Blockchain, the database that underpins bitcoin, could alter the ways electricity is bought and sold around the world. Ever since its inception, Blockchain is applauded for a growing record of all transactions stored and streamlined on every single device on the network. Since each device keeps an eye on the other to detect any kind of double-dealing, it hardly becomes possible to make any kind of changes, even by its own designers and programmers. Many investors have gathered towards the blockchain application because it cannot be manipulated even by the government authority.
Other than revealing its favorable side to areas of crowdfunding, data storage, real-time ride sharing and rights management for music companies, Blockchain is now prepared for its audacious impact on solar energy markets. Blockchain technology is now open to create decentralized and real-time markets that could scintillate investment in renewable and low-priced energy.
TransActive Grid, a partnership between LO3 and decentralized application startup ConsenSys
Brooklyn-based startup LO3 recently came forward with a technology that allowed a New York resident to generate solar power and distribute a certificate for that energy to his neighbor. TransActive Grid, a joint venture between microgrid developer LO3 Energy and blockchain technology developer ConsenSys is a top project which includes layers of smart meters (hardware component) and software using the smart contracts and blockchain to offer a non-repudiable and cryptographically secure history of automated transactions.
It supports energy when one person wants it and the other person has it. This calls for the introduction of transaction on a peer to peer basis wherein individual consumers and producers in a microgrid are a great part of how a community microgrid can function.
The idea is that through a combination of microgrid concept and Transactive Grid payment infrastructure, neighbors will easily be able to write smart contracts on the blockchain and choose their energy supplier. This could also help them decide what kind of energy they want to buy and even who they want to sell or give it to.
This project is expected to change the way we consume and generate electricity. Built on the blockchain technology, it deals with buying and distributing electrons generated by solar panels. No central authority is required in this energy market.
Re modernizing the way energy is bought and sold
The project’s long-term vision is to radically change how electricity is bought and sold and at the same time it encourages the local economy through renewables. In addition to generating benefits, this consensus-based microgrid model could have a lower impact on the environment. Energy generated within the neighborhood microgrid would involve the use of less massive infrastructure, thereby making it more of a cost-effective and sustainable option in the long run. These locally based grids could one day appear as an emergently required backup to the centralized system.
The development of a connected network of distributed energy providers will also maximize energy efficiency and let participants manage their own resources. This new business model is all set to disrupt the traditional way of consuming electricity, however, if seen as a whole it could design green jobs, and generate more incentives for ordinary people to switch over to sustainable energy- something that is for the betterment of universe too.