It is time to discusses the power trading platform theme mentioned in our previous article "Power Blockchain".
In our previous introductory article on the Power Blockchain, we discussed the impact of Power Blockchains on the energy markets and identified 5 opportunity themes. This article discusses the power trading platform theme.
Digitalisation is growing across the globe and is impacting the entire energy value chain helping businesses gain unprecedented levels of visibility and efficiency, at the same time reducing costs and risks. Power and commodity trading businesses are increasingly relying upon the use of big data and cloud technology to optimise their services and businesses. Blockchain enters the business process by building on this platform.
Notwithstanding the significant investment in automation and IT infrastructure, power trading remains mostly a manual exchange process, requiring interfacing with multiple stakeholders, and a layered value chain.
In most electricity markets, throughout the power value chain, there are the energy generators, market operators, brokers, retailers, and the consumers that each interface with one and other and participate in the energy market. Each of these stakeholders has a defined role and the market is designed so that the power flows from the power generator to consumers.
A Power Blockchain market has the potential to consolidate this value chain and allow a bidirectional power flow. This will provide timeous and thorough visibility of energy demand. Furthermore, if designed properly it has the potential to allow consumers to become prosumers.
The design of blockchain and its advantages show strong synergies with power trading and the many changes related to digitalisation in the energy space. Blockchain enables an integrated platform for analysing big data quickly and efficiently allowing better-informed power sourcing decisions. A robust trading system that incorporates big data analytics and artificial intelligence could also create a transactive energy market that allows consumers to automatically manage their energy transactions.
With blockchain, transactions can be processed without the need for centralised brokerage. This will remove layers from the energy value chain exposing efficiencies leading to more effective costed power. In addition to energy cost efficiencies, the transaction costs can also be improved.
Atlantic Power Exchange is developing applications for power trading; we aim to deploy our Phase 1 of our platform to allow direct energy transactions between consumers and prosumers. Our platform will allow multiple blockchain transactions adopting the most efficient network as they come to market.