Blockchain technology is changing the Renewable Energy Industry, for the better. Blockchain is what underpins the Bitcoin virtual currency: it’s what’s known as decentralised ledger technology. Blockchain enables a transaction between two parties, but bypasses the need for a third party, which exist to establish trust between the two – and are paid for the privilege. Institutions such as banks, lawyers and utilities usually have to be a part of a transaction, but Blockchain technology bypasses this. How does this affect the renewable energy industry and energy transactions?
Fundamentally, it will let people trade energy amongst themselves, putting control into the hands of those consuming energy, rather than purely those who supply it. This, in turn, creates a bigger push towards more renewable energy projects: wind, solar and hydro producers can easily connect directly with investors – a distributed system, it allows for the middleman to be removed. As well as this, Blockchain technology lets energy producers make more money by issuing energy tokens that can either be consumed or resold, creating a clean, multidimensional grid.
“Blockchain lets energy producers make more money by issuing energy tokens that can either be consumed or resold, creating a clean, multidimensional grid.”
Blockchain technology, therefore, creates a decentralised energy sharing economy, where power can be exchanged between peers, stabilising the grid. Blockchain technology will allow for a more secure, cost efficient, low carbon grid – forging a stronger path towards a zero-carbon world. Blockchain expertise is invaluable in the Renewable Energy sector.
