Siemens partners with LO3 Energy for blockchain-powered microgrid

FinTech | November 30, 2016 By:

Siemens and the New York startup LO3 Energy are collaborating to jointly develop microgrids that enable local energy trading based on blockchain technology.

The microgrid, which is being planned for Brookyln and was initially started as a pilot project of LO3 Energy, is now being developed further with the aid of Siemens Digital Grid in the U.S. For the first time, a microgrid control solution from Siemens is being combined with the peer-to-peer trading platform from LO3 Energy called the TransActive Grid.

“The constant evolution at the grid edge requires advanced control, automation and data analytics technologies enabling secure, stable and reliable integration of decentralized energy systems as well as supporting the establishment of new business models. We’re convinced that our microgrid control and automation solutions, in combination with the blockchain technology of our partner LO3 Energy, will provide additional value for our customers whether on the utilities side or on the prosumer side,” said Ralf Christian, CEO of Siemens’ Energy Management Division.

“In the world of finance, blockchain technology is rapidly advancing across many sectors, but in the energy market, things are comparatively different. With our microgrid solution in Brooklyn, we’ll demonstrate just the beginning of what blockchain can do in the transactive energy world,” said Lawrence Orsini, founder of LO3 Energy.

The Brooklyn project thus also fully supports New York State’s new energy strategy, “Reforming the Energy Vision” (REV). With the help of this strategy, the state’s power supply industry is to be reorganized to increase grid efficiency, minimize the power supply system’s susceptibility to environmental disasters, and improve this system’s carbon footprint. Based on experience with the pilot project in Brooklyn, Siemens and LO3 Energy intend to implement additional blockchain-based microgrid and Smart City projects to test out various other business models and gain insights about the replicability of solutions on other regions of the world.