Over the last few months, prominent companies that perform their activities in the energy supply department have successfully experimented with blockchain. It is, in fact, one of the fields with the highest improvement potential thanks to the technology that is, slowly but surely, changing the world step by step.
The latest company to test the blockchain technology for its potential to streamline and optimize processes is Kyocera, a very widely known solar power supplier based in Japan. The firm has established a partnership with LO3 Energy with the intention of trying blockchain-based virtual power plants (VPP) that hold the potential of improving the distribution of energy.
The Promotion of a Low-Carbon Society
The information was made public via a press release by Kyocera, on Monday, February 25 th. The test is scheduled for February 28th, and will server as a foundation for both firms to establish the feasibility of VPPs. The idea, as a whole, is to promote a low-carbon society that functions without a clear need of fuel o carbon emissions, and that is based on a peer to peer (P2P) distributed consensus network.
“Kyocera is committed to developing low-carbon solutions that maximize renewable energy resources,” were the words of Hironao Kudo, Deputy General Manager of Kyocera Corporation’s Corporate R&D Group. “We are excited to be the company in the area of grid management in Japan to collaborate with LO3 Energy, which has consistently proven its blockchain technologies all around the world.”
With the help of LO3 Energy, Kyocera intends to set up small VPPs using its solar photovoltaic (PV) modules and batteries. The other firm, based in New York, will have the responsibility of managing the flow of energy, and will do it with the use of the distributed ledger technology.
Blockchain Technology to Verify and Record Transactions
Why is the blockchain technology necessary for the success of the joint project? LO3 Energy will apply the model to verify and record transactions. Therefore, it will distribute energy with its own solar panels by implementing a microgrid, instead of the more traditional large grids.
Kyocera is an influential company in the industry with proven financial success, having made 81.79 billion yen ($736 million) in net income. The firm is a market leader in Japan, and specializes in the production and development of solar power generating systems and storage batteries for the VPP test projects, led by the country’s governmental authorities. Lately, Kyocera has been improving in remotely controlled distributed power systems.
Lawrence Orsini, who currently acts as the CEO of LO3 Energy, observed that “the need to reduce carbon emissions is exerting a profound impact on energy providers worldwide. Using distributed ledger technologies, our networks enable the micro energy transactions needed to meet this challenge. We believe the synergies between Kyocera and LO3 Energy will produce a new generation of virtual power plants that can accelerate Japan’s transition to a low-carbon society.”
The project can potentially change the way energy is managed and produced, thanks to the implementation of the blockchain technology.
It is not the first alliance to gain grounds in the quest to find a more efficient use of energy. The international tech giant IBM established a partnership with blockchain company Veridium Labs in May 2018, with the primary objective of tokenizing carbon credits that would let businesses to track their carbon footprint thanks to the blockchain technology.
By Andres Chavez