[ad_1]
Blockchain technology is having an impact in all areas. The energy industry is no different and research is underway to show how much of the energy sector is exploring the blockchain.
In its core business, the exchange of blockchains in the energy market should offer the benefits of a decentralized market, facilitate a peer-to-peer exchange market that allows consumers to negotiate directly with lower transaction costs and increase the transparency of the network.
How the energy industry is involved in the blockchain
The United Nations World Energy Council (WEC) undertook some research in 2018 in collaboration with PricewaterhouseCoopers (PwC). They talked to 39 energy companies all over the world.
These are the key results of the World Energy Insights Brief 2018:
- In 2017, approximately 100-300 million dollars have been invested in over 100 blockchain applications related to the energy sector
- The energy sector has seen the growth of global investments in digital infrastructures increase by over 20% per year from 2014, reaching $ 47 billion in 2017
- At the time the report was published, there were 122 blockchain start-ups operating in the energy space that had raised over $ 324 million in 2017 alone
- About 45% of the companies interviewed are experimenting with peer-to-peer (P2P) projects
Use cases of energy-related blockchain projects
In the energy sector, there are many applications that facilitate blockchain trading. Here are just three examples:
WEPOWER
Start-up blockchain WePower recently focused on a year of data on the Estonian electricity grid. The project facilitates localized trading of blockchains.
This hourly data of 700,000 households were aggregated by address and converted into 39 billion smart energy tokens. Tokens are exchangeable and can be sold in the local energy wholesale market.
SP Group
The SP Group has launched one of the world's first blockchain-based renewable energy certificates (REC) markets.
The new market allows local and international organizations to participate in the REC trading blockchain.
Fremantle
The Australian city of Fremantle has announced a process in which residential properties will be able to use blockchain trade in relation to solar energy.
The RENeW Nexus project is managed through Curtin University and is supported by the Australian government through the Smart Cities and Suburbs program.
Large-scale adoption of blockchain trading
We can see that there are many cases of blockchain projects in the energy sector and also examples of blockchain trading in the sector. So far, most of these are localized or on a small scale.
The WEC / PwC research is interesting. The energy sector executives surveyed in general have concluded that although they are studying and developing a lot, they are still far from complete commercial implementations. So while blockchain has great potential, it takes more time before a large-scale commercial launch.
Obstacles to the adoption of blockchain
This is not something that is specific to the energy industry. Coin Rivet has recently explored the barriers to the adoption of blockchains in the broadest sense.
PwC also interviewed 600 executives from 15 countries on their use of blockchain technology. This was not limited or targeted to a specific sector. Here are the main results of the survey:
- 84% of respondents confirmed that their organizations have a certain involvement in blockchain technology
- 52% are under research or development
- 25% are in the pilot or live phase
They also asked the respondents what slowed the adoption of blockchain in business:
- Regulatory uncertainty (48%)
- Lack of trust among users (45%)
- Ability to bring the network together (44%)
This research is similar to the research on energy: great potential, many research has been done, but a large-scale commercial launch is still far away.
For guides on cryptocurrencies, exchanges and blockchain technology, click here. Be sure to take a look at all the latest crypto and blockchain news.
