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Blockchain in the Energy Industry

7.2.2  Managing Energy Supply and Demand in Real Time

Electricity markets are constantly forced to balance supply and demand. Such a bal­

ance is a challenge for both renewable and fossil fuel-based energy generation. In

the transition process from fossil fuels to renewable sources, many countries are

in desperate need of new flexible systems to accurately forecast the power demand

and match the supply accordingly to the system. Hence, a transparent data structure

(backed by blockchain technology) is also essential to evaluate energy sources and

prepare them for quick adaptation in times of scarcity.

Blockchain (theoretically) is a technology that can offer stable, real-time data

transmission and allow effective monitoring and maintenance of electricity-industry

infrastructures. The technology can also provide quicker response times (again, in

theory) in an emergency (Siemon et al., 2020). Data is expected to be protected and

accessed by each stakeholder. Blockchain is anticipated to add a security and col­

laboration layer to the existing digital pilots by allowing quick, reliable data col­

lection and connectivity between equipment vendors, infrastructure maintenance,

and emergency response teams. In order to serve that purpose, Tennet TSO GmbH

(Germany) is now partnering with battery manufacturers IBM and Sonnen GmbH to

establish a non-physical line of transmission utilizing blockchain-based technology

to use the surplus electricity extracted from wind turbines and store the power using

batteries. The storage power is then distributed through electric grid lines in the

southern part of the country (Höhne & Tiberius, 2020). This decreases the power and

infrastructure cost associated with installing new lines (Höhne & Tiberius, 2020).

The UK-based corporation Electron is also planning a new breakthrough in terms of

the supply chain model by utilizing blockchain technology (Goranovic et al., 2017).

The company is also using blockchain to build (via versatility marketplace) a frame­

work to maintain the power demand and supply. This phenomenon is dubbed Energy

eBay because of its tremendous prospects and role in stimulating widespread indus­

try participation (Goranovic et al., 2017).

Developing countries, still undergoing the ultimate hurdle of ensuring suffi­

cient energy supply, can implement blockchain-powered applications to make the

demand forecasting strong and accurate via real-time data analytics from the sys­

tem. Such exposure of information can help the regulators to effectively manage the

supply of electricity following its economic mandates. Real-time demand signals

emitting from a blockchain-based ledger include the ability to transact between all

the assets demanded and supplied, therefore helping to make effective decisions

(Dong et al., 2018).

7.2.3  Promoting Investments in Energy Industries

According to Crunchbase (a multinational start-up database), at this moment, 140

companies are rapidly heading toward the blockchain-empowered energy sector

(Andoni et al., 2019). Start-ups appear to be leading advancement in transforming the

business models in the electricity industry, riding on the back of blockchain-based

applications (Deign, 2017). Blockchain technology offers transparency to investors.