The highly regulated electric power industry is in need of the enablers to move away from some of the traditional business models with some of the complex operating structures. Blockchain technology is one such to create a paradigm shift towards the industry in a more decentralized and transactional environment, according to the report which has been revealed.
Some of the key challenges that the electric utilities face in today scenarios are high operating cost, security, aging grids, regulatory, and personalized customer service. Due to the blockchain potential in addressing many of these plans points, business leaders are now increasingly interested in experimenting with the latest innovative technology.
Archi Dasgupta, Disruptive Tech Analyst at GlobalData, comments: “Blockchain could be the leading enabler of decentralization, democratization, and liberalization in the power industry. Using smart contracts, the technology can empower bilateral settlements in real-time by eliminating midpoint delays steering to a significant reduction in the operational costs of utilities.”
Some of the decentralized of power with the blockchain technology has given a high rise to the trading platform like that which is implemented in the Brooklyn microgrid by the LO3 energy where the power can be purchased or and sold directly just within the peer to peer network, that even eliminates the need for the intermediaries. This will not only lower the cost of both the consumer and utilities but also present network transparency.
Australia crypto startup Power Ledger which is known for developing the decentralized energy trading platform on the blockchain launched its first commercial deployment in entire America. Its distributed P2P blockchain network allows the businesses and consumers to sell their surplus solar power in their neighborhood without the help of a middleman.