A blockchain-based model for token renewable energy certificate offers

• Autor(a) principal: Marques, Naielly Lopes
• Data de Publicação: 2023
• Outros Autores: Gomes, Leonardo Lima, Brandão, Luiz Eduardo
• Tipo de documento: Artigo
• Idioma: eng; por
• Título da fonte: Revista Contabilidade & Finanças (Online)
• Texto Completo: https://www.revistas.usp.br/rcf/article/view/212524
• topic: blockchain; renewable energy certificates; real options approach; market uncertainty; energy sector; blockchain; certificados de energia renovável; abordagem de opções reais; incerteza de mercado; setor de energia

This article proposes an investment model for a renewable energy generator that allows it to earn the right to issue Renewable Energy Certificates (RECs) and sell them through quarterly sales auctions promoted by the blockchain. Blockchain technology can further promote the RECs market, as it enables tokenization and distribution of certificates. We did not find articles in the literature that analyze the decision to invest in decentralized autonomous organizations (DAOs) that have rules for issuing and trading RECs specified in smart contracts, which are executed and validated by the blockchain. This article contributes to the literature on blockchain technology applications in the renewable energy market by proposing issuing and selling RECs tokens through a DAO. The relevance of this research is that it shows that simple real option pricing methods can help decision-makers evaluate investment opportunities under uncertainty and flexibility. The tokenization and distribution of RECs via blockchain can promote transaction agility, reduce or eliminate bureaucracy in the means of payment, and increase the security and transparency of transactions. We propose a model for issuing and selling RECs in smart contracts. We assume that the generator has the flexibility to invest now or in one year to enter the platform, considering the energy generated in one year by a single typical 4MW wind turbine. Our model assumes that the price of the REC token follows an inverse demand function subject to stochastic shocks. The results contribute to the understanding of the performance dynamics of digital products under uncertainty and flexibility and show that distributed ledger technology (DLT) may be a viable alternative for renewable energy incentives.