Blockchain can help mitigate the costs of dealing with issues caused by distributed and intermittent generation
A new report from Navigant Research examines potential use cases for blockchain in transactive energy (TE) systems within the distribution grid.
TE is a two-way grid management approach that ensures the proper functioning of power networks that have large amounts of distributed energy resources (DER) and allows DER owners to earn a commensurate return on their investments. Blockchain, a technology that supports decentralized transaction types, has emerged as a potential technology to underpin a TE platform in the utility industry. Click to tweet: According to a new report from @NavigantRSRCH, while not a one-size-fits-all solution, blockchain has the potential to deliver significant benefits to a TE platform.
“Are TE and blockchain an appropriate match in practice? There is no simple answer to that question because of the many different blockchain applications and TE programs,” says Stuart Ravens, principal research analyst with Navigant Research. “We do know that blockchain’s distributed ledger has many advantages over centralized databases.”
Blockchain, as part of a TE platform, could help mitigate the costs of dealing with the issues caused by distributed and intermittent generation, including power quality, equipment reliability, and network balancing. Historically, the costs for these issues have been borne by the utility customer base, leading to complaints that traditional customers are unfairly burdened for the benefits enjoyed by DER owners.
The report, Blockchain for Transactive Energy Platforms, discusses potential blockchain use cases in TE systems. The study discusses the diversity of scenarios, application goals, and flavors of blockchain applications and TE programs. It also examines the requirements for TE, what blockchain brings to the TE table and provides recommendations for potential developers of TE solutions employing blockchain technology. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Blockchain for Transactive Energy Platforms, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.