Current MRV mechanisms collect and authenticate data for policy and regulatory compliance. The most visible example are MRV systems used to identify and report greenhouse gas (GHG) emissions data attributable to electricity production.
Today, there is no common MRV system for providing visibility of energy or environmental attributes and production characteristics across the energy system value chain. Therefore, there is currently no ability for these differences to be marketed to consumers or to aid regulators in valuing their differences in the marketplace.
Going forward, digital technologies that include distributed ledger (blockchain), data analytics, machine learning, and the internet of things will fundamentally transform MRV systems. Enabling markets to identify a wide variety of attributes related to resiliency, sustainability, geography, and supply chain, will greatly increase consumer choice and incent companies to develop products that compete based on these additional attributes.
We refer to this transformational innovation as “Digital MRV” —technology and data management tools with the capability to quantify, communicate, and authenticate outcomes in real-time. Digital MRV has the potential to improve the speed and accuracy of reporting, lower reporting and verification costs, and increase scalability and security of MRV systems.
Digital MRV is poised to address these hurdles, in a way that can better connect new, differentiated energy markets to consumers who want to value them. EC-MAP is working to align policy with a Digital MRV future.