Blockchain technology is expected to become increasingly popular in the energy sector, as in many other industries. It is seen as a promising tool in the energy sector for recording and simplifying transactions between energy producers and consumers. So what is blockchain, its advantages, and how can it affect the energy sector? Let's take a closer look.

What is blockchain?

This technology securely stores and transmits operational information transparent and encrypted without central control. In other words, it directly links the supplier to the vendor, eliminating the need for a third party, systematically storing all information on each computer in the chain, and reducing transaction costs. The blockchain consists of a set of blocks that form a database containing the history of all transactions carried out by its users. In private blockchains, only its members can access the record of all transactions on the network, while public blockchains are accessible to everyone.

“This technology securely stores and transmits operational information transparent and encrypted without central control. In other words, it directly links the supplier to the vendor, eliminating the need for a third party, systematically storing all information on each computer in the chain, and reducing transaction costs.”

What are the advantages of blockchain?

- Transparency: Data on the blockchain is recorded chronologically and accessible to members.
- Decentralization: Any member can add transactions to the registry without needing third parties. Also, the data is stored on the chain members' computers.
- Immutability: Once data is entered on the blockchain, it cannot be changed or deleted.
- Security: All data is verified and encrypted by blockchain members before being added to a block.

What effects could blockchain have on the energy sector?

- Peer-to-peer (P2P) electricity trading: Sale of surplus renewable power to other grid participants via automated smart contracts.
- Management of renewable energy certificates: Registration of renewable energy certificates automatically and in real-time to avoid double counting.
- Grid management: Automatic control of all energy and storage flows through the network to balance supply and demand with increasing intermittent integration of renewable energies.
- Electric vehicle charging and sharing: Peer-to-peer electric vehicle charging applications and grid services.

Blockchain technology, expected to improve existing markets for electricity trade and even create new ones, is transforming the energy grid into a connected one. Thus, customers can exchange electricity between themselves by purchasing and selling solar energy without needing a central organization. Blockchain technology can also be used in electric mobility applications. Private owners of EV charging infrastructure can sell charging services to EV owners via blockchain. In addition, it is possible to track all records of carbon credit sales accurately with blockchain technology.

To summarize, blockchain technology has the potential to transform the energy industry. We will see how much of this potential will be realized in the highly regulated energy sector.