Nigeria and many other nations have investigated the application of blockchain solar technology in numerous industries, including energy. About half of the population has no access to grid energy in Nigeria. Moreover, it has one of the lowest rates of electricity access worldwide. This is according to research published by the International Financial Corporation (IFC). However, off-grid solar solutions have increased as a result. Thus, blockchain solar technology has become a tool that can help increase efficiency, accountability, and cost-cutting.
Blockchain is a new technology that offers a secure distributed ledger platform for easy transactions. Furthermore, it enables new opportunities that benefit sectors by increasing transparency, enhancing security, and making traceability simpler. On the other hand, solar power is a sustainable energy source that you can use to create electricity without releasing damaging greenhouse gases.
Also, it is a decentralized, secure, and transparent manner of storing and exchanging information. A more effective and open energy system is produced using blockchain technology in conjunction with solar technology. Additionally, solar energy systems built on blockchain technology may be able to help with some of the major issues the energy industry is now dealing with. Such include helping to lower carbon emissions, enhancing energy security, and fostering better access to and affordability of energy.
Blockchain is not just legitimately upending a variety of businesses, but it also looks very hopeful. The system has gotten about $200 million from the huge IT company IBM. Also, almost 60% of African and Nigerian firms are heavily investigating blockchain possibilities. Reputable ICT professionals believe that blockchain technology has the potential to change several industries, including government, research, banking, insurance, and personal identity security.
With the advent of the blockchain protocol, it is now possible to create an auditable, encrypted ledger that can record energy consumption, and credit histories (which are important when accessing financing). Also, it can now facilitate energy trading between households, giving consumers more control over their energy needs and consumption.
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Also, peer-to-peer energy trading using blockchain technology enables solar energy producers to sell surplus energy to their neighbors directly. Thereby, cutting out the middleman (such as energy corporations) entirely. So, this makes it easier for Decentralized Autonomous Organisations (DAOs) to be formed. Thus, allowing them to control and manage solar energy installations with a greater sense of community ownership.
Blockchain specialist, Chimezie Chuta, a Country Director at Paxful Inc., discusses the potential of blockchain solar technology to expand access to power in Nigeria. He stated in an interview from 2018 that a peer-to-peer energy market where people may exchange energy credits. Which might be developed using blockchain technology. The implementation of blockchain technology, he added, “will provide openness, close gaps, and assure efficiency in the energy industry.”
Furthermore, the generation, distribution, and consumption of solar energy might be revolutionised by blockchain technology. The Academic Director of the Lagos Business School’s Sustainable and Inclusive Digital Financial Services Project, Professor Olayinka David-West also supports. In an article that Caleb Ojewale published in 2017 on Business Day Nigeria. She discussed the potential of blockchain solar technology to expand Nigerians’ access to electricity. Also, she suggested that we can build a decentralised energy system using blockchain technology. Which is more dependable and effective? She believes that blockchain solar technology can help Nigerians gain access to electricity and establish a safe and open energy market.
In an exclusive interview with This Day Nigeria Uzoma Dozie. The founder and CEO of Sparkle, a digital microfinance institution licensed by the Central Bank of Nigeria (CBN). Also, the Nigerian Deposit Insurance Corporation (NDIC), made some observations about the potential for blockchain solar technology. This is solely to support financial inclusion in Nigeria. He points out that blockchain-based energy systems might support the expansion of the economy in rural regions by enabling access to financial services for those who are now without it.
Moreover, it might offer a more effective approach to controlling energy supply and demand. While lowering the expenses and administrative load associated with conventional energy distribution networks. In the same vein, the Vice President of OneWattSolar in Lagos, Victor Alagbe, has stressed the value of blockchain in fostering trust and transparency in solar energy transactions. He contends that the decentralised structure of blockchain technology can aid in the eradication of fraud in the solar energy industry.
He added that the application of blockchain technology in solar energy systems may make it simpler to guarantee that we can use energy in a sustainable way. With blockchain-enabled solar panels, he contends that communities may produce and distribute their power. So, this is without the need for costly grid infrastructure. Moreover, he said that blockchain solar technology can aid in resolving Nigeria’s problem of energy poverty. As a result of this, communities and people can access cost-effective and dependable solar energy solutions. Thus raising their standard of life and promoting economic growth.
Furthermore, the CEO of BudgIT Nigeria, Joseph Agunbiade, has discussed how blockchain solar technology might help Nigerians have better access to electricity. In an interview with Guardian Nigeria, he asserted that “Blockchain technology will revolutionise Nigeria’s energy sector.” Particularly in terms of decentralising power distribution and expanding access to electricity in rural regions. Moreover, people and organisations may easily trace the production and distribution of solar electricity. So, using blockchain technology, it assures there is openness and accountability. Solar panel owners may monitor the operation of their panels. Also, you can get paid for producing solar energy by utilizing blockchain technology. This encourages people to buy solar panels and advances the development of renewable energy.
Conclusion
In Nigeria, where many people still lack access to dependable and inexpensive electricity, blockchain solar technology is a relatively new and novel method of expanding energy availability. Blockchain solar technology’s uptake and success in Nigeria depend on several variables, including governmental regulations, infrastructural expansion, and general public knowledge and education. This innovation combines the usage of solar panels with blockchain technology to let people trade energy in a decentralised marketplace. The conclusion is that by combining blockchain technology with solar energy systems, we may be able to create a more reliable and secure energy infrastructure that is more resistant to cyberattacks and system failures.
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