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2019 will see more blockchain-based energy exchange systems, EWF is about to launch a sector-specific blockchain and there will be more combinations of blockchain and IoT technologies. A possible disadvantage for the industry could be scalability and performance problems.
Market Research Future (MRFR) predicted that the global blockchain in the energy market could be worth more than $ 5 billion by 2023.
Blockchain technology can help reduce inequality and energy inefficiency and allow consumers to buy and sell energy directly from other consumers.
Energy companies can take advantage of the blockchain to impact on capital expenditure, security, operating costs and risk management.
In 2018, the energy industry saw various blockchain-related initiatives. And much more is being prepared. We have identified 4 blockchain-based projects that we think will create tone in the energy sector this year.
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Blockchain-based energy trading systems
A UK consortium led by blockchain developer Electron plans to start testing an "eBay energy" during the first half of 2019, said Electron COO, Joanna Hubbard.
Electron and its partners, including multinationals like Siemens, have been working on an energy exchange system in the last two years. It is supposed to be a shared market for energy resources that is sensitive to price signals. The system will be based on a blockchain and does not require a central coordinating entity.
Apart from their big project, Electron is on our list because it stands out as one of the few companies with a co-founder (Jo-Jo), in an environment dominated by men at the top of hierarchies.
In addition, they decided not to conduct an ICO, preferring instead to seek investments from "heavyweights" such as the Tokyo Electric Power Company, which started investing in them a year ago.
With hindsight, this decision plays a vital role in adding value to their credibility today, in the post-ICO scams of the world.
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Industry-specific blockchain technology
Scalability and performance problems of blockchain to the state of art such as Ethereum make it difficult to use the technology for large-scale energy trading.
The Energy Web Foundation (EWF) has worked on a scalable open source blockchain platform, specifically designed for the energy sector. It addresses the specific needs of the industry's regulatory and operational market, says Peter Davies, CEO and founder of the residential energy blockbuster company Verv. By building the "digital DNA of the grid", EWF is trying to apply a blockchain specially created for the energy sector.
EWF is planning a blockchain blockchain that allows private energy producers to sell their energy around the world. A large number of companies, including many traditional companies, are already part of the network. The company plans to release the chain genesis block by the second or third quarter of 2019.
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Blockchain and IoT
The combination of blockchain technology and Internet of Things (IoT) technologies could significantly improve the way we trade and consume energy.
Devices can autonomously purchase and sell energy at optimal times, optimize device energy system settings, and monitor and analyze the performance of energy-consuming devices.
The Microgrid of Brooklyn, for example, involves a micro-network of communities that allows its participants to buy and sell energy from one another through blockchain technology. As projects like this have proved effective in 2018, they will be implemented on a larger scale in 2019.
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P2P energy trading could reach its limits
In 2018 there were several attempts to create P2P energy trading platforms that link producers and end consumers through blockchain-based applications.
Power Led's blockchain-based energy trading tool is the most important example. The Australian energy trading platform has launched projects in several countries, including Thailand, the United States and Japan.
The more P2P energy platforms expand, the more they will address scalability and performance issues. Therefore, instead of further expansion, companies will focus on technological improvements and will promote their business models in 2019.
"Blockchain is not a mature technology, instead of focusing on futuristic use cases like peer-to-peer trading, now it's time to focus on doing basic things: regulatory compliance, future-proof technology scalability and user experience friendly, "says Joan Collell, COO of FlexiDAO.
According to Molly Webb, CEO of Energy Unlocked, "2019 will be a year in which an initiative like this will start to have an impact in the real world".
That said, the successful launch of projects such as EWF's energy blockchain could solve scalability issues and pave the way for P2P energy trading. Not only could it help increase the use of sustainable energy, it would also increase awareness among consumers of how they are spending their money, not to mention how they can earn by selling their unused energy.
However, 2019 has a lot in store for us. We'll see.
