Blockchain technology is in the spotlight once again. A new collaboration based on its technology seeks to open the renewable energy market to smaller power distribution businesses.
The population of the world is growing and along with this growth comes the need for more electricity. However, fossil fuels won’t last forever and it is not an environmentally sustainable option either. Cleaner and renewable energy is the answer but getting into the business could seem daunting for smaller power-supplying firms.
Blockchain Opens the Door to Renewable Energy Trading
PJM Interconnection (PJM) is a U.S.-based power distribution company that services 13 states and the country’s capital city, Washington, D.C., by providing electricity to over 65 million people. According to Power Technology, the company is partnering with the blockchain-based Energy Web Foundation (EWF) to help these smaller distributors be a part of the renewable energy market.
The blockchain-based system will not only provide a transparent way to track the supply chain process of renewable energy but will also connect buyers and sellers in the industry. The energy that will initially be tracked will be wind- and solar power. PJM’s president of environmental information services (EIS), Ken Schuyler, explained what led the company to blockchain:
We are excited for the opportunity to collaborate with EWF and gain experience with a new technology. Our customers have expressed interest in incorporating blockchain technology into our services, and we look forward to leveraging the technology where it can provide additional benefits.
Streamlining Processes and Saving Money
PJM also touched on how this technology could streamline their processes and as a result, save the company some money. Its vice president Jaclynn Lukach, said:
Blockchain will give some smaller users the ability to trade. We’re also hoping it will reduce administrative costs.
The PJM team aren’t the only ones excited for this collaboration. EWF’s CEO, Hervé Touati, added:
This collaboration between EWF and PJM-EIS is a major milestone for the adoption of advanced digital technologies in the energy sector. We are excited to partner with a leader such as PJM-EIS.
Live Bitcoin News recently reported on another blockchain powered initiative in Nigeria. OneWattSolar hopes to use solar power to bring electricity to people in Nigeria and Sub-Saharan Africa who do not have access to it. Again, blockchain will be used to track the supply of it.
As with OneWattSolar, the PJM-EWF partnership will begin its pilot phase at the beginning of next year.
Do you think that this will be another successful blockchain-based collaboration? Let us know in the comments below!
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