Blockchain Solution Developed by European Power Exchange

News | December 13, 2017 By:

European power exchange Epex Sot has teamed with blockchain startup LO3 Energy to develop blockchain solutions aimed at connecting microgrids to the wholesale market.

Epex Sot is an exchange for power spot trading in Germany, France, the United Kingdom, the Netherlands, Belgium, Austria, Switzerland and Luxembourg. Epex Sot is one of the stakeholders in the Multi-Regional Coupling which currently connects markets representing 85% of the European power consumption. It also operates the Hungarian market on behalf of the Hungarian Power Exchange HUPX.

New York Based LO3 Energy is building a platform to enable decentralized business models and innovative technologies related to energy, clean-tech and utility systems. The company builds tools and develops projects to support and accelerate the proliferation of the distributed energy, utilities and computation sharing economy of the future. Its flagship project, the Brooklyn Microgrid, was the world’s first blockchain-based microgrid.

The first phase of the partnership will involve pilot projects in Europe. The LO3 technology will be deployed in community microgrids, and the two partners will connect these local peer-to-peer markets to the EPEX SPOT wholesale markets. This will enable microgrid participants to obtain greater value for their distributed energy resources, through increased flexibility, transparent price signals, and other value streams, such as predictive analytics.

“LO3 Energy and Epex Sot are joining forces in order to tackle the challenges of the energy sector, which are of unprecedented dimension,” said Jean-François Conil-Lacoste, Chairman of the Management Board of Epex Sot. “Innovative digital solutions are needed to further serve the market in this industry revolution and to drive forward the energy transition.”

“Running on Exergy, this partnership will represent one of the most disruptive applications of technologies in the power markets,” said LO3 Energy CEO and founder Lawrence Orsini.