Blockchain is being used to optimise performance across the board where wholesale digitalisation of trading processes, asset management and demand response is standard. Its adoption by sector operators is clearly visible but is everyone jumping on an untested bandwagon for fear of missing out or will its wide range of possible applications help deliver a leaner industry resulting in reduced costs and a more efficient transition? Gaurav Sharma reports…
Use cases for the deployment of blockchain in the energy sector seem to be growing by the day with practically every segment from natural gas trading to fuel procurement up for grabs. An entire industry, often deemed old fashioned by technologists, now appears smitten by blockchain in its quest for efficiencies in an era of relatively low oil prices and shifting consumer behaviour.
In simple terms, a blockchain is akin to a digitally distributed ledger that can be replicated and spread across many nodes in a peer-to-peer network, thereby minimising the need for oversight and governance of a single ledger. It is the platform underpinning cryptocurrency Bitcoin.
For a sector infamous for copious amounts of paperwork from bills of lading to tender submissions, a tool to securely digitize and save is an enticing one. Energy blockchain streams could be split three-ways: process applications (energy trading, grid management, payments and supply chain solutions), end-user deployment, and component (including service platform) solutions.
Cataloguing movers and shakers
The enthusiasts’ roster includes a veritable who’s-who of the energy business. For instance…