With their decentralized system and their price boiling since last year, the cryptomonsnothave fascinate more than ever. For individuals, cryptocurrency is the promise of a decentralized system in break with the traditional rigid banking framework. For manufacturers, cryptos are above all the materialization of a technology that is on the way to revolutionize all trades: blockchain. Recently, a report from a European task force looked into theuse of blockchain in the energy sector.
CIGRE looks at blockchain
CIGRE is an organization well known to theenergy engineering (nuclear, hydraulic, etc.). Created in 1921 in Paris, CIGRE is an international community of experts in the sector. These specialists work collaboratively on current and future issues in the energy market. In total, CIGRE brings together around 60 national committees distributed in more than 90 countries in the world.
In all, CIGRE is made up of more than 15,000 members which evolve within the 250 working groups. Each working group (WC) is dedicated to a particular issue. The C5.30 working group is precisely the one working on the role of blockchain technology in the energy market.
In a preliminary report, the C5.30 group points out that the blockchain is still too little used in the energy sector. A dozen companiess use the blockchain for their trading-related activities, the recharging of electric vehicles, the renewable energy tracing, etc. Yet, as the report acknowledges, blockchain has “the potential to significantly improve the energy market.”
What the use of blockchain would bring to the energy market
The advantage of blockchain is that it is a technology that provides high level of security and transparency. In addition, by operating on the basis of “smart contracts”, it has no need for a third party to work. Indeed, once the activation conditions are met, the contract is executed automatically. This results in greater efficiency both from an operational and budgetary point of view.
Thanks to this unique technology, the blockchain could provide concrete solutions to some problems encountered in the energy sector. For example, according to the CIGRE C5.30 group, the blockchain could greatly facilitate the management of electrical networks. Blockchain technology is perfectly suited for manage the balance between supply and demand between different networks.
Blockchain could also facilitate the exchange of network data at border level. Indeed, with the blockchain, data would be stored and therefore shared at all times between the actors concerned. The C5.30 group identified other areas that could be improved by the use of blockchain, such as:
- The adequacy of energy resources;
- Coordination between the different energy operators;
- The price of electricity lower than its production cost;