The Global Clean Energy Transformation Through Blockchain
We are in the midst of seeing the World’s electricity grids undergo a much needed transformation. The century-old large, fossil-fueled power plants as the backbone of centralized power grids is giving way to a revolution of emissions-free distributed energy resources (DER’s).
DER’s that collectively sustain increasingly decentralized power grids. Such DER’s include technologies such as electric vehicles (EV) and EV charge points, battery energy storage systems, smart thermostats, solar PV inverters, wind turbines, grid-interactive water heaters, and smart meters. These assets are in the midst of a massive increase. Based on Bloomberg New Energy Finance and RMI forecasts, we expect the total number of installed devices to grow from 2.2 billion in 2022 to 3.8 billion by 2030.
Consumers today have taken their power for granted. As a consequence, the power industry has not really changed much in the past 50 years. There were good reasons for this. Reliable service and stable prices for electricity based on system scale and capacity are the foundation of our modern economy. It didn’t make much sense to disrupt this system. But today, there are a number of match changers unlike anything the power industry has ever seen.
There has been a change in who is investing in these technologies, being the customers. From homeowners to EV drivers to companies, customer spending on clean energy technologies alone is forecasted to eclipse utility spending on all energy.
Why Blockchain?
Fundamentally, blockchain is a shared, encrypted, distributed ledger that supports transparent and secure peer-to-peer transactions without the need for third party verification. The blockchain consists of a linked list – a chain of transactions from initiation to completion – that is synchronized to achieve data protection. The network registers all recorded transactions, using sophisticated algorithms to ensure the validity of every link in the chain. The most significant benefits of blockchain technology are transparency, immutability, traceability, security, and efficiency.
When it comes to the renewable energy industry, blockchain technology has the potential to provide important benefits and innovative solutions to some of the key challenges faced by the energy industry. Specifically, blockchain allows energy projects the ability to decarbonize, decentralize, and digitalize their services, which are required for long term success.
Mark Goorwah
