Global Energy Giants to Develop Blockchain

Announcements, Blockchain, FinTech, Innovation, Investing | May 18, 2017 By:

A group of global energy giants are developing commercial blockchain solutions to help customers save on costs.

SP Group, Singapore’s electricity and gas provider, is collaborating with global energy companies in order to develop blockchain solutions to help lower utility costs for customers and also make it easier to integrate renewable energy sources.

SP Group will be partnering with British utility Centrica PLC, French utility company Engie, US-based Sempra Energy, Dutch provider Stedin, German giant Technical Works Ludwigshafen AG (TWL) and Japanese provider Tokyo Electric Power Co (Tepco). It will also partner with oil and gas companies Royal Dutch Shell and Statoil ASA; and transmission system operator, Elia.

The companies are working together to support the Energy Web Foundation (EWF), a commercial blockchain deployment accelerator. The EWF aims to reduce the transaction costs associated with centralized ledgers by using blockchain technology to generate a single logical copy, eliminating the necessity for reconciliation and settlement. EWF claims blockchain allows for the capability of millions of devices to “transact with each other at the distribution edge while providing support to utilities and grid operators to integrate more utility-scale variable renewable energy capacity at much lower cost.”

Hervé Touati, CEO of RMI and president of EWF, said that the main challenge for the electricity sector in the 21st century is to integrate more renewable energy into the grid in a cost-effective way in light of very flat or declining demand. He said that the only way to know how to do this is to automate the demand side, allowing many more participants in the network.

“We are thrilled by the potential of blockchain technology as an enabler to realize that vision,” said Touati. “Blockchain will not be the only fundamental element of the 21st century network, but it is very likely to be a key element. It also provides much higher levels of cybersecurity essentially free of charge, addressing as a byproduct one of the top concerns of utility executives when it comes to distributed energy resources.”

May Liew, Director of Strategic Development at SP Group, stated that the company is constantly seeking new technologies and solutions to create a future-ready and sustainable network.

“We are working towards transformational solutions to serve customers better, as we transition towards a cleaner, more resilient and cost-effective energy future,” said Liew. “We look forward to working with respected industry partners to accelerate the deployment of blockchain to help our consumers save energy and cost, and enhance their quality of life.”