The power industry is at a quick pace of transformation as utilities embrace new technologies, new generation sources have emerged, and data is being relied on to drive efficiency. Private and corporate customers are leading innovations in distributed power generation. On the other hand, utility strides towards upgrading grid infrastructure to turn the distributed power and smart grid into reality.
But to bring aforesaid to complete fact, a solution is required that could address the arising problems. Blockchain technology seems to be the answer to issues. It is a shared ledger that stores data and transaction data, supported by immutability, encryption, and authentication, bringing transparency and security to the network.
The blockchain seems appropriate because it creates a transparent, auditable, and automated record of energy consumption and generation, compassing energy efficiency and cost savings. And as needed, it holds the potential to help peer-to-peer energy trading between consumers and suppliers, similar to financial trading. There are different anticipated means by which blockchain can rejig the current workflow of the energy sector.
Bill Settlement: Blockchain ledgers can appropriately modify the bill settlement procedure and prepaid recharges of smart meters. Smart contracts can store custom algorithms in program code, which will get triggered when the desired condition is met. Customers can keep commands to recharge or pay bills automatically, and transactions will be recorded for accountability.
Energy Certificate Revival and Customer Shift: Ledgers will give convenience in energy certificate authentication and trading renewable energy certificates. Customer shift will also turn smooth; the same database can be carried forward for supplies whenever a supplier is switched.
Energy Trading: The primary usage of the technology will be observed in energy trading. Wholesale and retail trading will require a secure record-keeping system that automatically keeps track of transactions. The immutability feature will allow all entities in the network to view transaction data but will not be able to tamper with data. Smart contracts—as explained above—will be convenient for settling payments.
Scalability of Network: Blockchain network is extremely scalable, which will benefit distributed energy network to scale to the required. Further suppliers and consumers can easily connect over the web for energy trading, resulting in cheap and sustainable power sources.
