Blockchain technology has the potential to transform the energy sector. Innovations, including rooftop solar, electric vehicles, and smart metering, have permanently crippled the energy industry. Now, the enterprise Ethereum blockchain presents itself as the next emerging technology to drive growth in the energy sector through its smart contracts and system collaboration. Of the many uses of blockchain, energy and stability are often underestimated. However, the World Economic Forum, the Stanford Woods Institute for the Environment, and the PWC released a joint report identifying 65 existing and emerging blockchain use cases for the environment. These uses include new business models for energy markets, real-time data management, and the transfer of carbon credits or renewable energy certificates to the blockchain.
Distributed ledger technology has the potential to improve the efficiency of utility providers by tracking the retention chain for grid materials. Beyond Province Tracking, Blockchain offers unique solutions for renewable energy distribution.
Legacy energy sectors, such as oil and gas, also benefit from the implementation of enterprise Etherium solutions. There is an opportunity to take advantage of blockchain technology in complex systems with multiple actors. Petroleum, for example, is one of the most traded commodities and requires a network of refiners, tankers, employees, governments and regulatory bodies. The complex network of participants suffers from slide infrastructures and multiple process inefficiencies. Large-scale collective blockchain technologies for oil and gas are seeking to invest in and implement technology because of its ability to reduce costs and reduce environmental damage.
Oil and gas companies are particularly concerned about privacy and trade secrets. These private blockchain networks offer data access and access to selected consortiums for pre-approved parties. Private and consortium blockchain provide an interim solution unless the public blockchain implements the privacy requirements required by the business.
The main advantages of blockchain in the energy sector are:
Increased transparency for stakeholders without compromising privacy Companies seeking to implement blockchain technology in wholesale power distribution focus on connecting end users to the grid. Together with IoT devices, blockchain technologies enable consumers to trade and purchase energy directly from the grid rather than retailers. Grid + is a blockchain energy company focusing on wholesale energy distribution. The firm’s identification of retailers is a source of instability in the consumer electricity market.
Retailers have very little grid infrastructure. Instead, they manage only the types of services that blockchain technology can change, such as billing and measurement usage. Completion of retailers with blockchain-based platforms has the potential to reduce consumer bills by about 40%. By connecting consumers directly to the grid, Ethereum allows consumers to purchase energy from the grid at their own cost. The result is a more equitable and stable energy market with lower electricity costs.
How does blockchain affect harmonious energy trade? Although wholesale energy distribution is the primary application for many companies, it is not the focus of all energy companies. A Blockchain in Energy report by Wood Mackenzie shows that 59 blockchain energy projects have been building energy markets since Monday. The Peer-to-Peer Energy Market is a common network of people who trade and buy extra energy from other participants. These energy markets benefit the public because they reduce control over central authorities, such as wholesalers. Most firms are using the enterprise version of Ethereum. For example, the Energy Web Foundation uses Ethereum, Truffle Developer Tools, and GNOS Multi-Signature Wallet to build its platform.
When more and more countries reach energy parity, the cost of renewable energy is equal to or less than conventional retail energy. People who generate their own energy will have the ability to trade with their neighbors and peers. Power Ledger, an Australian-born company, has connected communities to create a “micro grid”. Micro grids are a group of interconnected loads and distributed energy resources. Micro grids currently exist as a layer on top of the national grid. However, theoretically, they can be isolated and self-sustaining. Many blockchain energy companies envision a future with large and fully distributed peer-to-peer.
Blockchain Innovations in the Energy Sector