The potential of Blockchain technology in the energy industry!

Hello dear readers and members of AVALO-energy,

Blockchain technology is being used in more and more industry branches and the many benefits are increasingly being recognized internationally.

Today we would like to share an interesting article about Blockchain technology in the energy industry with you again.

Here you can find the original article in German: https://www.euwid-energie.de/welche-potenziale-hat-die-blockchain-in-der-energiewirtschaft/

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Translated excerpt of the German article:

The "Blockchain" is something of a magic word in the current energy-economic discussion. The industry is dealing more and more intensively with the topic. "According to my observation, many energy providers agree that blockchain technology has the potential to significantly influence the energy industry in the coming years," says blockchain expert lawyer Sönke Gödeke from the firm Pinsent Masons in the EUWID interview. But what are the actual potentials? Initial answers are provided by several studies that have focused on blockchain technology in recent weeks and months.

Versatile options, but not for every problem is the blockchain the solution

An analysis by the German Energy Agency (dena) and the European School of Management and Technology (ESMT Berlin) shows that blockchain technologies have the potential to become the dominant design in public charging and billing transactions for electric vehicles. Nevertheless, the cost reduction potential of blockchain applications for the energy transition is "limited", according to the study. Especially in markets where digital solutions have already proven their worth, the technology meets strong competitive products and services.

In May 2018, dena kicked off a study to assess the use of blockchain technology for the integrated energy transition, in particular to coordinate the growing number of decentralized components of the energy system across all sectors. "We have reached a point where it is about to check whether the opportunities of technology in practice, technically, economically and legally can be realized," says dena CEO Andreas Kuhlmann. The aim of the study is to answer the added value the blockchain can offer over alternative systems in specific fields of application.

Blockchain in the energy industry still lacks maturity

The consulting firm Pöyry Management Consulting has also dedicated a special topic to Blockchain in the context of its publication "Energy for Germany 2017". The consulting firm is also working out the potential of Blockchain, but sees no reason to fall into euphoria or even hysteria in terms of technology. "It is still too early to speak of a triumphal procession, Blockchain has to redeem its value proposition," says Pöyry expert Eckart Lindwedel.

This is also the opinion of many executives in the energy industry. Half of the executives interviewed by the consulting firm Detecon Consulting assume that it will take at least another two years before the blockchain has a sufficient maturity in the energy industry. The study was published in late 2018.

Blockchain's potential significantly higher in emerging markets

Dena and ESMT emphasize that the potential of blockchain in emerging markets is significantly greater. Blockchain is a decentralized digital platform that enables secure data storage and transactions in peer-to-peer networks. "The revolutionary potential of the technology is to make intermediary instances such as banks redundant, as transactions can be made directly from user to user," the study said.

The use of blockchain technologies in the energy sector could, among other things, simplify the integration of numerous decentralized generation facilities and promote the use of renewable energies. This development leads to new digital business models in the energy industry. "So, for example, energy providers could develop into application or system providers to compensate for license sales and license fees," says Robert Schwarz of Pöyry Management Consulting, who has created the analysis of the consulting firm together with Lindwedel.

In the recent past, the topic has also received increasing attention in the German energy sector. At Enercity, customers have been able to use the crypto-currency Bitcoin for some time, based on the blockchain principle. And several project partners around blog.stromhaltig have launched the green source project, the open source project, which should provide electricity customers with verified proof of the actual (eco) electricity they are using. Meanwhile, the StromDAO offer is on the market. "The StromDAO is implementing a transformation of the electricity market based on decentralized renewable generation and blockchain technology," it says on the website of the providers.

Blockchain as an option for post-EEG time

Blockchain technology could also be of interest to plant operators if their EEG subsidies expire in the coming years. "With our model we are giving windmill and solar system operators the opportunity to market their systems directly to the end customer and thus achieve cost-covering revenues," says Andreas Feicht, CEO of Wuppertal Stadtwerke (WSW). The company has launched a widely acclaimed Blockchain project that allows for direct regional marketing of electricity from specific assets.

Models like WSW's regional flow model can be interesting fields of application for blockchain in post-EEG time. This is also pointed out by the Research Center for Energy Economics (FfE). "Blockchain technology and the use cases for labeling energy quantities and P2P trading are a potential marketing option for new and post-EEG plants and can improve the long-term economic viability of these plants," says one in November 2018 published study.

As the blockchain grows in importance, the topic also gets more organizational structure. In mid-2017, the foundation of the Federal Association Blockchain was announced. The blockchain initiative Energy in the association EDNA deals specifically with the topic of blockchain in the energy industry. Finally, the initiative presented a decision tree to help with the question of whether the blockchain represents a suitable technological basis for specific applications.

Original article in German: https://www.euwid-energie.de/welche-potenziale-hat-die-blockchain-in-der-energiewirtschaft/