ENERGY BLOCKCHAIN
“A utility can handle up to 20% of production from solar and that helps the grid because it produces electricity when needed.” — Elon Musk
Block chain or distributed ledger technology is a decentralized data structure that can be defined by a list of records, also called blocks, that can contain data from any type and that are linked by means of cryptographic references.
What is Energy Block chain?
It’s the concept of using Block chain to provide support to the energy sector
The Energy industry has been continuously being improved by innovation and investment for the future of clean energy in every domain of its whether it solar, tidal, wind innovation has been since at a rapid growth with many new technologies.
Block chain has gained significant interest of many firms due to its potential to transform the energy sector. Block chain is basically secure trading and managing of data. Which if implement in energy is will be one most the most significant technological advancement.
“Blockchain technology in the energy market is predicted to hike from USD 200 million in 2018 to around USD 18 billion by 2025.”– Global Market Insights Inc
The majority of utilities view blockchain as “still emerging.” Potential applications include supply chain, asset management, and organizational performance. By applying blockchain to their vast stores of data, utilities can unlock new revenue streams.
How can Block chain help in the energy sector?
Block chain technology can facilitate energy transactions on a distributed or wholesale level, creating a virtual grid. Consumers can trade among their own devices and resources, with their neighbors, and with the grid. The entire process could be automated through smart contracts. It can also help to regulate the flow of the energy supply to provide enough energy everywhere, i.e., energy won’t be wasted by providing large amount to cities, instead the access energy could be send over to underserved, which will be a big change.
Key benefits.
Most beneficial factor for the energy sector will be the reduced transaction cost.
· Affordable energy for the underserved community
· Reduction in the cost due to lower transaction cost
· Creating of smart grid with communication amount various electrical appliances
Use cases of Energy Block chain
· Energy data management
· Peer-to-peer energy trading
· Wholesale energy distribution
· Financing energy access
· Oil and gas resource exploration, storage and management
· Energy cryptocurrency
Let’s discuss some of the Use case
1. Peer-to-peer energy trading
The application of block chain in peer-to-peer energy trading is perhaps one of the most disruptive and exciting use cases around block chain energy. Block chain networks enable customers to trade electricity and unite a multi-level system of electricity producers in one network.
This network enables trade and buy of excess energy from other participants.
Some of the firms working on this application :-
· The Brooklyn Microgrid:
The Brooklyn Micro grid is a block chain-based energy project by LO3 Energy, which connects people to trade electricity directly with their neighbors, bypassing large energy utility companies.
· ME SOLShare:
ME SOLShare, a block chain start up in Bangladesh, is connecting homes with solar panels together through a community micro-grid.
2. Oil and gas industry
Block chain technology helps lower oil and gas cost and allow maintenance of various trading systems. Furthermore, block chain can also reduce costs associated with labor, data management, data visibility, settlement delays, and inter-system communication.
3. Energy cryptocurrency
Mainly aims to motivate the solar producer by rewarding them. It helps the producers in raising funds for the energy generation on other projects
Few of the firms working on this application are: -
· SolarCoins:
SolarCoin, an MIT start up, pays individuals with an alternative digital currency for generating solar energy.
· M-PAYG:
Danish start up, M-PAYG, is on a mission to significantly improve access to renewable energy for poor people in developing countries by digitizing access to energy.
Many more…..
Problems faced
The energy industry and its internal processes today are still not in use in the energy sector due to it not being secure enough, fast enough, and efficient enough to keep up with the digital transformation. Other major reasons being: -
· Innovation: lack of stable infrastructure, and many being in the early stages and idea
· Acceptance: Still users are not comfortable having money in their electronic/mobile devices. Believability and gaining trust of users. Building this trust and credibility will take time.
· Industry Mind-set: it will disrupt major industry from making profits.
Block chain start-ups disrupting the energy sector
· Power Ledger : An Australian company enabling peer-to-peer (P2P) energy trading for communities.
· Greeneum : An Israeli start up incentivizing customers for energy saving and eco-friendly lifestyles by earning carbon assets in the form of cryptocurrency for every watt-hour of renewable energy generated.
· Grid+ : A US start up that allows consumers to cut out the energy retailer and buy energy directly from producers via an Ethereum-powered block chain network, cutting and managing energy usage.
· Grid Singularity : A German start up focusing on the exchange of granular and private data between different parties within the energy market.
· Power Ledger — Energy Cryptocurrency: Australian tech start up Power Ledger develops distributed ledger technology so that users can transact energy, trade environmental commodities, and invest in renewables.
· MotionWork — Charging Electric Vehical (Evs): German start up MotionWerk supports homeowners and electricians overcome common barriers to EV charging installations
And many more…………
Conclusion
Hence, Blockchain or distributed ledger technology is a rapidly evolving technology with tones of applications in the energy industry. It supports interaction and transaction between participants without the need of middle man with transparency and tamper- proof transactions. Blockchain provides a mathematical basis for information management and coordination across participants in a network. It minimizes the role of intermediaries and reduces transaction costs and friction. It also enables the sharing technology which could help the underserved communities by providing excess energy from the cities.
Blockchain is one of several distributed ledger technologies that could serve as a framework for many other emerging markets.
