How Blockchain Will Transform The Energy Industry

energy

The evolution of technology has changed many industries by making them more efficient. The blockchain technology will be very useful for the energy industry, it will mainly have repercussions on two aspects of the sector.

First, the blockchain will allow for a peer-to-peer electricity trading model, meaning any person or entity creating energy will be able to sell its surplus or buy what it misses. The propagation of Distributed Energy Grids (DEGs) and independent renewable energy sources that connect to the network has helped convert energy consumers into energy producers that are able to sell their excess electricity back to the grid. For example, Grid Singularity is a startup in Europe that is focusing on the exchange of private and granular data among different parties through the energy market. Power ledger is also a good example of how blockchains can transform the energy sector. It is the leading Peer-to-peer marketplace for renewable energy. The whole power grid is ruled by a distributed blockchain represented by a token which is available on Binance among others.

Secondly, the blockchain technology can be used in the energy market to help the consumers make payments. In under developed countries, many citizens don’t have access to a bank account. This causes a problem for the energy companies trying to establish because it is complicated to make a contract with a customer who doesn’t have a bank account.  Some companies already accept cryptocurrency payments such as Marubeni Corporation (MARUY) in Japan. The utility of blockchain can go beyond payments. For instance, a South African based blockchain startup named Bankymoon partnered with Usizo to allow cryptocurrency payments for bitcoin-compatible smart meters located in isolated areas.

A distributed ledger with multiple energy producers and consumers could lead to multiple rates in the energy market instead of having the one rate currently in place. This is why the blockchain technology is only at its beginning in the energy market and many changes might happen rapidly regarding the energy ecosystem.

2 thoughts on “How Blockchain Will Transform The Energy Industry

Leave a Reply