Utilizing the Power of Blockchain in the Energy Sector
CN, July 11, 2017 at 12:24 BST
The traditional structure of the power sector is still in place in most countries of the world, where one electricity utility company controls most of the generation, transmission, and distribution of electricity.
This structure, however, has limitations integrating renewable energy sources into the public grid, is prone to electricity theft causing billions of dollars of losses, and may not be resilient enough to withstand environmental problems. To improve the efficiency and security of energy being delivered to houses, microgrids are being deployed in several communities.
Built for a future decentralized autonomous energy (DAE) community, Energo promotes an ecosystem based on distributed generation. At its core are blockchain technology and a decentralized system designed for the measurement, registration, transaction, and settlement of clean energy in local microgrids.
ICEnergo is designed for a new future of energy distribution, connecting energy producers of varying capacities and energy consumers of diverse needs. Clean energy is first consumed within the microgrid community through energy transactions between neighbors, which are made efficient, secure, and without an intermediary through blockchain; supply is only switched to the public grid if the energy in the microgrid is not enough to meet demand. This solution allows energy producers and retailers to experience profit boosts while energy users see their costs slashed.
With such a vision in mind, Energo is becoming a channel for the construction of a future smart grid that promotes information and value flow while creating a DAE community.
Blockchain technology is becoming a stepping stone for companies and utilities as the decentralized energy revolution happens. The technology allows any asset to be transferred in a reliable, low-cost, transparent, and immutable way without a third party; for the power sector, this can create an ecosystem where utilities are working with microgrids sustained by renewable energy to satisfy a country's electricity demand.
Blockchain’s role in the power sector is enabling a future where electricity is traded between buildings and where consumers can choose where their energy comes from and in what amounts. The technology’s security and transparency make everything easier, from billing to energy trading, taking one step further towards a smarter, more distributed power system.
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NameLathika Chandra Mouli
Email address[email protected]