Blockchain for Clean Energy and Climate Change
Blockchain in the Energy Industry — Part 4
With the increasingly challenging decarbonization targets set forth by governments globally, the energy industry has had to take a fresh look at not only their business models but also generation and transmission technologies.
“By 2050, only 29 percent of global energy production would come from conventional sources.”
By 2050, only 29 percent of global energy production would come from conventional sources, which is a decline of 34 percent from today. An investment amounting to $11.5 trillion that has been made in global power generation capacity will ensure that half the electricity consumption worldwide would come from solar and wind technologies, while the remaining 21 percent would come from other clean zero-carbon technologies.
While policy and regulation has played a major role in making this happen, the decreasing costs of renewables have been responsible as well; it is forecasted that the average solar energy plant would cost only 29 percent of its current value, while wind energy plans will cost only 42 percent of how much they cost today.
“Blockchain forms the bridge that connects decarbonization goals to clean energy generation.”
In order to integrate all this added renewable generation to the electric grid, interoperability, scalability, traceability and security must hold center stage, which is accomplishable through blockchain. Intricate transactions that take place in this ecosystem can be simplified through smart contracts. When aided by technologies like AI and IOT, blockchain forms the bridge that connects decarbonization goals to clean energy generation. Blockchain is recognized by the United Nations Climate Change (UNFCCC) secretariat as an essential instrument to improve transparency, reduce costs and increase efficiency in the energy industry; they encourage innovation at the “threshold of blockchain and climate change”.
In what other ways do you think blockchain can aid in slowing down climate change?
