

Governments and commercial entities face challenges in receiving credit for renewable energy generation due to the lack of effective certification and retirement processes for Renewable Energy Credits (RECs), leading to scrutiny on renewable energy data.

Innovation Solution

A system and method for tokenization, management, trading, settlement, and retirement of renewable energy attributes using distributed ledgers, where renewable energy generation data is tokenized, written to a ledger, added to a digital wallet, exchanged for cash tokens, and retired, ensuring valid and immutable record-keeping.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional REC certification and retirement processes are used, then entities can receive credit for renewable energy generation, but the process is prone to scrutiny and lack of transparency due to manual data verification

Engineering Contradiction:

Improvecredibility of renewable energy credit certificationVSAvoidtransparency of generation data

Core Design Contradiction:

ReliabilityVSLoss of information

Solution Approach 1:

The patent replaces manual mechanical verification processes with automated digital tokenization and distributed ledger technology. Renewable energy generation data is automatically tokenized into digital certificates that are immutably recorded on a distributed ledger, eliminating manual data verification and enhancing both reliability and transparency simultaneously.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces a distributed ledger system as an intermediary between renewable energy generators and certifying authorities. This intermediary provides a transparent, immutable record of all generation data and certification transactions, allowing all parties to verify credentials without manual intervention while maintaining data integrity.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If manual REC tracking and retirement processes are used, then credit can be assigned, but double counting cannot be prevented and settlement is inefficient

Engineering Contradiction:

Improvesettlement efficiencyVSAvoidprevention of double counting

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent replaces manual tracking and retirement processes with automated smart contract execution on a distributed ledger. When a REC is retired, the smart contract automatically updates the ledger, providing immediate, immutable proof that prevents double counting while enabling instant settlement between parties.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent implements real-time feedback through the distributed ledger system that automatically notifies all participants when a REC is retired or transferred. This immediate feedback mechanism prevents double counting by making the status of each REC visible to all network participants in real-time, while simultaneously enabling efficient automated settlement.

Inventive Principle:

Principle #23Feedback

3Measurement precision

If detailed renewable energy generation data is tracked manually, then verification can be performed, but the process is complex and time-consuming

Engineering Contradiction:

Improveaccuracy of generation data verificationVSAvoidtime for certification process

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent performs preliminary action by automatically tokenizing renewable energy generation data at the source when energy is produced. The distributed ledger immediately records the generation event with precise measurements, eliminating the need for subsequent manual verification steps and reducing certification time while maintaining measurement accuracy.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent substitutes manual data collection and verification processes with automated digital tokenization and blockchain recording. Generation data is automatically captured, tokenized, and immutably recorded on the distributed ledger in real-time, providing precise verification instantaneously without manual intervention.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS11544788B1Systems and methods for tokenization, management, trading, settlement, and retirement of renewable energy attributes

Publication Date: 2023.01.03 JPMORGAN CHASE BANK NA

AI summary

Systems and methods for tokenization, management, trading, settlement, and retirement of renewable energy attributes are disclosed. In one embodiment, in an information processing apparatus comprising at least one computer processor, a method for tokenization, management, trading, settlement, and retirement of renewable energy attributes may include: (1) identifying renewable energy generation data associated with a seller to tokenize; (2) generating at least one renewable energy token for the identified renewable energy generation data; (3) writing the renewable energy token to a first distributed ledger; (4) adding the renewable energy token to a digital wallet for the seller; (5) exchanging the renewable energy token for a cash token owned by a buyer by associating the renewable energy token with the buyer and associating the cash token with the seller on the first distributed ledger; and (6) retiring the renewable energy token.