Blockchain and its application in the energy sector

By Mari Kristine Buckholm, Smart Innovation Norway 25. May 2018

Blockchain is one of the world’s leading software platforms for digital assets, and the new technology can be used to build a radically better financial system.

Blockchain technology has become known to more and more people in all corners of the world over the past few years. But, what is it exactly?

Sea of possibilities

A blockchain is defined as a digitized, decentralized, public ledger of all cryptocurrency transactions. This new technology is a perfect example of the ongoing digitalization wave and represents endless possibilities, pros and cons included:

“Blockchain is decentralized and highly transparent, because anyone with access to a blockchain can view the entire chain. That also means that security is good, it relies on cryptographic algorithms that make it very difficult to malicious changes in the ledger,” explains Terese Troy Prebensen, CEO of Fredrikstad Energi Marked.

CEO of Fredrikstad Energi Marked AS, Terese Troy Prebensen.

The cons of blockchain, on the other hand, are related to energy consumption, lack of regulation and exchange fees.

Unique energy solutions

Today, blockchain technology does not yet play a significant role in the energy sector.

«With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. That means it’s possible to do transactions of energy from consumer to consumer, but the regulation of energy transmission with grid hire does not benefit from this today,” notes Troy Prebensen.

However, she is convinced blockchain technology will radically benefit the energy sector in the near future.

“With smart neighborhoods, blockchain can get a unique settlement solution in areas where energy can be produced and traded locally. This requires changes to the grid regulations, or new forms of contracts between areas / neighborhoods and the grid company,” the CEO emphasizes.


What is blockchain?

  • A blockchain is a digitized, decentralized, public ledgerof all cryptocurrency transactions.
  • Constantly growing as ‘completed’ blocks(the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping.
  • Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
  • Originally developed as the accounting method for the virtual currency Bitcoin, blockchains – which use what’s known as distributed ledgertechnology (DLT) – are appearing in a variety of commercial applications today.
  • Currently, the technology is primarily used to verify transactions within digital currencies, though it is possible to digitize, code and insert practically any document into the blockchain.
  • Doing so creates an indelible record that cannot be changed; furthermore, the record’s authenticity can be verified by the entire community using the blockchain instead of a single centralized authority.

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INVADE updates

Science blog: INVADE inspired by Amazon and Airbnb

The work package WP9: Business models and market structures, led by INVADE project partner Lyse has put forward a market structure for platform-based business models inspired by disruptive companies like Amazon and Airbnb. (3 weeks ago)

@INVADEH2020 : Work package 9 Business models and market structures, led by project partner Lyse has put forward a market structur… https://t.co/xC50UvJELK ( - 3 weeks ago)

@INVADEH2020 : "The work package WP9: Business models and market structures, led by INVADE project partner Lyse has put forward a market structure for platform-based business models inspired by disruptive companies like Amazon and Airbnb," writes Smart Innovation Norway researcher Bryan Pellerin in this INVADE science blog article. Read more: ( - 3 weeks ago)

@INVADEH2020 : Renewable energies and electric vehicles (EVs) change the way we consume and produce electricity. It also changes the way those who manage and distribute it must think about the electricity system – to always provide the best possible service for the connected costumers. The goal of the EU funded Horizon2020 project INVADE is to greatly speed up this process, by showing that the technologies and solutions we have today, only must be connected in new ways to solve the challenges of tomorrow. Watch the official INVADE film to understand how: ( - 1 month ago)

@INVADEH2020 : As part of the European Sustainable Energy Week (EUSEW), the Sustainable energy days in Albena last week was an informative event/workshop about the innovations and optimizations in the energy field the company is introducing (https://www.eusew.eu/energy-days/eu-sustainable-energy-days-albena-bulgaria). One of the projects presented was the EU Horizon2020 project INVADE (www.h2020invade.eu). Two INVADE partners were represented, Albena Resort, Bulgaria and Smart Innovation Norway. Researcher Bryan Pellerin presented INVADE to the local stakeholders and got to exchange with Albena’s partners (both hotel managers, guests and more technical people) about what the project is addressing. "This is a part of our work package 3 focused on exploitation. We also toured their facilities (farm, wine yards, biogas plant), which was very interactive and puts INVADE in context of their other sustainability activities," explains Pellerin. ( - 1 month ago)

@INVADEH2020 : This week is @euenergyweek, the annual flagship event organised by the @EU_Commission. Achieving #sustainable… https://t.co/wWKrc2VOQp ( - 2 months ago)

@INVADEH2020 : This week is the EU Sustainable Energy Week (EUSEW), the annual flagship event organised by the European Commission. Achieving Sustainable Energy is within the INVADE goals. HOLD THE DATE for "INVADE Barcelona 2019" on the 20th of November, as a side event of Smart City Expo World Congress, to see what we have done in the project. ( - 2 months ago)

@INVADEH2020 : In the INVADE project, a central delivery is the cloud-based Integrated INVADE platform, which will be used by the Flexibility Operator to manage #flexibility from flexibility providers and offer this to flexibility customers. It is crucial to specify how data can be sent to and from the Integrated INVADE platform through its communication platform API pilot by Pilot. You can access Deliverable 7.2 "Specification of the CP-API-functions" at https://h2020invade.eu/deliverables/ ( - 2 months ago)

The pilots have begun testing the INVADE integrated platform: “An excellent example of how we can bring flexibility and storage technology to the end-users”

In the end of May, the INVADE consortium was gathered in the Netherlands. During the two-day meeting, all five pilot owners presented their progress to the project partners. (2 months ago)

@INVADEH2020 : In the end of May, the INVADE consortium was gathered in the Netherlands. During the two-day meeting, all five pilo… https://t.co/H7CYKd3zyO ( - 2 months ago)