As blockchain technology is being applied to various fields, power companies are also adopting blockchain technology. Why are blockchains being introduced to electric power companies?
I would like to explain the two reasons why the introduction is progressing and the four benefits of introducing it.
Application of blockchain technology to electricity
Distributed management of data like blockchain technology makes it possible to manage data safely and reduce the cost of managing data. Attempts to apply this blockchain technology to the energy industry have begun.
What exactly is that attempt? I would like to explain briefly.
Until now, it was common sense that electricity was supplied only by electric power companies.
In the past, electricity was generated from power plants owned by electric power companies, and then general consumers used the electricity and paid for the electricity they consumed (including basic charges). was.
However, with the feed-in tariff system for renewable energy, it is now possible to sell surplus electricity generated by households to electric power companies.
The advent of solar power generation systems has ushered in an era of selling electricity.
Since the 1990s, solar power generation systems have become popular in ordinary households, and we have entered an era in which electricity generated by ordinary households is consumed at home and surplus electricity is sold to electric power companies. Electricity used to be just a supply, but we are now in an age where consumers can also generate electricity and buy and sell surplus electricity.
Since 2009, a nationwide system has been implemented to spread solar power generation systems to ordinary households, and we are now in an era where electric power companies will purchase excess power.
Overseas, consideration has already begun for the utilization
Overseas, attempts to incorporate blockchain technology into the energy industry have begun. Attempts have been made to use blockchain technology to provide a service that allows individuals to consume electricity generated by solar power at home and freely trade surplus electricity between individuals.
We aim to develop services that enable reliable transactions between individuals by applying blockchain P2P networks and smart contracts.
What Blockchain Will Power Companies Use?
I have briefly explained that efforts to apply blockchain technology to the energy industry have begun.
Specifically, what part of blockchain technology will be used by electric power companies? How will the technology based on the development of virtual currency be utilized in completely different fields?
You can manage the power grid with blockchain
First, blockchain will be able to manage the power grid. By utilizing the blockchain P2P network, it is no longer necessary to intervene with multiple intermediaries as intermediaries.
The environment was prone to fraud and human error due to the intervention of multiple vendors, but it is possible to manage highly transparent and safe information, and there are no extra transaction costs, so costs are reduced. can be achieved.
It is possible to exchange the environmental value of renewable energy
By utilizing blockchain technology, it is possible to exchange the environmental value of renewable energy. By using a P2P network between power providers and power buyers, it will be possible to simply buy and sell power without going through complicated systems as in the past.
When using blockchain, transactions are monitored between users, so it is impossible to carry out illegal transactions, and it is possible to carry out transactions with high reliability at all times.
Power Consumption Management and 4 Advantages of Blockchain Technology
How can we manage power consumption by applying blockchain technology? What are the benefits of using blockchain technology? I would like to explain briefly.
It will be possible to manage the amount of electricity traded
It will be possible to manage the amount of electricity traded by applying blockchain technology. Blockchain technology has the advantage that data falsification and accounting errors are less likely to occur because users manage information with each other.
Also, by applying blockchain smart contract technology, it will be possible to reduce various costs.
Efficient management of environmental value
By applying blockchain technology, it is possible to efficiently manage the environmental value of renewable energy. In the conventional centralized management system, it is complicated to manage the environmental value of renewable energy, and the data to be managed is often opaque and lacks accuracy. was.
By applying blockchain technology, it is possible to eliminate useless traders, etc., so it is possible to manage data very efficiently.
By doing so, environmental value can be retained and exchanged.
If the management of renewable energy becomes possible by applying blockchain technology, it will also be possible to retain and exchange environmental value.
Until now, it took a lot of time and money to maintain and manage environmental value, but the use of blockchain technology makes it easier to manage, and it can be done without human intervention. can also reduce costs.
You will be able to buy and sell surplus electricity between neighbors.
If renewable energy can be managed by applying blockchain technology, and environmental value can be retained and exchanged, it will be possible to buy and sell electricity between neighbors.
By applying blockchain, it is possible to conclude automatic contracts without going through an intermediary, and since information is monitored between users participating in the network, transactions are always highly transparent. is possible.
There are also challenges for blockchain to be used by electric power companies
We have explained that applying blockchain technology to the energy industry may bring various benefits. However, there are still some challenges in introducing blockchain technology. What is it like?
It is necessary to introduce blockchain technology into the power company system
First, to apply blockchain technology, it is necessary to introduce blockchain technology into the power company system. A feature of blockchain is that users share a network and manage data in a distributed manner. This makes it possible to build a system at a low cost.
It may be difficult to change the large-scale system of a power company to the blockchain, but it may be possible to introduce it from the part that can be replaced with blockchain at any time.
The introduction of the system is necessary not only for companies but also for general households
Blockchain is a technology that allows users to monitor and manage information among themselves. Even if only electric power companies introduce blockchain, consumers will not be able to benefit from blockchain unless they introduce blockchain.
It can be said that companies need to take action such as conducting public relations activities to encourage consumers to introduce blockchain, and consumers themselves also need to take action toward introduction.
Summary of Blockchain and Power
I have briefly explained that the introduction of blockchain technology to the electric power industry will bring various benefits. By applying blockchain technology, it will become easier to retain and manage renewable energy in the future, and it will be possible to receive highly transparent services.
It can be said that there is a high possibility that new solutions to the 2019 problem will be found with blockchain technology.
Some companies are promoting the introduction of blockchain technology, and the future is not far away when more services using blockchain technology are provided than ever before. As the introduction of blockchain progresses, the state of consumers and energy will change significantly.