Blockchain is truly revolutionising the world we live in: transforming sectors such as real estate, finance and now, even energy. While the world is fighting to reduce its carbon imprint and reduce the amount of coal used, a Japanese corporation and a US-based energy company are creating the next energy source – one based on blockchain.
LO3 Energy, a New York-based energy company and Kyocera Corporation announced they are partnering on a join project to test the viability of VPPs, or blockchain-managed virtual power plants, based on P2P distributed network. The pilot program will take place in the office of Kyocera Corporate, where the VPPs will utilize the Japanese company’s solar photovoltaic (PV) modules.
More interestingly is that LO3 Energy will actually manage the energy flow using a distributed ledger technology. According to press, the DLT will be used to verify and record transactions, which will enable users to “share” the energy they produce and eliminate burdens on the energy grid.
This type of energy management increases the efficiency and energy flow greatly, two issues that are experienced constantly in countries around the world, especially in countries that do not rely so much on renewable energy and smart, innovative solutions to solve their energy issues and meet the energy needs of the societies.
The two companies hope to test the energy system distribution with this DLT-based project and hopefully help countries around the world reduce their carbon emissions and improve the quality of lives for people.