Joao Francisco writes on the Business Blockchain HQ website about how several German companies are using blockchain to help deploy renewable energy in the energy transition to a low-carbon economy.
Blockchain Plays Leading Role in Germany’s Renewable Energy Evolution
Germany’s renewable energy push is taking shape as the country abandons coal and nuclear-based energy generation. The country has set itself the target of 2022 for the decommissioning of all nuclear-based electricity production. All coal-based energy production will meet the same fate by 2038. This has prompted numerous renewable energy companies to come into play to fill the gap that will create by this shift. So, where does blockchain come into play in this push for renewable energy? The underlying technology behind blockchain, the Distributed Ledger Technology (DLT) is gradually becoming the foundation for several systems developed in Germany’s push for advanced renewable energy.
Greentech Energy Companies and the Use of Blockchain
Greentech energy startup such as Lition operates a blockchain-powered marketplace where customers can choose any energy provider they want. The energy transition or the Energiewende as the Germans call it is changing the pattern of energy production from a national level to more of the regional or local level. The present slightly centralized power infrastructure may not be adequate for energy production involving a huge amount of biomass, solar energy, wind, and other types of low energy-producing stations.
There is a clear need to move away from a more centralized unit of energy production to a decentralized one. For a smother shift to decentralized power production, blockchain can prove highly beneficial. The view is that blockchain can facilitate less dependence on the power grid and neighborhoods can move towards self-sufficiency.
As energy consumption rises and more appliances and devices become part of daily activities. It is becoming imperative that people have easy and simple access to energy, which will be brought about by the decentralization of power production aided by blockchain.
Germany’s Attitude towards Blockchain
The environmental setting in a country is often one of the determinate of how fast blockchain is adopted and implemented across various industries. In Germany, the attitude towards blockchain is generally positive with the hotspot for blockchain activities being Berlin.
Germany even has its own national blockchain strategy, which was launched in September 2019. This is encouraging for blockchain projects such as blockchain-based energy platforms. Although there are still legal gray areas regarding operation. However, generally, the German government has shown serious interest in exploring blockchain.
Germany’s Blockchain-Based Renewable Energy Platform
As mentioned earlier, several blockchain-powered energy platforms are starting to spring up in Germany as the country embarks energy transition. We starting to see companies like Lition, Wasserkraft Mittelrhein come into the energy scene. These companies are embracing the blockchain solution in providing energy trading services to consumers.
On the global stage, we see companies like Vodafone and Energy Web striking a partnership relationship to bring blockchain solutions to energy production. This kind of partnership will see DLT combine with IoT to provide a secure identity for renewable energy assets like solar panels, wind turbines, heat pumps, and batteries.