Several companies in the energy sector have been attracted to distributed ledger or blockchain technology. The number of organizations putting their capital into blockchain energy is surprising. The organizations included national governments, financial institutions, energy supply firms, the academic community, technology developers, etc. The combination of energy and blockchain is turning out to be one of the best technologies in recent times.
Crediting and trading are the most common applications of blockchain in the energy sector. Those who are interested in this will leverage blockchain to have smooth energy transactions on a wholesale or distributed level, developing a virtual grid. Consumers can trade bitcoin energy among their resources and devices, with the grid, and also with their neighbors. The process of trading can be automated using smart contracts.
What are the uses of blockchain energy?
There are many uses of blockchain, but the most important benefit is the lesser transaction cost. Here are some of the common advantages of blockchain in the energy sector as follows.
- The cost-effective transaction and utility bills for electricity or gas in the market lower the requirement for working capital.
- The emergence of many opportunities in the communication sector for energy devices like electric vehicles, water heaters, solar PV installations, batteries, etc with smart grids or grid operators.
- As more information for grid operators and utilities for integrating renewable energy capacity into the virtual grid reduces cost.
- Affordable energy becomes more accessible for the unmerited communities using decentralized and local renewable grids.
Practical use of blockchain in the energy sector
Here are some practical examples that show the places where blockchain technology can be used in the energy sector.
- Peer-to-peer Energy Trading
Peer-to-peer Energy Trading is one of the best applications of blockchain technology in the energy sector. It combines various aspects like the expansion of renewable energy, building community resilience, and finance. The technology can be operated in a community where the owners of renewable energy assets are allowed to trade their excess electricity with their acquaintances. Some of the successful examples of peer-to-peer energy trading platforms that are based on blockchain are The Brooklyn Microgrid and ME SOLShare.
- Wholesale Trading using Regional Mini-grids
PONTON’s Enerchain 1.0, which was launched in 2019, assists energy traders who are interested in trading data using different platforms as well as data communication processes. Enerchain is known to be the world’s first blockchain-based wholesale energy trade. When it comes to energy trading, people are more interested in oil trading as it has several advantages over traditional equities. When considering oil trading, the öl profit app is widely used by many investors and traders as it is ideal for automating the trading process. Enerchain transactions have a block time (time taken for the mining of a block) of just 1 second, while it is 10 seconds for bitcoin and 20 seconds for Ethereum. Currently, Enerchain is supported by over 40 European utilities.
- Establishing access to renewable energy
Tobalaba is an energy platform that is based on Ethereum and was launched by Energy Web Foundation (EWF). Origin is their initial app that focuses on enhancing and simplifying origin markets’ certificates for renewables. Origin is a platform that allows smart meters that exist on solar PV to communicate within the grid.