Experts with blockchain education can see the potential of the technology in transforming the sector of renewable energy. We see that the energy industry keeps on experimenting with innovations to improve its functionality and service to the world. For example, implementation of rooftop solar, production of electric vehicles, use of smart metering, and so on. In this scenario, the blockchain platform presents itself as the upcoming advancement that can further enhance the industry. So, let us see what roles it has been playing in the space of the renewable energy sector.
Table of contents
- Blockchain and the energy sector
- Provision of peer-to-peer energy trading
- Electricity data management with blockchain
- Effect on commodity trading
- Influence on utility provider
- Closing Thoughts
Blockchain and the energy sector
The blockchain platform brings the interoperability of systems and smart contracts for the energy sector’s growth. From a joint data by the World Economic Forum, PwC, and Stanford Woods Institute for the Environment, there are over 65 current and emerging use cases of blockchain technology for the environment. Some of the valuable use cases include data management in real-time, new business models for the energy marketplaces, recording renewable energy certificates or carbon credits on the block-chain. Moreover, a DLT model can enhance the utility providers’ efficiencies by tracking the custody chain for grid materials. Aside from this, block-chain technology provides multiple exceptional solutions for the convenient distribution of renewable energy.
You can take up the blockchain certification course to learn more potential applications of block-chain in the energy sector. First, however, the article shares a few use cases to help you understand the role of block-chain in this industry.
Provision of peer-to-peer energy trading
According to the global blockchain expert team, the majority of block-chain energy projects are focusing on establishing peer-to-peer energy markets. Basically, these refer to a shared individuals’ network who buy and trade excess energy available from other members in the market. With the establishment of these energy markets, masses are enjoying the benefits as they remove the interference by central controlling authorities—for example, wholesale entities.
Having the blockchain education in place, the majority of firms are utilizing Ethereum’s enterprise versions. One of the examples is Energy Web Foundation which has been utilizing Ethereum block-chain solutions since the beginning.
Since more nations are reaching energy parity, the renewable energy cost is becoming lower or equal in comparison to traditional retail energy. Moreover, the countries that generate their own energy can trade it with their neighboring countries through blockchain-based microgrids. By microgrid, we mean an interconnected group of distributed energy resources. Furthermore, many blockchain-based energy firms desire more extensive and entirely distributed peer-to-peer grids.
You can learn blockchain online to get the needed blockchain education on microgrids and other relevant topics.
Electricity data management with blockchain
Block-chain can offer customers greater control over energy resources. In addition to it, an immutable ledger can provide real-time and secure updates on energy usage data. The data contains information about the marginal costs, fuel prices, market prices, energy law compliance, etc. A few national governments are looking forward to adopting block-chain energy projects and using Ethereum to track and record energy data. Learn blockchain online from various reliable portals available on the web to understand these projects more deeply.
In the energy industry, corrupted officials can often manipulate the data. However, misreporting can happen unintentionally as well. Whichever the reason is, the financial losses are enormous and can be detrimental to governments and enterprises. Hence, the use of blockchain platforms maintains robust transparency that reduces the risk of data or monetary exploitation.
Effect on commodity trading
Renewable energy and gas trading is another area where the inclusion of blockchain platforms can cause disruption. A huge expense is required to maintain, secure, and update the commodity trading system. Commodity trading needs a massive ledger to record the commodity and trade prices in real-time. Hence, block-chain can be a great solution to this. The block-chain can offer a cheaper option to carry out operations related to recording and tracking energy data.
Moreover, the provisions of immutability and security can facilitate a fair and transparent commodity trading system. Hence, the use of block-chain platforms with deep blockchain education in place can bring incredible solutions and changes. Thus, the need for individuals with blockchain certification is going to be in high demand among energy enterprises.
Influence on utility provider
Electric power suppliers are big and complex enterprises that produce energy through solar farms, power plants, and many other energy resources. These utility providers are keener to share data and information with one another for boosting their efficiency. Therefore, it presents an expectational opportunity to a blockchain platform with the shared ledger. As per the market analysis firms, block-chain can benefit utility providers in the following manner:
- Blockchain-based enterprises may process and verify data from different devices at the microgrid edge before recording the data over the block-chain ledger.
- Next, utility providers can efficiently exchange data and transactions through block-chain. In fact, this process is important to maintain the environment of data distribution among them.
- The DLT can develop a framework to transact energy among various sets of participants.
So, these are the three manners in which the inclusion of a blockchain platform can transform the existing utility provider system.
The energy enterprises in the majority of nations work on a centralized system. But, we can see the industry is experiencing an evolution through the adoption of innovative technologies. It is helping the enterprise to generate, consume and sell energy simultaneously. The installation of solar panels and surplus energy trade via a peer-to-peer transaction through block-chain is a remarkable upgrade. Moreover, block-chain is fully capable of facilitating transactions within a few seconds without any need for central intermediaries. Doing so can potentially enhance the workings of the entire industry.
Check out the BLOCKCHAIN COUNCIL to learn more about what block-chain can do and how it works. Here, you can access multiple blockchain certification programs.