Are We Ready for Blockchain to Drive Our Energy Sector?

To reiterate, P2P energy trading is a new and improved solution- just a decade after Blockchain tech took us by hold, mind you- to fairer consumption of energy and energy distribution. Instead of energy remaining purchasable from a multinational organisation, instead, it would become purchasable from other energy consumers – who, under the improved system, would become prosumers– the title given to someone who goes under the label of both a producer and consumer of electricity at the same time.

Say for example, neighbour-to neighbour trading, where a neighbourhood micro-grid allows participants to buy and sell energy in their own peer to peer network. Effectively, this means you’d have the opportunity to sell to your neighbour any excess power you made, rather than returning to the utility company instead.

AS a consumer of electricity, right now the system demonstrates a high level of potential for error, fraud and a lack of transparency. For example, to generate a unit of electricity, a power plant goes through the following steps:

  • Data logged onto a spreadsheet
  • Data is sent to a registry holder
  • Data is logged and a certificate is created
  • Brokers make deals between buyers and sellers of those certificate
  • A subsequent party verifies those certificates post-purchase.

It’s a complicated, messy process that is riddled with pitfalls. So, what if the meter were to upload the data at point one DIRECTLY to the blockchain? Not only would the process simplify dramatically, the possibility of reducing costs significantly is inevitable.

Over the last few years, the number of small to medium sized distributed generators – eg solar panels and powerhouse batteries, have tapped into the grid for energy supply. Flaws in this system come down to inefficiencies in payment from buyer to producer, a problem which Blockchain tech is expected to dissolve, with immediate payment systems that make it easier for businesses to begin generating immediately.

We’ll be focusing more on the ways Blockchain tech will work so well when it comes to the challenges of being an energy consumer and becoming an energy prosumer. Stay tuned to our blog for more information about this fascinating leap in the way we do big business.

Do you have questions about blockchain tech right now? Feel free to get in touch with our team. Blockchain Australia are excited to share our passion for blockchain tech and the exciting changes it represents in the business landscape today. Call us on 1300 462 562 today.