The objective is to efficiently manage the exchange of energy in smart networks, using smart contracts and blockchain to store, verify and maintain transactions
The diversity of commercial sectors that can be supported by blockchain technology is increasing worldwide. Starting from the trade of food products, the record of medical histories, the possible follow-up to the changes of the pieces of airplanes and even the commerce of energy peer to peer (2p2) can be supported with the technology of the cryptocurrencies.
The international electrical engineering company ABB recently launched a blockchain pilot plan to explore how technology could promote and improve the trade of peer-to-peer (p2p) energy, as reported by specialized media in the technological world.
“The way people consume and use their energy is changing. Consumers who use their own photovoltaic systems are studying how they can produce and use the energy they create, as well as how they can share any excess energy between neighbors, communities and the wider network”, said Giampiero Frisio, Director of Smart Power at ABB.
The objective of the initiative is to get the project investors ready for the use of blockchain technology. In this way, participants in the energy market could reduce both capital costs and operating expenses. Blockchain could also facilitate faster transactions and automatic payments.
Association with Evolvere
To implement the project, the Swiss energy group ABB partnered with the Italian company for public services Evolvere to deploy a blockchain that it developed with its partner Prosume, which is a platform with a decentralized and self-regulated monitoring system for the exchange of different forms of energy.
The pilot will enable transparent and secure p2p energy transactions, investigate the role of blockchain technology in the smart network market and facilitate energy trade transparently and securely.
In this sense, Frisio commented: “We are willing to work with organizations such as Evolvere, to test the potential of blockchain technology in solar systems, which will give us a powerful platform for future energy exchange solutions”.
The ABB representative added that the Evolvere project has allowed them to develop “viable and proven solutions” for the market, which has new dynamics and regulatory frameworks for blockchain technology.
Both companies revealed few details about the project. Until now, it is known that smart networks would be based on the ABB Ability digital services platform and the group’s portfolio of investors. This includes its UNO-DM-PLUS solar investors and REACT 2 investors. This ABB Ability platform could facilitate the creation of smart contracts directly in the group’s investors.
More Blockchain-Energy Projects
The blockchain technology has already been used in the field of electric power. US blockchain company Data Gumbo Corp. raised USD 6 million from important energy companies, including the national oil and natural gas subsidiary Saudi Aramco, to improve the oil and gas supply by enabling automated payments.
In April, Austria’s largest energy provider, Wien Energie, developed a blockchain-driven refrigerator in partnership with technology giant Bosch, to increase the interest in sustainable consumption.
The Japanese provider of photovoltaic modules Kyocera is testing the possibility of using accounting books in a virtual power plant, which is based in The United States, using blockchain technology.
ABB has operations in Europe, North and South America, Asia, Africa and Australia. In 2018, the company had an operating income of more than USD 28.5 billion. According to ABB, its new project could allow other companies of the energy sector to reduce the costs of the Capex and Opex projects. In this way, renewable energy businesses without subsidies through a sustainable world can be accelerated.
By María Rodríguez
