BOULDER, CO: Navigant Research’s report, ‘Blockchain-Enabled Distributed Energy Trading’, highlights the specific requirements of an energy blockchain while analysing the driving factors behind P2P trading.
According to the report, P2P trading deals with high granular transactions, which are difficult to execute in a centralized system. Blockchain provides a flexible and low-cost approach based on ledger technology to these trading. It supports P2P trading without the need for a central market function and offers greater flexibility, enabling customer-centric transactive energy.
The use of blockchain is increasing in various industries as it has the capability to accelerate transaction times, remove centralized market control, reduce the cost of performing transactions, and ensure trust between different market participants. Also the new report states blockchain could herald the start of a new model for transactive energy.
“While financial services has led the development of blockchain, utilities are starting to realize the technology’s potential—a number of proofs of concept have been launched, and we expect many utilities to test blockchain,” says Stuart Ravens, Principal Research Analyst, Navigant Research. “However, the most promising area for blockchain is in P2P trading, where owners of distributed generation can sell their excess generation to whomever they wish.”