Our client was an Australian-based company in the energy sector. The client wanted to build an online P2P platform that facilitates an end-to-end unique solution for the easy exchange of energy without the involvement of intermediaries.
The legacy system of one-way power flow from large power stations to consumers on the distribution grid is undergoing a transformation. Today’s consumer has the ability to generate electricity via various methods such as rooftop solar panels and home wind turbines. Residential and commercial utility customers, once simply consumers of electricity, are using these distributed energy resources in vast numbers. They are becoming producers themselves in a new, increasingly decentralized power system. At the same time, they offer an opportunity: the flexibility of these new distributed energy resources, their low carbon footprint, and their proximity to consumer loads could lead to a reduction in electricity usage and infrastructure costs. It allows the power sector to meet ambitious targets if these new small-scale energy producers can sell their excess energy. However, these new small-scale energy producers need a market system without the involvement of third-party agencies.
Our client put forward the business requirements to build a fully automated digital trading platform where consumers can trade the excess renewable energy generated while completely bypassing the involvement of third-party agencies.
Blockchain technology which allows a network of parties to securely transact with each other, without requiring any third party to facilitate trust between can be used to create a P2P E-grid. Blockchain E-Grid project integrates a meter reading function which stores data from a user’s meter directly onto the Blockchain with the help of IoT devices and sensors. The trading platform issues tokens to the producers as the energy are delivered. All the transaction details are saved on the Blockchain as well. When smaller producers of renewable energy generate surplus energy, that is shared back with the grid. Smaller producers can be anyone with solar panels on their rooftops or home wind turbines.
Once a transaction gets accomplished, a smart contract is created and a token is issued. It is then sent to the seller’s account. Details of the transaction along with other information such as seller-buyer information, amount of energy sold, etc are registered on to the entire network as a tamper-proof certificate. The Platform also offers an option for selecting buyers and producers.
Blockchain-based P2P E-grid is achieved through an automatic digital trading process made possible by Ethereum smart contracts on a permissioned blockchain using Monax/Quorum. IoT sensors attached to the energy meters track the quantity of energy produced, distributed outwards, etc, and records the information as transaction ledgers.
- Smart contract-based energy trading
- Permissioned blockchain network
- Automated digital trading
- No Wastage of Electricity
- Less dependency on the national grid
The Blockchain P2P E-Grid allows for a more efficient and highly transparent trading system. The platform allows small energy producers to sell surplus energy to each other instead of selling it to the main grid. The platform completely avoids the rigorous involvement of third-party agencies. Since no third-party is involved, the high transaction costs associated with the buying, selling, and verification of the certificates can be fully eliminated.