Energy Sales – Giving Power Back to Consumers With Blockchain
Energy sales are a heavily regulated market, with both local and large companies occupying the space. These big enterprises are in for a real shock: they’ll no longer be able to manipulate energy prices as heavily as they are currently. Of course, this isn’t right around the corner, but it’s coming! What’s going to drastically change the landscape of the energy market, you may ask? Blockchain technology.
Quite literally, it’s bringing a new wave in the energy revolution, in which both utilities and individuals alike play economical roles as producers and consumers of a certain commodity. In this case , the commodity is electricity. Today, electricity is sold through a facilitated dealer. People can buy and sell energy directly to one-another via blockchain, eliminating the need for a middleman entirely. Basically, it makes a peer-to-peer energy trading system a reality.
More or less, the technology serves as the backbone for utilities’ “smart grid” management systems. These systems essentially monitor the network, and diagnose issues as they arise. Given its infancy, time’s needed to see how everything plays out. In the end, it may ultimately transform into a much larger undertaking. Homes, business, and communities all participate in these power generation systems. This technology opens new markets for small startups to move in and disrupt the current industry.
Companies Are Entering the Energy Game
A British startup, Electron, is developing a blockchain platform which has potential to allow British customers to reliably switch power companies in under 24-hours. Moreover, they’re also working with Data Communications Company, the UK’s newest centralized meter data agency. An Austrian startup, Grid Singularity, uses blockchain technology to develop a decentralized energy exchange platform, which ranges from validating electricity trades to monitoring grid equipment.
Blockchain applications feel endless. At first, the power industry may disapprove. In their eyes, blockchain can interpreted as a technological disruption for their business. So, the benefit of decentralizing the power grid eliminates large companies from retaining monopolies on vital resources. Individuals can buy, sell, and trade electricity on a free market with out going through one centralized source.