Blockchain what it means for utilities

5/14/2019 Blockchain

Energy is considered by some to be the lifeblood of commercial enterprise. As energy markets continue to evolve, so too does the way we do business.

Currently, Blockchain is being touted as a catalyst for the continued evolution of international trade and exchange. In relation to the energy market, Blockchain is showing promising signs of transforming the energy industry worldwide.

Recently, Bloomberg shared an article describing Blockchain’s disruptive influence across the traditional utility model by empowering prosumers. As markets continue to evolve, traditional business models will come under increasingly competitive forces, from both domestic and international sources.

In 2018, a New York solar panel owner sold energy to his neighbour through an Ethereum Smart Contract. While in Amsterdam that same year, the first exchange traded energy contract was processed via Blockchain.

Cutting edge technology is powering commercial enterprise at an unprecedented pace, and with it we see opportunities continue to grow across multiple industries simultaneously.

Until recently, most conversations about Blockchain have circled around Bitcoin, Ethereum, ICO’s as tools for crypto-currency creation.
However, as our knowledge of Blockchain and it’s applications continues to broaden, we begin identifying new opportunities in the same way the internet has pushed traditional boundaries.

Consider the potential for Blockchain across financial services via FinTech Solutions, real estate via Instantaneous Settlement and healthcare via Artificial Intelligence - the possibilities are limitless.

Essentially, Blockchain is the generic description of a technology that is a distributed way of storing data. Technically, it’s a Distributed Ledger Technology (DTL) solution which ensures the consistency of data.

Several advantages of Blockchain technology over traditional commercial exchanges includes alleviating cost pressure, it’s worldwide scalability and it’s transaction speed.

Blockchain shows incredible potential for reducing the risks associated with fraud, inadvertent errors and invalid transactions, while simultaneously reducing credit risk by utilising a trusted ledger mechanism.

Additionally, Blockchain expedites financial transactions by standardising data formats across organisations, facilitates regulatory reporting requirements and provides greater transparency of data.

At Atlantic Power Exchange, we have developed a Blockchain compatible technology solution to facilitate the exchange of energy. Our immediate focus centres around green energy solutions that are supported through government policy initiatives such as solar power.

We forecast growing fragmentation across the electricity market. Particularly with the increasing availability of distributed energy resources via smaller rooftop solar suppliers.