BLOCK CHAIN TECHNOLOGY – USE & APPLICATIONS IN THE ENERGY MARKET
By ADMIN| October 30, 2018
CATEGORY : BLOG | BLOG DYNAMIC | BUSINESS TRAVEL | LATEST NEWS
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In simple words, a specific number of consecutive transactions are collected together to form each block. This forms a distributed, digital transaction technology known as block chain technology. These blocks are interlocked with each other in a chain by using their hash values. It enables the secure execution of smart contracts over peer-to-peer networks independently from a central authority such as an energy utilities or company. This is not possible by an individual participant not even by a collective effort.So, how does the block chain work? Let’s recall a few key features before we get into its applications:
- Block chain keeps a record of all data exchanges: This record is referred to as a “ledger” in the cryptocurrency world. Each data exchange is a “transaction”.
- It utilizes a distributed system to verify each transaction — a peer-to-peer network of nodes.
- Once signed and verified, the new transaction is added to the block chain and cannot be altered.
Block chain - For Trading Renewable Energy
Block chain technology works as a tool for managing continuous growth of complex electric power systems, even as more renewable energy flows into the grid. To provide a solution for it, diverse entities have been recently launched ventures to harness block chain in different ways, including both for-profit and nonprofit undertakings. Almost half of them use a public block chain and the other half use private or consortium block chains.Let us check the whole process of block chain in power transactions.- When prosumers have powers beyond their needs, they generate power and feed into grids with the help of block chain technologies.
- Electricity flow into the block chain.
- Matching Algorithms for buyers and sellers in real time based on preferences.
- Once electricity is delivered or power exchange is done, payments are made in real time.
- Other nodes in the network verify the transaction.
Block chain – Use & Applications In According To Its Capabilities Levels
Foundational Technology:
As a foundational technology, block chain disrupts the existing utilities industry ecosystem. Its core capability is transactional security and reliability, in the form of immutable record. Thus, block chain technology network can help readily adopted for relevant utility processes.Block chain applications relevant for utilities include:- Bill pay
- Authentication of the certification of solar power
- Smart Metering
- Block Charge-EV Charging & Billing Solution
- Microsystems
Sustaining Business:
Block chain (including permissioned, private ledgers) serves as a solution for utilities that overcomes the investment and systems integration challenges that comes while implementing the technology as a business-critical service. At this level, the traditional utility technologies must coexist with block chain and drive customer/internal business units to sustain the investments made in the technology.- Micro grids
- Independent power producer (IPP) settlements
- Grid settlements and wholesale market trading
Robust and Scalable
Block chain add business value to the structure and market models of emerging utility markets such as local energy markets, virtual power plants (VPP) and energy communities. Here, a traditional utility or supplier plays the role of business facilitator.- Local energy market/P2P energy networks
- Decentralized exchange
- Retail trading and settlement