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The blockchain projects making renewable energy a reality – Cointelegraph Magazine

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A lot has been stated about Bitcoin‘s carbon emissions. Far less has been said about the potential of blockchain to increase the efficiency of renewables by transparently managing supply and demand. Blockchain doesn‘t pose a threat to the planet — it’s going to play a vital position in serving to to result in a net-zero carbon emission economic system.

It’s a few years sooner or later: You might be sitting in your couch, having a good espresso after loading the washer. You’ve switched it on however, after all, the Web of Issues-enabled machine checks costs and can run when it hits a low cost electrical energy window. The Tesla outdoors within the drive is totally charged, you don‘t have any plans to go any further than the supermarket today, so the battery is available to sell its energy back to the grid and deposit tokens in your energy wallet if the electricity grid requires power.

Back to today.

Energy and electricity, in particular, are vital to our society. The grim effects on Texas in the 2021 freeze — where more than 4.5 million homes and businesses were left in the icy dark, causing misery and 246 deaths — showed us how vulnerable all our systems are to trouble with the electricity supply.

 

 

Blockchain is an essential part of turning the power grid green.

 

 

In 1882, the first U.S. electricity plant, the Pearl Street Station, started producing power for around 85 customers‘ lights in Manhattan, using DC current. Westinghouse, a rival to Thomas Edison’s firm, invented AC energy and constructed a huge hydropower plant at Niagara Falls to provide electrical energy to Buffalo, NY. Different developed international locations adopted swimsuit. The mannequin was a giant centralized energy plant that, by a grid, despatched excessive voltage electrical energy to substations and distributed it to residential and enterprise customers.

This mannequin labored nicely for greater than a century or so. It does, nonetheless, depend on giant, costly and centralized energy stations fueled by coal, pure gasoline, hydro or nuclear. It‘s a top-down structure.

Well, DER…

Now we have a new paradigm: In a transition to a decarbonized future, we have lots of Distributed Energy Resources (DERs) to deal with. These could be wind or solar generators, but they could also be battery storage, hydrogen fuel cells, smart appliances or electric vehicles. Utility company Dominion Energy, for example, is investing in a fleet of school buses in Fairfax, Virginia.

The Sun ExchangeA solar panel microgrid on a building in South Africa. Source: The Sun Exchange

Twice a day, they will be picking up and dropping off kids. The rest of the time, they sit in the depot to serve as a giant battery for the local power grid. Instead of a few large power stations, soon, we will have a very complex web of producers and consumers. In the old days, if a national grid needed more power, someone flicked a switch and another power plant came online. Conversely, if there was too much, an engineer somewhere shut one down.

Balancing all the loads from different inputs and outputs is much more difficult in a distributed system and requires a lot of AI, data analytics and some sort of transparent, accessible, trusted and un-manipulable accounting system. You might have come across something of this nature. Spoiler: These are blockchain and tokenomics.

The new energy paradigm is a rough beast, slouching to be born, to misquote Irish poet W.B. Yeats. But, we can look at a few pioneers in the field.

 

 

 

 

Distro – Port of Rotterdam

Rotterdam in the Netherlands is the largest port in the world, handling incredible amounts of cargo every day. It uses a lot of electricity. BlockLab.nl teamed up with S&P Global Commodity Insights, a giant in the field of commodity trading and analytics, to create Distro, an AI-based trading platform to buy and sell energy from a solar power microgrid on the roofs of buildings within the port complex.

It uses high-frequency trading and blockchain accounting to drive down user costs by 11%, produce returns up 14% and reduce emissions of CO2, according to an in-house analysis released October 5, 2021. The success of this pilot project has generated tremendous interest in replicating this in other places, according to James Rilett, senior director of Innovation at S&P Global Commodity Insights.

 

 

RotterdamThe Port of Rotterdam. Supplied.

 

 

BlockLab is a multi-disciplinary innovation laboratory that aims to put blockchain technology into practical use by building applications to enhance the global energy transition and optimize global supply chains. It is backed by the Port of Rotterdam and collaborates with leading universities and technology developers.

