Blockchain technology, is increasingly finding applications in the energy sector predominantly in wholesale energy trading. However, the technology is being used for various other applications with the help of Smart Contracts to offer digital identification, encouraging power suppliers to actively invest in more research and innovation for developing Blockchain solutions.
The energy sector has certain limitations, including high administration and transmission costs mainly due to the centralized functioning of the sector. As Blockchain addresses these issues and decreases the scope for single-point failures while increasing transparency across the supplychain the technology is expected to bring a noteworthy digital transformation for the sector.
With the UK’s power distribution networks looking to potentially have to spend £24 Billion between 2015 and 2013, any way that can make the UK power suppliers more efficient will be welcome.
The Smart Power project from Imperial College has identified £8Billion worth of savings p.a. using technology like smart meters and variable power supplies which Blockchain technology could significantly help.
In Spain power utility firm Iberdrola has completed a project that uses Blockchain technology to ensure customers can be certain they are using renewable electricity, so reducing their carbon footprint.
