It is predicted that by 2020, the largest energy company in the world (by market cap) will not own any network (grid) or generation assets. It will manage information about energy sources and consumers.
It is estimated that the cost of generation is less than half of the price of electricity. The wholesale price of electricity will drop significantly while the retail price is increasing – in other words, electricity is cheap, the grid is expensive. This will result in looking at transmission & distribution costs where customers will shift their power purchases to lower-cost energy providers or have decided to self-generate. Also with residential customers can now sell excess energy from his solar rooftop installation to a neighbor, all paid for and recorded through Blockchain.
Industry uses of Blockchain technology are vast as it leverages decentralized peer-to-peer internet technology, where both computers and people share a distributed ledger. Blockchain is a decentralized, distributed database for managing transactions. Blockchains provide a global infrastructure free from the stability or permission of governments and institutions.
Blockchain has the potential of being game changer in Utilities industry as it leverages decentralized peer to peer internet technology, where computers and people share a distributed ledger. Some of the startups & industry players which are disrupting utilities industry are follows:
- Ethereum – the most widely used platform in the industry is a public decentralized Blockchain based platform featuring smart contract functionality. Also being a cryptocurrency it has multiple used like online market places.
- powerpeers – focusing on a digital, interactive marketplace where supply and demand for self-generated energy converge
- Slock.it – develop EV charging station that use Blockchain-based smart contracts to authenticate users and manage the billing process
- bankymoon – manage utility costs by leveraging the international donor market and receiving cryptocurrency payments directly to the meter
- LO3Energy – a pilot delivering real-time metering of local energy generation and usage as well as other related data,
- SolarCoin – Alternate digital currency reward system, SolarCoin is claimed by individuals living in home with Solar Energy panels on their roof or large solar electricity farms
- Grid Singularity – Decentralized energy data exchange to facilitate data analytics, smart grid management, and trading and investment decisions.
This article was written by Vijay Karna from Capgemini: Capping IT Off and was legally licensed through the NewsCred publisher network.