Improving utilities with the help of blockchain technology holds vast potential. Here is how blockchain enables better management and distribution.
FREMONT, CA: The utility sector is always on the look-out for innovative solutions. With fluctuating demands and supplies, transforming sources of energy and a rising concern for environmental impacts, the industry faces numerous challenges. Blockchain technology has answers that can help make utilities better. Many companies in the utility sector are trying and testing blockchain while some have already implemented the technology. There are many advantages associated with a blockchain, and they can be successfully translated into potential utility offerings.
• Simpler Energy Trading between Peers
The concept of energy sharing is catching up with the general public. Every time consumers feed energy back into the grid, they can earn some money. The process of transactions associated with the transfer of energy is simplified if blockchain technology is applied. Even while sourcing locally produced renewable energy, the transaction with blockchain makes costs lesser. Blockchain-enabled smart contracts allow real-time monitoring of production and flow data. Hence, energy exchange becomes convenient and cost-effective with blockchains.
• Balancing Supply and Demand
As non-conventional and renewable sources of energy take over conventional power, there is a lot of disparity in demand and supply. To attain a balance between the demands from consumers and the possible supply, smart and flexible services are necessary. Blockchain can be deployed to help consumers adjust their demands according to the energy available through temporary interruptions and intelligent management of batteries.
• Making Electricity Accessible
Many parts of the world are yet to get electricity connections. The process of electrification is expensive, and underdeveloped countries are not able to afford it. However, blockchains technology can aid the process by enabling the selling of energy from planned renewable resources and develop secure and easier financing. Digital power purchase agreements between corporate buyers and energy producers can make electrification affordable and quick so that off-grid and low-income households can purchase energy in required amounts. Blockchain payments directly to electricity meters are also another application that can boost electricity accessibility.
• Charging Points and Stations
The growing concern for the environment has led to the development of electric automobiles. These vehicles run on electricity and do not require petrol, gas or diesel. Blockchain provides options for managing the charging of electric vehicles. By making charging networks autonomous, the technology allows users to access charging stations and conduct secure payments. This is advantageous because it helps in integrating a very fragmented service and prevents grids from overloads.
Blockchain technology brings multiple applications to the utility's desk. The technology can be instrumental in streamlining the process of generation and distribution through better coordination among producers and consumers. Producers can expect higher revenues. Also, with renewable energy production scaling up, blockchain can make its infrastructure more secure and smart.