GoJ Funded P2P GC Trading Project

D-Sharing Co., Japanese climate tech startup, has been conducting the Ministry of Environment's (MOE's) Nudge Demonstration Project using the GC methodology in Japan since 2018.

In 2018, D-Sharing conducted P2P GC trading project between prosumers and EV bike chargers using a blockchain system. (Hourly Matching: Stages of development of the decarbonization of power system)

In 2023, D-Sharing conducted another nudge project to encourage day-time EV charging with an innovative solution to quantitatively evaluate CO2 emission avoidance value using a smartphone application and demonstrated the validity of its nudge model.

In 2024, as a nudge pilot project of the Ministry of environment, Japan, D-Sharing initiated P2P half-hourly GC trading project backed by nation widely integrated 10 PowerGrid Companies’ smart meter system which can provide half-hourly electricity consumption and generation data of more than 70 million households to D-Sharing cloud database linked to its GC trade platform remotely, automatically, and simultaneously (day-after at this moment) through API.

The MOE project demonstrates feasibility of GC P2P trading by more than 200 households (7,000 households to be joined by the end of the Project) for (i) a simple P2P GC trade between a consumer and a prosumer, (ii) zero carbonization of EV charging, and (iii) half-hourly demand and supply matching in a municipality in Japan.

The steps of the GC trading are outlined as follows.

1. D-sharing issues half-hourly time-stamped GCs to prosumers by noon of the following day based on the actual amount of electricity generated provided by the authority after verification process by D-sharing. The amount of GCs issued are displayed on the prosumers' smartphone application and ready for trading at anytime afterwards.
2. D-sharing also informs the registered consumers of the amount of GCs required for cancelling, based on the actual half-hourly electricity consumption data provided by the authority.
3. Prosumers (GC sellers) and consumers (GC buyers) execute the transaction of half-hourly GCs on the following day (can be updated soon to several hours later on the same day) of the actual delivery of electricity. D-Sharing intermediates (matches) the transaction in multiple modalities including forward / future trading with AI forecasted generation and consumption data.
4. On the D-Sharing GC trading platform, a GC seller places a sell order consisting of a minimum selling price and quantity, and the GC buyer places a buy order consisting of a maximum purchase price and quantity.
5. D-Sharing executes the transaction if its terms and conditions are met; GC is transferred from the GC Seller's account to the GC Buyer's account. Then, the GC will be cancelled upon the GC Buyer's request to D-Sharing.
6. D-sharing simultaneously transfers a settled amount of money (points) from the GC purchaser's money account to the GC seller's money account.

While the house-house transactions are currently virtual during GoJ pilot project, D-Sharing initiated preparation for B2B transaction on a commercial basis in a form of EAC future trade.

On the scheme, D-Sharing ensures to transfer buyer’s EAC to be issued by the authority after the transaction to the GC purchaser exactly in proportion to the amount of the transaction.

Decarbonization of EV Charging: When a consumer charges EV at home, D-Sharing AI based disaggregation technology can identify the EV recharge portion of the electricity consumed with an reasonable accuracy, and the consumer can purchase the exact amount of GC through P2P trade for EV decarbonization.

Dual-grid Project: In addition, with the cooperation of a municipality in Nagano Prefecture (population 70,000), a central region of Japan, D-Sharing conducts a dual-grid project to achieve local hourly matching at a district level using social capital power of the community. This nudge model will encourage GC sellers and buyers in the community to trade by visualizing the volume of transactions required for community based half-hourly matching of GC supply and demand in the community via smartphone applications and other means. Commitment effect is expected as a nudge methodology.

D-sharing calls this nudge model "Dual-Grid", combination of the physical and virtual grids, and encourages GC traders to voluntarily participate with their own choice, and once all the community members participate, the virtual grid will turn to be the real zero carbon microgrid, i.e., a demand-push approach for developing a distributed renewable energy based power system.

D-sharing believes that this approach can be also applied in developing countries where timely transition from heavy oil-fired power sources to renewable energy, is a critical issues especially in island countries and land-locked areas in Asia, Africa, and the Pacific. Cognizant of it, D-Sharing and the Ministry of the Environment Japan are working together to deploy the Japan originated innovative model using this GC methodology.