Could Blockchain Revolutionize The Electric Grid?

Could Blockchain Revolutionize The Electric Grid?

Oxygen Initiative, a US-based clean technology company, is preparing the country for blockchain-backed electronic wallets. The wallets, which will be

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Oxygen Initiative, a US-based clean technology company, is preparing the country for blockchain-backed electronic wallets. The wallets, which will be used by drivers, have a Share & Charge function, which will enable sharing of charging stations between people and the drivers via a blockchain. These could be the first step in shaping the utility grid.

• Possible Benefits of Blockchain

The founder and CEO of Oxygen Initiative, Stephen Davis is very optimistic about the electronic wallet and the much it can offer to the transportation sector. He noted that the e-mobility transaction would ease the adoption of clean-tech autonomous vehicles. He added that this could be the way to realize the dream of a pollution free, congestion less, and low cost of operation commuters.

The blockchain is associated with several benefits in the transport industry including providing easy to use payment options in the highway tolls for the electric vehicles drivers. These vehicles can also share charging systems as well as peer-to-peer roaming. According to Oxygen Initiative, the technology will also ease fee collection among people using car sharing.

Blockchains will also be a great way of helping utilities manage the power grid since, as Oxygen Initiative puts it, utility companies will pay drivers who agree to delay charging sessions. Consequently, this will result in a reduction of strain in the power grid, which is usually experienced during the peak hours. To support this, David says that drivers can sell excess energy during the peak pricing hours and use the cash to fund for the car’s operations instead of paying using credit cards or cash.

• Blockchain Embracement

Several sectors have embraced blockchain technology, with Oxygen Initiative being in their second year working with Innogy SE, which is a leading German’s energy company. With that said, the energy sector has not been left behind with Wien Energy, Austria’s largest energy company, joining other companies that are piloting the use of blockchain with the aim of reducing energy trading costs.

Other companies that have embraced the use of blockchain include Endesa, a Spanish company which on October last announced their plan open a blockchain laboratory. Previously on August, an Australian company, Power Ledger had announced that they were undertaking blockchain trials to monitor how people buy, sell, or exchange excess solar energy.

Just like many other sectors, the energy sector is also keen on embracing technology with the aim of improving consumer services. This move by the industry is reshaping the sector’s services delivery. If they can compensate people as a way of encouraging them to adopt the changes, the move can boost the industry’s efforts.