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Iberdrola uses blockchain technology in the renewable energy sector

January 19, 2019 at 13:23 // News

The first test to ensure the renewable source of energy supplied was made with the financial entity Kutxabank, which was able to track the actual time required for the process and the energy source provided by Iberdrola from the point generation up to the place of consumption.

Iberdrola, the Spanish multinational public power company, has created a project that will greatly contribute to speeding up the decarbonisation process using the blockchain to ensure that the energy supplied to the user is 100% renewable. The first test to ensure the renewable source of energy supplied was made with the financial entity Kutxabank, which was able to track the actual time required for the process and the energy source provided by Iberdrola from the point generation up to the place of consumption.

Renewable energy was produced in the wind farms of Oiz (province of Biscay) and Maranchón and in the hydroelectric plant of San Esteban. The clean energy from these points has been exhausted at the Kutxabank headquarters in Cajasur in Córdoba and in the Basque Country (a geographical region located on the border between Spain and France), according to a
relationship from Neweurope.

Blockchain is an effective way to allocate resources that will provide energy to a particular point of consumption and can even be applied to launch a hierarchical priority order based on points of origin.

It also extinguishes intermediaries because it uses intelligent contracts that become valid and active when both participants carry out their part of the agreement, facilitating the process, reducing costs and improving privacy.

Blockchain technological initiatives

With this type of establishment, the renewable energy certification exercises are speeded up and automated, the certification is provided with a significant level of traceability and the transaction is set in a very transparent and secure way, as it is permanently registered on the platform in such a way that both participants can verify the results correctly.

"This innovation shows us that it is a crucial catalyst in the process of decarbonising the economy, enabling traceable, safe and rapid transactions, in which case the supply of green energy is more efficient, flexible and transparent, which stimulates production and 100% renewable energy consumption ", said Iberdrola.

Iberdrola has launched multiple initiatives using DLT. For example, the company is collaborating with other companies in the industry in a project to test transactions based on DLT in the wholesale energy and natural gas markets.

This establishment allows for peer-to-peer (P2P) transactions without intermediaries. These agents will buy and sell energy directly, will invest in a regulated market and their transactions will have to be recorded on the platform anonymously and in writing to be confirmed by the operators.

In its distribution activity, the DLT plants mainly focus on the certification of data on network efforts with the possibility of impacting customers. This is a progress in the digitization of the network, in the fields of service quality and customer service.

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