Janjoost Jullens, energy lead at the BlockLab, met Rilett at an exhibition and there was an immediate exchange of ideas. James Rilett says,

“We were already thinking about AI, blockchain, big data and the energy transition. What we wanted to do is bring the best bits of the proven evolution of energy markets to a new technological paradigm.”

The Port of Rotterdam backed the project in 2018 with a small amount of “pizza money,” with the clear direction that it had to be a practical and realizable project, not some vaporware. Distro is a peer-to-peer energy network of consumers and “prosumers.” That is, users that both generate power and consume it as well. All the energy trading is automated, so there is minimal administration needed.

“It‘s a very innovative and realistic method,” Janjoost says. “We blend together blockchain, algorithm trading, data engineering and data science — a business solution that copes with decentralization.”

Blockchain is the “special sauce,” as James describes it, that ensures that transactions are fair, transparent and reconciled, which is a big issue in the conventional energy trading world.

“The platform has hosted 20 million blockchain-validated, cleared and settled transactions. The blockchain lowers the price at which it is sensible to manage microtransactions because it‘s beautiful technology out of the box that helps those transactions clear in a trustful way. It is unique and new to the power market.”

They are working on scaling this technology to larger projects. The first will be implemented in the Port of Rotterdam industrial area, which accounts for 35% of the Netherlands‘ entire carbon emissions, and the second is a microgrid development in California.

Another niche use is “Shore Power.” Docked ships need variable power, usually using diesel generators, and produce fine dust air pollution. Distro is working on replacing this with clean energy supplied by renewables to overcome this problem.

 

 

Powerledger announced as a winner at the World Summit Awards (@WSAoffice) in the Environment and Green Energy category, for our peer-to-peer energy trading project in Uttar Pradesh, India!

Read more here: https://t.co/klyrqu0m5B#wsa2021 #UN #wsa2022 #HackTheGap #UNSDGs pic.twitter.com/aPQulKFeGO

— Powerledger (@PowerLedger_io) February 7, 2022

 

 

Ledger of Power

Australia’s Powerledger is pushing ahead with decentralized markets in order that renewable energy era, storage and buying energy are harnessed in an optimum manner. It goals to increase the usage of renewables by utilizing superior buying and selling between microgrids to make sure that excessive penetration ranges won’t trigger grid instability.

Guaranteeing continuity in transmission and distribution is important with intermittent renewable energy sources to keep away from typical grid failures, together with not solely blackouts however brownouts, the place the grid falls beneath its working parameters and causes issues with gear.

It has already established nearly a dozen projects in Australia and numerous different international locations. Powerledger launched the Solana-based token POWR on Coinbase and Binance final 12 months.

Jemma Inexperienced, Powerledger govt chairman and co-founder, tells Magazine:

“What happens is that energy companies often bundle fossil fuel energy into the mix to make up for holes in the supply of intermittent renewable energy.”

She believes that storage, together with EV batteries and the usage of superior market software program, will bridge that hole as extra renewables come into the energy combine.

Powerledger‘s uGrid software is being used in Thailand in project T77 to trade rooftop solar power between an international school, apartment complex, shopping center and dental hospital in Bangkok. This blockchain-based software is the backbone of the peer-to-peer trading system that enables energy distribution within the community. This is cheaper than the grid and reduces emissions because the generation is local and not from a distant power station. The key technology is a blockchain app that trades energy between participants rapidly to get the best price in a microsecond-by-microsecond fluctuating market of supply and demand.

 

 

 

 

Powerledger is working on 30 projects in 11 countries, so these different energy technologies are being put through their paces to validate their performance. Green says:

“People are, understandably, apprehensive about any new technology, but blockchain is the building block for a whole new internet. It’s a complete new period the place you possibly can take the solar‘s rays and turn it into a currency.”

There is a lot of potential for these projects across the developing world, perhaps in the way that smartphone banking applications leapfrogged the Western concept of high street banks and went straight to mobile users in Africa and Asia.

