Blockchain technology, the digital ledger used in Bitcoin transactions, is being harnessed to revolutionise the power grid. LO3 Energy, a New York-based startup, has developed software that uses blockchain to record and coordinate energy transactions, allowing consumers to buy and sell excess solar energy without a utility. This ‘microgrid’ system has been trialled on a small scale in Brooklyn, and is now set to be launched in 60 countries worldwide.
LO3 Energy’s system, dubbed ‘TransActive Grid’, is a win-win for both energy producers and consumers. It enables homeowners to sell excess power generated by their solar panels directly to their neighbours, bypassing the utility and its associated costs. This peer-to-peer energy trading system can also provide a solution to the problem of energy wastage, as excess energy can be sold rather than wasted.
The implementation of blockchain into the energy sector could also have significant economic implications. By eliminating the need for a utility, the system could dramatically reduce energy costs for consumers. Additionally, the system could provide a new revenue stream for homeowners with solar panels, who could sell their excess energy for profit.
Despite the potential benefits, blockchain technology in the energy sector is still in its early stages. There are regulatory hurdles to overcome, and the technology needs to prove its reliability and cost-effectiveness on a larger scale. Yet, with LO3 Energy’s system set to launch globally, blockchain’s potential to reinvent the power grid is becoming increasingly apparent.
Go to source article: http://fortune.com/2016/05/15/blockchain-reinvents-power-grid/