Blockchain Technology in Energy Sector
Blockchain technology, famous for its use in cryptocurrencies, also holds the potential to revolutionize the energy sector. Beyond just digital currencies, the blockchain may open the door for peer-to-peer energy trading and more efficient energy markets at local levels.
Potential for Peer-to-Peer Energy Trading
The blockchain’s capability to handle a high volume of transactions securely and affordably paves the way for local-level markets where consumers can buy and sell energy to each other based on real-time price data. As more consumers start generating their own power through rooftop solar panels, the potential for peer-to-peer energy trading becomes more viable.
Current Limitations and Future Possibilities
Currently, consumers can only “sell” electricity back to their suppliers in the form of reduced bills. However, the future holds the possibility of every electricity-using, storing, or producing device being able to trade energy with others through the blockchain. Devices such as batteries, air conditioning units, and solar panels could participate in this energy trading system.
Obstacles to Overcome
Despite the momentum in the energy blockchain space, there are obstacles that need to be addressed. The wider penetration of technologies like smart meters, which only slightly more than a fifth of UK homes currently have, is essential. Additionally, concerns about the amount of energy blockchain technology uses must be addressed. The Energy Web Foundation (EWF) claims that its blockchain at commercial scale will only use the same amount of energy as a medium-sized office building.
The Energy Industry’s Aversion to Risk
The energy industry’s aversion to risk may also prove to be a significant bottleneck in the adoption of blockchain technology. Joanna Hubbard, chief commercial officer of energy-blockchain startup Electron, compares innovation in the energy sector to open heart surgery on a living patient and emphasizes the need for caution.
Looking Ahead to 2019
Despite the obstacles, 2019 may bring advancements in using blockchain technology to drive innovation in the energy sector while maintaining stability and safety. Companies and organizations are working to make the potential of blockchain technology in energy a reality.
In Summary
The potential of blockchain technology in the energy sector opens up exciting new possibilities for consumers, producers, and energy markets at the local level. While there are current limitations and obstacles to overcome, the momentum and determination of startups and organizations in the field indicate progress for the future of energy blockchain technology.
I have over 10 years of experience in the field of cryptocurrency and blockchain technology. I have attended numerous conferences and events around the world, and my work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and Yahoo Finance.