Justin Sun not involved

Across Asia, numerous other projects harnessing sustainable energy and blockchain are being implemented. Launched in 2015, The Sun Exchange‘s micro-leasing marketplace in South Africa brings individual and corporate energy investors to off-grid energy development. Tokens are a way to finance a project without going down the route of conventional capital, which not all projects can.

Blockchain can also be valuable for measuring, recording and verifying greenhouse gas emissions. ECO2 Ledger uses blockchain technology to make carbon credit data more reliable and traceable in the voluntary carbon market in China, where individuals can track their carbon emissions on the MyCarbon app and trade with those who need carbon credits. Launched in mid-November 2019, it quickly accumulated over 500,000 users, with its website claiming to have traded 100,000 tons of carbon credit.

MyCarbonMyCarbon Phone App. Source: ECO2 Ledger

Trading in Renewable Energy Certificates (called by various names in different markets) is important. The production, trade, distribution and consumption of renewable energy can be electronically documented and tracked with this method, creating carbon credits for verifiable carbon generation. In the developed world, this is an established and regulated market. In the developing world, where it is often voluntary, there can be a lot of issues: transparency of tracking, fraud and unacceptable transaction costs.

Swiss-based Energy Web Foundation (EWF) is a nonprofit founded in 2017 that is developing publicly available and decentralized solutions designed specifically for the energy sector. EWF’s Energy Internet Origin (EW Origin) is a suite of open-source and totally customizable software program instruments for constructing blockchain platforms for straightforward and environment friendly renewable energy sourcing in step with the prevailing requirements and laws.

They’ve projects in Thailand, Turkey and El Salvador. Mercados Eléctricos16 (MERELEC), an electrical energy buying and selling company working throughout Mexico and Central America, is executing a pilot platform to evaluate a enterprise case for the technical feasibility of a blockchain-based regional carbon credit score buying and selling market. That is a fledgling challenge, began in 2019, and it has not been with out challenges. Knowledge acquisition has been a drawback because of the variety of units. Lack of know-how of blockchain has been one other. As these credit are voluntary, there appears to have been a lack of shoppers. However, good projects will overcome early difficulties.

 

 

EZ BlockchainEZ Blockchain’s cellular bitcoin mining heart in operation at a energy plant. Supply: EZ Blockchain

 

A flare for flares

Loads of pure gasoline is misplaced, being flared (burned) as an alternative of getting used. It’s probably hazardous and sometimes uneconomic to course of and promote. That is very wasteful. EZ Blockchain, based in america in 2017 by Sergii Gerasymovych, makes use of this waste gasoline. He explains, “We utilize that energy, convert it into electricity and mine Bitcoin.” The firm’s product is a cellular information heart that may be placed on a gasoline web site and use surplus gasoline to generate energy — a neat trick.

“There may be a lot of energy within the energy grid that’s wasted. If there’s extra energy within the grid, we use it to mine Bitcoin. If there’s a scarcity, then our information heart shuts down. It‘s balancing supply and demand.”

The company is running flat out and installing new mining data centers every day. It has over 60 operating in the U.S. and Canada, some directly owned by EZ Blockchain, others by the energy companies themselves. They are building around a dozen more each month and are hooking their data centers up to renewable microgrids.

“Our company is focused very much on incentivizing renewable energy,” Sergii says.

 

 

 

 

“What I mean by that is renewable energy such as wind or solar requires a consistent user of power in order to be profitable. So, with the help of batteries, solar panels or wind turbines and cryptocurrency mining as a constant load, we can provide the companies that invested in renewable assets a much quicker return on investment. It can use the excess energy instead of being shut down when the wind blows, but there is not enough demand.”

He adds:

“The future is bright but there is a lot of work. We are at the stage where we are massively expanding. We literally hired ten people last week. So, the company’s rising exponentially.”

Placing the items collectively

Decentralized energy programs — native and low carbon — are the best way ahead for energy transmission and distribution. Couple that with IoT, AI, machine studying, huge information and different technological improvements, in addition to rather more granular consumer management, a decentralized monetary and accounting system might be required to make sure transparency, safety and accountability. There‘s actually just one expertise that matches the invoice: blockchain.

 

 

 

 

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