Vermont Utility Customers to Trade Renewable Energy Credits on LO3 Blockchain

With an ambitious 100% renewables goal by 2025, the new marketplace by Green Mountain Power and LO3 Energy is an eco blockchain play.

Nov 20, 2019 at 11:59 p.m. UTC
Updated Sep 13, 2021 at 11:43 a.m. UTC

Vermont’s largest electric utility is using blockchain platform LO3 Energy for its new energy marketplace pilot project, embracing blockchain tech as Green Mountain Power (GMP) drives toward a 100% renewable goal in the next five years.

GMP’s program is called Vermont Green and will be available through a mobile app for GMP’s 220,612 customers on Dec. 3.

It allows Vermonters to buy and sell renewables with a blockchain storing their transactions. 

Energy blog Microgrid Knowledge first reported the new service after it was revealed in a Nov. 18 filing with the state regulator. 

Since winning a 2016 patent for geothermal energy transfers, green energy startup LO3 has built out high-profile partnerships for its peer-to-peer system. It won an undisclosed sum investment from fossil fuel giant Shell in July.  

With this launch, LO3 Energy becomes the service of choice in Vermont’s latest green energy campaign. GMP picked LO3’s proposal from six different applicants, according to the filing, recognizing that blockchain provides the best solution for user privacy and transaction immutability.

Additionally, blockchain allows the service to grow alongside an increasingly decentralized marketplace, the regulatory filing said.

“As an increasing number of distributed assets are deployed across GMP’s service territory, GMP views the ability to utilize distributed consensus associated with blockchain as a potential means to efficiently track this chain of custody going forward.”

As it stands, market participants will set bids for renewable energy credits on the GMP app, host to LO3’s Pando energy marketplace. The utility expects renewable-conscious businesses in particular to buy credits through the app.

Stakeholders believe the pilot marketplace shores up a problem in Vermont’s renewables-heavy energy sector; with services like home solar panels booming, there’s more than enough electricity to go around. 

“There’s a huge appetite for local businesses to be 100 percent renewable and at the same time there’s an increasing amount of home solar production,” LO3 Energy founder and CEO Lawrence Orsini said in a statement

“This platform pairs the local supply with demand at the grid edge and we are delighted to be working with GMP to bring this market to commercial reality.”

Graham Turk, Innovation strategist for GMP, wrote in the Nov. 18 filing that blockchain works in this use scenario.

“Blockchain is uniquely-suited for tracking chains of custody (especially for non-physical assets like VGAs), creating a more transparent tracking system for buyers, sellers, and regulators. LO3’s platform is designed with scalability in mind and such future expansion may be found practical.”

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown