Neighbors throughout the New York borough of Brooklyn are buying and selling solar power from each other on a blockchain platform the first of its kind in the world and a starting point for developing other joint microgrid projects in US and other countries.
What blockchain can do for power grids?
The results show that electricity bills can be reduced by up to 31% Ref. . They are able to achieve greater self-sufficiency and reduce the grid load.
How does Brooklyn microgrid work?
Brooklyn Microgrid allows residents of Brooklyn to sell energy back at their local utility. This is known as net Metering. It also allows those without solar panels, to purchase green power credits through their neighbors. Brooklyn-based energy startup LO3 Energy has created the blockchain platform for microgrid.
What is blockchain energy trading?
BlockchainP2P-enabled energy trading allows prosumers to directly sell excess electricity to local consumers, without the need to go through a retailer. This creates mutually beneficial transactions.
What is the blockchain?
Blockchain is a distributed ledger that records all transactions in a peer to peer network. Participants can verify transactions using this technology without the need for a central clearing agency. Applications that could be used include fund transfers, settlement trades, voting, among other things.
What is grid blockchain?
TheBlockchain Grid project investigates the question of how electricity produced by various producers on the basis of fluctuating renewable energy sources can be optimally fed into the grid by using a flexible system of free grid capacities.
How will blockchain benefit the energy industry?
Blockchain is a promising tool in the energy sector to record and facilitate transactions between consumers and generators of energy. This includes a variety of use cases such as: Peer to peer electricity trading: Sell excess renewable energy to other participants through automated smart contract.
What is a microgrid system?
A microgrid refers to a small-scale, independent power grid that can either work in concert with other small grids or independently. Microgrids can be used to produce embedded, distributed, decentralized, local, or district energy.