Implementation of the Blockchain in the energy sector
by Bhavin Gajjar
Posted on May 03, 2019 at 15:00 PM
Are you aware of Blockchain technology? No worries, let me quickly describe it to you. Blockchain is a distributed ledger of growing records. These records are called ‘Blocks’. These blocks are linked using cryptography. That’s true that the Blockchain came into the picture because of cryptocurrency. However, this Blockchain technology can be applied to many other industries as well.
Do you think it is really possible to make use of Blockchain technology in the Energy sector? Let’s see.
Bitcoins are not the only application of Blockchain. There have been some use case applications already developed using Blockchain technology like automated bill payments, electrical vehicle charging and sharing, etc. Also, there has been an implementation of Blockchain technology in the energy sector especially solar energy. There has been a term called ‘Net metering’ used in the solar energy sector.
The traditional Net metering facilitates solar users to sell the excess electricity back to the local energy company. But there is a disadvantage of the traditional Net metering like the local energy companies would resell the energy to residents at higher prices. So, as a solution, there is a Blockchain-based Virtual Net metering for off-location solar users.
Let’s see some of the benefits of Blockchain-based Virtual Net metering.
- Reducing utility bills and carbon emissions
- Creating economies of scale and lowering the per-unit prices
- Letting the flexibility of implementation in the different areas too
- Solar user can “subscribe” Or “unsubscribe” anytime
Apart from this “Net metering”, Blockchain technology has the potential to attract new opportunities for the inventions in the energy sector. Let’s quickly go through some potential applications of Blockchain;
Bitcoin Bill Payments: BAS Nederland - was the first energy company in 2014 which started accepting the bitcoin bill payment.
EV Charging & Sharing: In 2016, one German Power Company and Automotive technology company created blockchain-based eWallets for electric cars with the help of Swiss bank UBS.
Wholesale Trading: Wholesale market trading is one of the potential Blockchain-based applications. In the month of November in 2016, at EMART energy trading conference in Amsterdam, the first event of the blockchain based European energy trade occurred.
Startups: There are now notable startups which are using blockchain technologies to handle various applications. For example, the Volt markets company intends to use Ethereum smart contracts to issue and track (RECs)Renewable Energy Certificates.
To conclude, Blockchain technology can benefit the energy sector as it provides novel solutions for empowering small renewable generators. Supported by the enforcement of new policies by the Indian Government for the implementation of efficient energy resources, Bright Solar is well-equipped to touch and enrich millions of lives in our country by installing more than 3000 solar water pumps.