The world is rapidly developing the technology that allows energy flows to be determined by market forces. There is little doubt that transactive energy is in the future of electric power in North America, which already has continental grids, and in the EU with the development of the EU's supergrid.
The Rocky Mountain Institute and Grid Singularity (a blockchain technology developer) have created the Energy Web Foundation (EWF), a non-profit organization whose mission is to further the development of transactive energy by accelerating the commercial deployment of blockchain technology in the energy sector. Initial supporters are Centrica plc, Elia, Engie, Royal Dutch Shell plc, Sempra Energy, SP Group, Statoil ASA, Stedin, Technical Works Ludwigshafen AG (TWL), and Tokyo Electric Power Co (Tepco) who have provided a first round of funding of $2.5 million.
Blockchain is a decentralized, distributed database for managing transactions. Blockchains provide a global infrastructure untethered from the stability or permission of governments and institutions. It is the technology underlying Bitcoin. Nasdaq and other financial institutions including banks have been experimenting with and developing applications based on blockchain technology. Nasdaq has opened its blockchain services framework to more than 100 of its market operator clients around the world. Earlier this year Nasdaq demonstrated a blockchain service that lets solar power generators sell energy certificates.
Blockchain technology has the potential to play a significant and potentially game-changing role in the energy sector by providing the financial infrastructure for transactive energy. Blockchain technology could provide the transactional infrastructure enabling millions of energy generators (for ex, rooftop solar PV) and energy consumers (HVAC systems, water heaters, electric vehicles) to transact with each other. Blockchain also provides higher levels of cybersecurity. Grid Singularity with its partner Parity Technologies is leading the development of an open-source, energy-specific blockchain infrastructure that will be maintained by EWF and supporting affiliates.
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