Blockchain Technology Revitalizing the Energy Sector

Blockchain Technology Revitalizing the Energy Sector

Energy CIO Insights | Thursday, June 21, 2018

After the renewable energy revolution, our power grids are carrying current from both renewable and non-renewable resources. Tradable certificates are used to identify the renewable sources used in the grid.

When a unit of electricity is generated in a renewable power plant, data that are recorded in the meter are uploaded in the system and corresponding certificates are generated. While one party deals with the buying and selling of these certificates, another party verifies them. In such non-transparent system, the transaction costs may rise due to accounting error and fraud, creating an operational challenge for renewable energy generator companies. To overcome this hurdle, energy experts have come up with a solution that employs blockchain technology in energy grids.

Initially, energy sector was a vast one comprising of power generating plants, transmission lines, and distribution systems. However, recent times have seen the emergence of micro-grid concepts, where-in the consumers can generate power through roof-top solar-panels, and when there is a surplus of energy generated, the consumers can adopt peer-to-peer energy trade. By employing blockchain technology in energy grid, transactions can be verified by neighboring computers that are present in a network, ensuring the timely payment for the energy supplied by the consumer.

With a blockchain-based system, producers can get paid immediately, so they need less capital to start and run a generating business.

Power Ledger, an Australian start-up, has built an application that converts an apartment into a micro-grid through a shared system of solar panels where consumers adopt peer-to-peer energy transaction with blockchain technology. Another energy company--LO3--has teamed with Siemens to build a local smart grid in Brooklyn, where the consumers can buy and sell energy through power generated from rooftop solar panels with their neighbors by using blockchain technology.

Check Out: Energy Tech Review


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