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.
What is the added value?
In a few weeks the INVADE integrated platform will be up and running and the pilot owners are both hopeful and excited about what the results will show. (4 hours ago)
@INVADEH2020 : In a few weeks, the INVADE integrated platform will be up and running and the pilot owners are both hopeful and excited about what the results will show. Read more: ( - 6 hours ago)
@INVADEH2020 : In a few weeks the INVADE integrated platform will be up and running and the pilot owners are both hopeful and exci… https://t.co/EhKtvElRCA ( - 6 hours ago)
@INVADEH2020 : The INVADE project has developed 4 Use Cases with mobile, centralized, distributed and hybrid #storage. D4.1 shows… https://t.co/6KXhmZMqqW ( - 1 day ago)
@INVADEH2020 : INVADE has defined a new role within the power system, an Independent Flexibility Operator for offering flexibility services to DSO, BRP or end-users with flexibility sources as storage, electric vehicles, renewable generation and demand response from prosumers. The added value of the flexibility operator has been identified for 4 Use Cases: mobile, centralized, distributed and hybrid storage. The architecture for providing such flexibility services in a cloud-based platform from the flexibility sources is based in SGAM for assuring interoperability, and it includes function, component, information and communication layers. Read more in Deliverable 4.1: ( - 1 day ago)
@INVADEH2020 : INVADE has defined the Flexibility Operator role that pools the small flexibility of customers to make use of them… https://t.co/yT94XP4HLS ( - 1 day ago)
The Bulgarian INVADE pilot is now making its final preparation steps to go live. So far, the testing and results have been sensational. (3 days ago)
@INVADEH2020 : The Bulgarian INVADE pilot @AlbenaResort is now making its final preparation steps to go live. So far, the testing… https://t.co/lpiILcWpOI ( - 3 days ago)
@INVADEH2020 : The Bulgarian INVADE pilot Albena Resort, Bulgaria is now making its final preparation steps to go live. So far, the testing and results have been sensational. Read more: ( - 3 days ago)
@polivros : RT @polivros: That is a clear signal for new companies developing home energy management systems and aggregation tools. Let's go for it! #E… ( - 3 days ago)