The list of blockchain technology, Bitcoin, Ethereum, coins, tokens, Cryptocurrencies... continues to grow. With Bitcoin soaring to new heights, these terms are everywhere, and the world has given full attention to what blockchain technology can do. Blockchain technology can be applied in many fields, even in the traditional energy and power fields.

Through blockchain technology, energy trading will be open to all consumers around the world, payments can be secured through cryptocurrencies, and contracts will be just numbers. All transactions may be verified by thousands of "witnesses". If public links are used, potential fee-free models will be introduced. The beauty of this radical approach is that every transaction will be recorded in a tamper-proof manner.

Since the process of validating the transaction is through a large number of distributed computing system data patterns, rather than trading on a limited central system, trading the energy on the blockchain will allow for an “instant” approval of the transaction.

There are free possibilities for direct transactions between consumers and producers (even those who produce goods and sales). The current trading pattern is this: the trader executes the transaction, the bank confirms whether the account has enough money to pay, and the central power system supervises the monitoring and recording of the transaction. The advantage of blockchain technology is that transactions can be conducted directly without the need for supervision by the central authority or access by banking institutions. The result is that the cost of intermediate fees is greatly reduced.

Blockchain Grid Transaction Introduction

At present, the operation of grid trading requires the existence of various roles, including manufacturers, operators, distributors, and suppliers each completing its own work. People in various roles communicate with each other in one way or another.

In the blockchain model, electricity producers, electricity sales departments and consumers can achieve "direct connection." The relationship between the three is constrained by the so-called "smart contract", which is essentially a special kind of computer agreement that restricts the parties to energy production and sales. It is worth mentioning that, through smart meters, it is possible to perform predictive calculations on the electricity demand of each consumer, and at the same time, the power plant can also basically provide supply expectations. Production expectations and consumption expectations are efficiently calculated through network centers. This application model may, in turn, revolutionize the distributed power industry. Home-distributed devices that could not have been dynamically traded have access to a large network in the future. In general, "blockchain + power" can bring trust to the power system, inspire business model innovation, enhance network security, and make the entire power system ecosystem more secure and efficient.

From the perspective of environmental protection, we know that environmental assets such as carbon certificates and other green power certifications are originally difficult to identify and certify, and the pain points of transaction liquidity are too small. Through the blockchain trading platform, consumers can know exactly “whether or not the origin is clean” for each kilowatt hour of electricity. If “unclean,” how can it be “unclean”? This means that every kWh has a "birth certificate." Do not underestimate this "birth certificate", which can help us to deal with the current tricky issues of renewable energy and carbon emission permits in a tamper-proof and transparent way.

Start-up companies concentrated in developed countries

The gradual maturation of energy blockchain technology has promoted the influx of capital into the corresponding start-up companies. At present, such companies are mainly concentrated in countries such as Europe, America and Japan. For example, Conjoule, a German company, acquired Tokyo Electric Power Co., Ltd. (TEPCO) in July of last year. ) Leading 4.5 million Euro A round of financing. Conjoule focuses on the development of blockchain point-to-point energy trading solutions. Its main business location is to provide low-cost trading platform solutions for rooftop PV producers and buyers interested in PV. The reason why Dongdian invests more in this may be that it sees a large amount of rooftop PV production capacity in Japan.

PowerLedger from Australia is a very well-known energy blockchain company in the region. As of last November, the company’s project has attracted 15,000 participants and $24 million.

PowerLedger has already tested several blockchain platform projects in Australia and New Zealand. Austria's GridSingularity is the main European developer of the application of blockchain technology to the energy sector. Last May, the Rocky Mountain Institute (RMI) partnered with GridSingularity to establish the Energy Internet Foundation (EWF), which aims to promote the commercial deployment of blockchain projects in the energy sector. The British startup Electron, established in November 2015, with the help of Siemens and the British National Grid in last October, Electron received the support of the government and expanded the scale of the platform.

Traditional energy companies accelerate

Enter the blockchain domain

Compared to the sparks that start-up companies started to make, the rich and powerful traditional energy giant's handwriting is an irritant trend. In November last year, the two major international energy giants BP and Shell announced plans to establish a blockchain Interbit platform through Canadian blockchain startup BTL to trade natural gas and oil in a transparent and secure ledger. Create a blockchain digital platform based on commodity trading. The platform is expected to come out at the end of 2018. Other participating energy companies include: Norway's national oil, commodity trading giant Gunwo, Koch Supply & Trading, a subsidiary of the Koch Group, energy trader Mercuria, ABN Amro, ING Group of the Netherlands, and Societe Generale.

We assume that trader A initiates an energy transaction with trader B on an online exchange or through a broker. After the transaction ends, A and B enter the transaction details in their respective IT systems (ETRM systems). The backends of both parties retrieve the transaction information from the ETRM system and exchange data with the brokers to confirm and unify the transaction information. This process still relies on traditional communication channels (mail, phone, fax) and excel forms. Transactions are also physically settled through transmission system operators (TSOs) or natural gas pipelines. Although the degree of standardization can be greatly improved through their respective IT processes, there are still incompatibility and trust issues between the communication systems of different companies' IT systems. BTL proposes to make adjustments by deploying shared books between traders. The back end does not send the transaction information by email, but records the transaction information on the blockchain, and the other party can verify the fact.

This system allows traders to no longer store their own data, but rather to share secure media. The stored information is transparent, accurate, and verifiable, speeding up workflows and reducing human error. BP has not concealed its prospects for the application of blockchain technology in the energy field and has written a special book on its official website: "The blockchain may change the entire industry, change the way transactions are handled, and how to handle and clear transactions. ”

Domestic energy blockchain has broad prospects

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