- Researchers in Ireland have proposed a blockchain-based mechanism to improve renewable energy trading
The Economic and Social Research Institute (ESRI) in Ireland has presented a framework for the forward selling of renewable energy in the form of nonfungible blockchain tokens. The working paper mentions the use of smart contracts for real-time offsetting of the token holders’ energy consumption, for effective management of energy in a distributed framework.
The paper mainly investigates the forward selling of electricity between energy generators and consumers in a cyber-physical network. The report states:
” …power contracts for future delivery are transacted on the blockchain. These claims on future generation could be embodied as nonfungible blockchain tokens, with future electrical power delivery as the underlying asset. Therefore the claims can be qualified as a cyber-physical forward contract for a blockchain application within a decentralized electricity markets.”
The framework seeks to simplify the complicated interactions in the energy distribution network. P2P framework for forward trading can offer coordination in the complex network and subsequently stabilize revenues during the shift to sustainable power plants.
Several firms have been part of the paradigm shift to blockchain to add value to the electricity market. BitcoinNews.com has already reported an analysis of blockchain-based energy trading as opposed to centralized markets. A lot of startups have adopted blockchain as a foundational technology to meet the various utility needs such as bill settlements, charging and authentication of electric vehicles. Moreover, the technology has time and again established viability by delivering quality services to support utility business models.
Image Courtesy: Pixabay