Progress of blockchain technology in the energy sector
According to reports coming from a US based firm, it is in need of renewable energy migration. This company called the Clearway Energy Group has initialised a pilot program in order to start the trading of renewable energy using the blockchain technology.
The Clearway Energy Group has now teamed up with a company called Power Ledger. Which is a company that uses the blockchain technology in order to achieve peer-to-peer energy trading from solar panels.
According to the report, the company’s initial projects included a few energy generation of about 1-5 megawatts in Massachusetts followed by a Midwest Project. Which was a 20 megawatt energy generation project.
Users or providers of Renewable energy in the US, use the US Renewable Energy Certificates (RECs). Which is valued at over 3 billion USD with 3-10% additional transaction costs for completion.
The Co-founder and Chairman of Power Ledger, Dr. Jemma Green has stated that despite these digital availability of these alternatives that is used to track certificates. It makes a pathway for further costs increase with broker and contracts that apply to state boarders. This new platform surpasses all these limitations and challenges in terms of costs and efficiency. This has pushed the company to extend its services by early 2020. The announcement of the new platform from Power Ledger was made on June 18 2019, which is a peer-to-peer network energy trading platform in Austria.
Blockchain the in energy industry
There are currently a lot of research being done on the Blockchain technology for its use in the Power Utility sector and for applications such as energy credit management, green energy, prepaid smart meters and asset optimisation.
The blockchain technology has proven to be a great alternative in order to start adding value to the energy market. Which is extremely different from traditional energy markets and methods, which has a lot of limitations to it.
There have been a few start-ups that have adopted the Blockchain as one of its fundamental technologies for utility needs such as bill settlements, authentication and charging of electric vehicles. This technology has established itself as a viable option to deliver quality services that supports utility business models world-wide.
Shell and BP have also taking a good look at this technology for energy trading that is expected to drop costs by 40% with its implementation. And Energy companies in the Middle East have taken considerable steps to implementing the blockchain technology in order to push renewable energy forward in the coming years.
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