Leveraging self-sovereign identity & distributed ledger technology in renewable energy certificate ecosystems

Renewable Energy Certificates (RECs) are tradable units that represent the commodity in the form of environmental attributes generated for each unit of electricity produced by a renewable energy source. Furthermore, the energy sector's digitalization ushers in new crucial enablers like Distributed Ledger Technology (DLT), which may be used for REC record tracking and trading. Unfortunately, there are a number of outstanding issues such as the lack of a common standard for the representation, communication, and verification of REC, reliance on centralized entities, and others. In order to harness the true potential of energy DLT and REC, it is imperative to address these issues. In this visionary article, we propose a holistic approach which leverages a novel decentralized identity mechanism called Self-sovereign Identity (SSI) and DLT. We present its architecture, based on a rigorous threat model and requirement analysis as well as detailed use-cases to illustrate how the architecture can be used in different REC use-cases.