Just when people are beginning to digest and accept the increasing number of disruptive and groundbreaking trends and technologies that are coming up each day, few technologies are getting ready to permanently change how things were once being executed.
Blockchain is one such technology which began its incalculable legacy with banking and finance sector. It is now slowly but steadily spreading its presence in most industries, including healthcare, social networking, energy sector, critical infrastructure security, real estate and insurance, supply chain management, just to name a few.
Blockchain trend which started in 2009 for the finance sector as a digital ledger, is now not only used to record financial transactions but to track virtually everything of value. Energy and commodities is one of the leading edge industries to adopt blockchain to revolutionize the record keeping and energy sharing within secured networks. Energy and utilities management is moving towards seamless transaction mode using blockchain for various use cases.
Let’s see what blockchain has in store for the energy sector!
1. Peer to peer power trading
An apartment in Western Australia has paved way for economical solar electricity to be traded between neighboring residents within apartment blocks, thus enabling peer-to-peer (P2P) trading of electricity in a project supported by the Australian Renewable Energy Agency (ARENA). Residents are empowered to freely sell their power to one another, allowing those with surplus production, for example, to sell power to their neighbors as required.
Doesn’t that sound quite exciting !?
2. Establishing a decentralized energy system
There is a an extremely awesome possibility that Blockchain will directly connect the energy suppliers with the energy consumers (Voila!), and it will make the current system where each party in the energy sector operates on different levels, more intelligible. Adoption of distributed energy sources (small energy assets) might cut down on costs, increase dependability and also aid in the integration of renewable to electricity network.
3. Renewable energy credit sharing
Though electric vehicles are much spoken about, there is limited charging infrastructure and no accepted regulations over billing, scheduling and payments software, creating less resistance to new concepts and technologies. For RECs, Blockchain can play as a substitute to the legacy platforms and reduce the possibility of double-counting. Developers might consider designing these REC trading platforms to conform to existing regulations.
Here are few startups working on Blockchain use cases for energy sector application.
Power ledger– Tokenizing P2P energy marketplace
Encoin- Rewards for distributed energy generation and storage
The sun Exchange– P2P marketplace model expansion beyond local communities
Bankymoon – Smart energy metering system
Autogrid – Decentralized energy data platform
Blockchain seems convincing for me as a promising future of record keeping and transactions especially for the energy sector where there is a clear need for more transparency, better security and efficient and speedy transactions. I truly believe that Blockchain will be propitious in the long run.