Saudi utilities developer Acwa Power is to become the first utility-scale power company to adopt the cryptocurrency SolarCoin.

By adopting SolarCoin, Acwa Power will receive digital tokens for every megawatt-hour (MWh) of solar energy produced, which will provide an additional payment method for goods and services.

SolarCoin is a blockhain-based digital asset and currency which has been designed to complement the move towards the large-scale implementation of clean energy. The cryptocurrency aims to incentivise solar energy production by disbursing digital coins for solar energy production, with energy producers to receive 1 SolarCoin (SLR) per 1 MWh of solar energy produced.

While a criticism of other cryptocurrencies, such as Bitcoin, has been that they are very energy intensive and use a lot of electricity to run, Solarcoin will use ultra-low carbon blockchain technology called ‘proof of stake time’ to maintain the open source ledger system. The ‘proof of stake time’ algorithm is significantly less energy intensive than methods used by other cryptocurrencies, according to Acwa Power.

As the price of Solarcoins appreciate, through more users accepting Solarcoin for transactions, claiming Solarcoins can become an additional revenue stream for solar power producers, Acwa Power revealed in a statement launching its adoption of the cryptocurrency. The Saudi developer's 50MW concentrated solar power (CSP) Bokpoort project in South Africa and its 50MW solar photovoltaic (PV) plant in Karadzhalovo are already generating SolarCoin.

MEED's Power & Water Editor will be moderating a panel discussion with Acwa Power and SolarCoin representatives at the World Future Energy Summit (WFES) in Abu Dhabi on 16 January at 8.45am.