Blockchain for Energy Utilities

Blockchain in the Energy Industry — Part 3

Blockchain is a disruptive technology; this inherently implies that it is a threat to centralized players in all industries, including the energy industry. However, this does not have to be the case. Blockchain can, in fact, allow utilities to increase their returns significantly.

“By 2030, customer investment in energy industry assets will surpass the investment made by utilities.”

Decentralization of the electric grid has been happening for a long time now. In fact, research shows that by 2030, customer investment in energy infrastructure, renewable energy generation, DERs and other energy industry assets will surpass the investment made by utilities. This goes to show that the threat is the customer-focus that comes from decentralization. Blockchain, on the other hand, is the technology that can be used to streamline this decentralized grid; in itself, it does not pose a threat to utilities.

“By incorporating blockchain-enabled transactive energy, utilities have been able to effectively leverage customer-owned DERs.”

By incorporating blockchain-enabled transactive energy, utilities have been able to effectively leverage customer-owned DERs. With the sun setting on net-metering, however, utilities now need to revamp their business models. How do you think utilities can still leverage DERs and blockchain to turn a profit?

Utilities can also use blockchain to balance energy supply and demand, i.e., incorporate flexibility to prioritize energy flow, which aids in grid balancing. Blockchain can be used for increased visibility and traceability for grid material and equipment by tracking the chain of custody. Additionally, utilities can use smart contracts to streamline the process of giving RECs to solar producers by recording data and reducing inaccuracies.

In what other ways do you think utilities can or in the future would be able to leverage blockchain to their advantage?