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How New Technology is Turning the Global Energy Market Green

Blockchain consortium to develop a transactive energy system to power a fleet of electric vehicles and charging stations in Toronto, Canada.

Hitting a Wall with Climate Change

The science is clear the world must act quickly to mitigate the impact of climate change. Human activity is changing the composition of our atmosphere by releasing higher quantities of greenhouse gases such as carbon dioxide. We do this through our energy and transportation systems, agriculture, and waste systems, among other activities.

Current State of the Energy Market

One major challenging in making the energy sector more green is the value chain. While many countries around the world have open and deregulated energy markets, the global energy market is characterized by a centralized value chain that creates vast inefficiencies.

While there has been increased automation on the transmission, communication and control levels, power grids are still working with old-school technology. This requires significant capital expenditure from grid operators who must invest in extending communication and control infrastructures to monitor and govern the network.

These factors all affect energy price, service quality, and above all, efficiency. As climate change triggers natural disaster, moreover, the consequences can be catastrophic. When power grids go down, a cascade effect can be triggered as everything in society depends on power. In an earthquake, for instance, all forms of infrastructure in an area may collapse.

Benefits of Blockchain

Climate change has increased the urgency of improving energy efficiency and sustainability. Blockchain technology has the ability to deliver these results. It can radically simplify and enhance the reliability of the energy value chain because it can directly link producers with consumers while optimizing the distribution of energy.

Canada a Leader in Energy Innovation

A consortium recently formed in Toronto, Canada to test blockchain for smart energy systems. The consortium includes the Insolar blockchain platform, the Toronto and Region Conservation Authority, York University, and Hero Engineering.

Blockchain Technology and the Energy Sector

Blockchain technology can be used to create ‘smart’ energy grids because of its highly efficient consensus mechanism, which incorporates both Proof of Work and Proof of Stake elements.

Conclusion

The Canadian consortium will lead to the development of an energy smart grid on a blockchain and proof-of-concept platform for local electric vehicle management for the city of Toronto, Canada. However, the potential of blockchain technology for turning the global energy sector green extends beyond the bounds of a single municipality. The promise lies in addressing climate change on a global level via the creation of viable green technology for the energy sector.

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Mina Down

Writer interested in blockchain projects that will add to the social good