Chinese green energy firm GCL Energy Technology is linking arms with AntChain, the blockchain technology arm of fintech giant Ant Group, to roll out a novel Real World Assets project, which attaches virtual tokens to underlying physical assets, and which could be the first of its kind in the solar power sector.

As the underlying physical assets in this RWA project, GCL Energy's PV power stations are characterized by clear ownership and stable returns and meet stringent professional criteria, Chen Shen, general manager of GCL Energy Technology Asset Management, said at the Yicai Capital Forum 2024 on Dec. 20.

The project will leverage Hangzhou-based AntChain’s blockchain technology to process asset information and produce virtual tokens attached to GLC Energy’s solar power plants, Chen said. Investors who purchase these RWA tokens can benefit from the operational returns generated by the underlying PV assets.

RWA projects differ from typical cryptocurrency ventures in that they are founded on tangible, real-world assets, Chen said. During the tokenization process, critical details such as the physical existence of assets, their operational status, and the attribution of asset rights are meticulously documented.

RWA projects significantly lower the investment threshold for entering the renewable energy sector, enhance asset liquidity, increase transparency in asset management and transactions, as well as reduce associated risks and costs, Chen said.

China had 6,089 megawatts of solar power connected to the grid as of the end of 2023, demonstrating the vast potential of PV station assets, according to the National Energy Administration.