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Spritju Deep Dive on Energy Traceability: How Does it Work?

To guarantee that your energy consumption is fossil-free, you need to be able to verify its origins. An hourly verification, which is requested by more and more companies, needs new technology to work. This is why Spritju has created our energy traceability machine, a digital platform that shows you where your energy comes from hour by hour. This new system uses both blockchain technology and AI to work, two technologies that take the potential for these types of solutions to the next level.
Energy traceability is becoming increasingly important for both providers and consumers of electricity. To make sure that you don’t contribute to the further use of fossil fuels, companies and individuals alike are asking for proof that the power they buy comes from clean energy sources.
Until now, this proof comes from certifications in different forms of renewable energy contracts, that guarantee that over time, the amount of energy you buy will be produced from renewable sources. However, as more and more companies are committing to 24/7 carbon-free energy, there is a call for more granular traceability where the energy’s origins can be verified on an hourly basis. This is something that Spritju is working to accomplish.

Energy Traceability is Growing in Demand

Svea Solar, one of Spritju’s customers, wants to use more granular traceability to show the real footprint of individuals' and companies’ energy consumption. They are establishing a trading market for more granular guarantees of origin, using Spritju’s technology to build a platform for their customers who produce energy to buy and sell guarantees of origin.
“Spritju is an actor, much like us, aiming to change the status quo. There are limitations with the current system of origin guarantees, which only account for the origin of electricity on an annual basis. With time-based guarantees of origin, it reflects much more the real climate footprint of energy consumption. Increased traceability provides better governance for us and other companies working to reduce the share of electricity from fossil fuels in the grid,” said Marcus Cordts, Head of Energy Services at Svea Solar.
“Additionally, Spritju opens up the trade of guarantees of origins to be more transparent compared to today, allowing the end consumer to understand what they are truly paying for guarantees of origin.”
Blockchain can be used not only to protect the ownership of digital art, but also to guarantee the origins of your energy consumption.
Blockchain can be used not only to protect the ownership of digital art, but also to guarantee the origins of your energy consumption.


Tracing Energy Consumption with Blockchain and AI

But to fully understand the value of a granular energy traceability system, you need to understand the system itself.
Let’s start with what a blockchain is: A system that makes transaction data decentralized and transparent. In a traditional transaction system, information, payments, and other data go through a central authority such as a bank or an energy utility service. This means that the data can be intentionally or unintentionally altered by this central authority, reducing the trust that the data is accurate and making the whole system vulnerable to defects in the central authority.
In a blockchain, however, actors make transactions directly with each other through systems such as Smart Contracts. Any transaction data is then stored in a distributed ledger, which can be accessed by the whole supply chain on a need-to-know basis, and which is continually updated as more related information is added. Each time a transaction is made, its data is encrypted and packaged into a “block”, which is added to the chain of previous transactions, thereby building a chain of blocks, or “blockchain”. It is this chain of transactions that can be accessed in the ledger. As this data is distributed, there is no reliance on a single entity to verify it, thereby increasing trust in the information. The data also cannot be altered or refuted by any of the involved parties, which helps auditing and certification.
Certain blockchain verification systems, also known as consensus functions, can be very energy-intensive, while others are not. The system used by, for example, bitcoin is called Proof of Work (PoW) and involves solving computationally intensive puzzles to verify blocks of transactions, which can consume a lot of energy. But there are two other systems, Proof of Stake (PoS) and Proof of Authority (PoA), which require much less energy as they verify transaction blocks through ownership of blockchain tokens (PoS) or specific identity and accountability factors (PoA). As PoA is not applicable in an open market such as the energy market, PoS is the best system for energy traceability.
If you want to know more about blockchains, take a look at our explainer article on the topic.

Spritju’s Four Engines for Better Transparency

In the energy sector, accessing trustworthy information can alleviate many of the challenges of energy traceability. By accessing transactions stored in a blockchain, consumers can verify that the electricity they buy was originally purchased from a renewable energy producer. The difficulty comes from matching energy consumption with energy production and managing the tokens to certify the origin of the electricity used. At Spritju, we have overcome this by building an AI-powered machine with four engines that make energy traceable through the blockchain.
Spritju’s four engines match energy consumption data with production data, store the data in a blockchain, and show the origin of your energy in a transparent and auditable way.
Spritju’s four engines match energy consumption data with production data, store the data in a blockchain, and show the origin of your energy in a transparent and auditable way.

The machine is built to take the data of your energy consumption and match it with energy generation data at each hour, and then use blockchain technology with Proof of Stake consensus to track the origin of each kWh you use and verify its source.
Through the use of AI, the first engine of the machine can adapt to regulations and standards for hourly electricity matching to get the most accurate matching possible. The data sources and output are then recorded in the second engine and collected in a data block that is added to the Spritju blockchain system, fully auditable by our audit partner. This data is also fully transparent and accessible to the consumer, meaning that they have full knowledge of where their electricity comes from and how the matching was made.
The third engine of the machine creates tokens through the blockchain’s PoS verification system. These tokens can then be used as proof of the origin of the energy used, which is especially important when producing e-fuels like SAF, hydrogen, or methanol. Spritju gives fuel producers verifiable proof that the energy they use comes from renewable sources, which is imperative to claim that these fuels are fossil-free.
Finally, the fourth engine connects the machine to a consumer’s devices, making it so that they can see all the output from the four engines and know what the source of their consumption is, which in turn allows them to make informed decisions when consuming power.
To find out more about how Spritju works to make energy transparent, visit spritju.com.
  • Princess

    7 w

    This is both innovative and essential for ensuring transparency and accountability in energy consumption.

    6
    • Adam Wallin

      7 w

      Thank you for explaning your technology in more detail, it's a very new and interesting solution!

      8

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