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.
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.
@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/ ( - 5 days ago)
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. (6 days 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 ( - 6 days ago)
@INVADEH2020 : 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. Read more and see photos: ( - 6 days ago)
@INVADEH2020 : Communication technology is not only what type of data will be shared between different users, but also identifying the steps to follow to achieve a total and bidirectional integration between cloud platforms and field devices and systems at consumer’s sites, taking also into account that it should be scalable enough to accept new devices in a simple way. In INVADE, the protocols and standards of the different equipment and systems which can be installed at pilot sites have been defined, as well as all types of existing communications both with the cloud system for flexibility services, as well as between the devices themselves. You can access Deliverable 7.1 Communications Specification Plan at: ( - 1 week ago)
@INVADEH2020 : Communication layer facilitates the integration of #storage #EVs #prosumers #DistributedGeneration according to the… https://t.co/78xepSWAK1 ( - 1 week ago)
@INVADEH2020 : The long planning horizons for #storage is decomposed into a bi-level optimization problem including a #battery inv… https://t.co/xVj8N2hJGj ( - 2 weeks ago)
@INVADEH2020 : Deliverable 5.3 provides a general planning algorithm to find optimal battery size and optimal battery location fro… https://t.co/SMiY9FYbwT ( - 2 weeks ago)
@INVADEH2020 : Deliverable D5.3 provides a simple model for flexibility operation and planning to serve distribution system operators (DSO), balance responsible parties (BRPs) and Prosumers. This is a simplified model that will be initially implemented in the integrated INVADE Platform (IIP). This report contains the first version of flexibility management allocation and operation algorithms. The first part of D5.3 contains a description of the flexibility management algorithms that is used in the daily operations of the Integrated INVADE Platform (IIP). First, the basic modelling concepts are proposed and discussed with regards to flexibility from stationary batteries, loads, EVs and flexible generation. This is followed by a discussion of possible approaches for handling uncertainty, including the length of the planning horizon and how detailed the time resolution should be. Finally, the simplified version of the mathematical formulations of flexibility assets is given. A key finding in the document is that the way to model flexibility and how much value that can be extracted from the flexible sources, are tightly connected to the amount of information that is available The second part of D5.3 focuses on models and algorithms for optimal decision on battery size and placement by considering the operational constraints. A simplified planning strategy that leverages the control strategies of battery charging and discharging to find the optimal location and size of batteries in distribution system is presented from both prosumer and DSO perspectives. This is complemented with illustrative examples on battery-PV sizing analyses for prosumers. You can access D5.3 at https://h2020invade.eu/deliverables/ ( - 2 weeks ago)
@rgallartf : RT @rgallartf: El pilot català del projecte @INVADEH2020 ha presentat l'evolució de la tecnologia i la seva integració tecnològica entre el… ( - 3 weeks ago)