Blockchain Electricity Trading Solution Pilot Announced By Toyota, UTokyo And Trende

Blockchain, Innovation | May 24, 2019 By:

Japanese automotive manufacturer Toyota is collaborating with the University of Tokyo and renewable energy retailer TRENDE to conduct pilot for a blockchain-powered electricity system.

The pilot, which is scheduled to commence on June 17, will test a next-generation electricity system (P2P electricity transactions) that enables homes, businesses, and electrified vehicles connected to the electricity grid to trade electricity using blockchain.

According to Toyota, Japan’s electricity supply system is in a transitional state as it shifts from its traditional large-scale consolidated system to a distributed system by which individuals and businesses own their own power supply. The objective of the pilot is to verify the economic advantage of having prosumers, who generate electricity with their own distributed power supply, trade electricity with electricity consumers, via an electricity exchange market.

“Specific steps of the test include the establishment of an electricity exchange accessible by households and businesses participating in the test, and the installation of an AI-powered electricity management system (an electricity trading agent) in each household and business,” Toyota said.

The AI-based electricity trading agent will place buy and sell electricity orders on the exchange based on the participants’ electrical consumption. It will also calculate forecasts of the electrical power to be generated by solar panels on the premises.

Toyota claims that the pilot is the world’s first test for electricity trading between individuals that incorporates PHEVs as a distributed power supply, in addition to solar panels and secondary batteries. It aims to verify the economic benefit of having electricity consumers and prosumers trade electricity via market transactions and of utilizing an algorithm to predict electricity demands of electrified vehicles.