How Blockchain can Shape the Energy Market of the Future

The energy supply in Germany is currently undergoing a profound transformation process. The reason for this is the so-called Energiewende. Germany is moving away from nuclear power and from fossil fuels to renewable forms of energy. This is not a simple process for everyone involved. Added to this is digitalisation which also affects the energy sector.

Here is where blockchain enters the scence, but what can blockchain contribute to the future of energy supply?

Tobias Federico from Energy Brainpool summed up the somewhat unclear situation:

“We have a solution. Blockchain. But we must now look at the problem.”

At a recent conference in Berlin, all experts were in agreement that the energy supply of the future will be much smaller. Kirsten Hasberg from the BlockchainHub Berlin put it this way:

“The customers will also determine what happens. For example, they could buy shares in the production and then be billed with their consumption. The market becomes much more decentralised.”

This is where blockchain technology can help. It is the ultimate tool for automatically organising, authorising, and maintaining decentralised applications. already offers a “Stromtarif aus der Blockchain” (Power rate with Blockchain). All transactions made by the customer are written directly to the blockchain. The company is now looking for electricity customers who are interested in marketing and product design. With the help of voting rights, a joint decision is made as to whether these ideas become a reality.

Blockchain could also make Energiewende more credible. It can provide customers with proof that their electricity actually comes from the solar panel. Today, no one knows where the electricity comes from, even if it is so-called “biostrom” (eco-power). Furthermore, applications in the field of billing, meter reading and payment will change dramatically.

The energy market of the future, like the other markets, will be much more personalised, i.e. be broken down into the needs of individual households. Through blockchain, the cost for many transactions will become marginal, thus creating the prerequisites for personalisation. In addition, trading electricity among neighbours could become a reality.

As we’ve discussed previously, the blockchain really will herald dramatic changes for some industries, and the energy sector (along with finance) are foremost among these.

See our previous posts on: #blockchain

Photo credit: Material used in the preparation of this article has been drawn from GruenderSzene.

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