The 21st century is all about innovation and development. Various changes and transformation are happening around us. Energy is the key driving force of all the development. Whether we talk about blockchain or our daily life, energy in every form is the running force behind it. When we are saying that it is an important source, then we must conserve it, and there is a various transformation in this sector as well. This transformation has not only led to energy conservation but also developed a new concept which is known as peer-to-peer energy trading.
Yes, we are talking about trading the energy. It is a paradigm change which the power system operations are witnessing. Under this, people can generate their energy from renewable sources and share it locally. This energy can be produced in houses, offices, and factories. This might sound astounding to a few but, the fact of the matter is that this is the reality and is a popular concept in many nations across the globe.
Reason for the growth of peer-to-peer energy trading
The surge of solar energy and battery storage system is acting as a catalyst and pushing people to follow the concept of peer-to-peer energy trading. With the help of this system, the consumers can benefit by using the excess energy produced by others. The consumers producing extra energy produced by them and make a profit.
Here are the benefits of peer-to-peer trading :
No middleman, people producing energy can directly sell it to others on their terms and conditions
- Both the supplier and the receiver are in the state of benefit.
- Transparent dealing with other consumers
How does blockchain help?
When we are talking about latest developments then, how can we miss blockchain? It is the revolutionary technology of 21st century which is laying the foundation stone for future developments. Blockchain finds application in almost all the business niches, and here we will be exploring how will it aid the peer-to-peer energy trading.
It is a distributed digital ledger which has all the information stored in chronological order. This information or transaction as we as is immutable, visible to everyone in the network and is decentralized. Blockchain underlays the foundation of Bitcoin which is the pioneer digital currency. It all started with Bitcoin, and now Blockchain has become a name for every possible new development. On this platform, there is only sharing of information and not copying.
In the normal scenario, many contractors for energy can get complicated. The traders call each other mail or send messages. This is time-consuming, with the help of Blockchain the user can bid on blockchain and the sellers can see it and responses.
What is happening in this field?
We know that blockchain can be useful in trading energy as well. It can make the functioning more transparent, seamless and less time-consuming. Australia has shown great responsibility towards the same. The AGL and ARENA are using blockchain technology, allowing households and business to share the power generated by them with each other. It is a pilot project which has started in Melbourne.
Power Ledger is another company which is working in this domain. It is a blockchain based peer-to-peer energy exchange platform. The aim of this system is very clean; it wants to create a power system which is long-lasting, zero-caron and low cost.
EnerChain, this is the world;’s first wholesale energy trade tool based on the blockchain.
The idea behind using blockchain as a platform for energy trading is to restrict the interference of middleman, cut down the processing fees, finish the delays and most importantly create a transparent system where people can trade without worrying about hacking and data alteration. Blockchain offers all these features, and hence, it has become a popular tool and a great alternative to the traditional energy trading mechanism.
The way ahead
The crux of the matter is that with the development of such technologies, consumer are finding great ways to escape the rising utility prices and at the same time, these new developments are creating a seamless platform for all kind of business functioning. Blockchain and its application in peer-to-peer energy trading will help in creating an open and transparent system for the exchange of energy.