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Blockchain Technology in Distributed Energy Domain
Energy
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What is blockchain?
A blockchain can be defined as an assembly of digital data with a shared and distributed database that stores a continuously expanding record of transactions and their chronological order. The transactions are assembled into larger aggregations, called blocks, which are chronologically and cryptographically linked to preceding blocks making a chain of records that determines the sequencing order of events or the ‘blockchain’.
How blockchain will impact the energy industry?
Blockchain or distributed ledger technology has been picking pace significantly across the clean energy sector. In recent times grids have become like a web that is complex and difficult to manage, with a growing portion of distributed energy generation segments (such as rooftop solar), multiple internet-connected devices (such as smart appliances), and then there is load surge from the electric vehicles. Blockchain technology can assist in operating these complex power grids with high penetration of variable distributed generation and flexible demand-side resources in a smoother, automated way, all with lower transaction costs.
Blockchain technology helps the Distribution System Operators (DSOs) to optimize grid management by operating all connected devices through automated smart contracts, enabling flexibility and real-time pricing. Blockchain enables the consumers to become prosumers by helping them to monetize their excess electricity (generated by rooftop solar for example) by securely recording data and enabling the payment transactions automatically, through smart contracts built on platforms such as Ethereum.
Possible blockchain uses in the energy sector
Latest developments
There are various examples where blockchain technology has been penetrating in managing distributed energy generation. One such example is the ElectraFlex project developed in pain’s Catalonia. ElectraFlex is one of the first decentralized flexibility platforms tailored for the customized needs of a distribution system operator (DSO).
Another example is European TSO Equigy’s blockchain-based crowd balancing platform. Equigy platform emerged to pick up the growing penetration of various pockets of distributed energy resources for balancing the grid.
Then there is Power Ledger that has introduced blockchain into the energy sector, in services such as four grid transactional services, peer-to-peer energy trading, virtual power plan and flexibility services, power purchase agreements, and renewable energy certificates.
Another development that is taking place on American soil is the blockchain flexibility platform developed by Silicon Valley Clean Energy. In the latest event, Silicon Valley Clean Energy has selected Electron to develop a prototype of an SVCE-owned local marketplace to ensure there is load flexibility from distributed energy resources to add value to the customers and broader SVCE community.
In India, Tata Power along with India Smart Grid Forum and Australian technology firm Power Ledger has developed distinctive peer-to-peer solar power trading projects in New Delhi. This project enables the development of an integrated ecosystem of grid-connected, distributed energy resources.
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