An alliance announced in March could result in one of the most complete blockchain-based energy trading pilots to date — by adding batteries into the mix.
Sonnen’s decision to join the NEMoGrid project in Europe is thought to be the first instance of a battery vendor taking part in a blockchain energy trading experiment.
The project will look at the economic and technical impact of electricity trading between households within a region, said Sonnen in a press release.
According to the NEMoGrid website, the project will evaluate three business models: centralized utility management, decentralized voltage and power-based tariffs, and a peer-to-peer market using the Ethereum blockchain for transaction recording.
One of NEMoGrid’s aims is to investigate the interaction between electricity tariffs and peer-to-peer trading, as well as the impact of trades on the stability of local distribution grids.
“The goal of energy supply must be to generate as much clean energy as possible right where it is being consumed,” said Jean-Baptiste Cornefert, managing director of sonnen eServices, in press materials.
“If households can sell their own power to their neighbors, this influences local electricity prices and the power grid. Ideally, people would trade in energy and at the same time stabilize the local grids, thus avoiding expensive grid interventions whenever possible.”
Battery storage is seen as being a key ingredient in helping to maintain this grid stability and pricing flexibility, soaking up excesses during periods of high energy production and returning it to the grid when demand outstrips supply.
Blockchain technology, meanwhile, will give residential participants and distribution grid operators a single, distributed ledger of all energy transactions, while reducing the cost of trading.
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