Blockchain technology has many applications. It can be used in different industries to streamline the processes and also for cutting costs.
Reports have come in that a group of technology and energy firms from Japan is planning to launch a pilot project that will enable consumers in rural areas to trade renewable energy by using the blockchain technology.
What is the project?
The project is scheduled to take off in June this year, and the Ministry of the Environment has endorsed it. Energy trading startup Power Sharing will be supervising the project while energy corporations like Tokyo Electric Power Co and financial bank, Softbank, will be providing the technological support.
Softbank wants to lend its capacity to authenticate critical information about the trading of renewable energy such as “who, what, when, where, how much.” After authentication, the data and the energy trades will be recorded and transacted over the blockchain platform. This will be done jointly by the participating entities.
Softbank hopes to use the customer-to-customer mechanism to provide incentives to people living in the rural parts of Japan so that they switch to renewable energy. The people opting for this procedure will have the option of selling off any extra energy.
It can be argued that traditional centralized systems can also provide a platform for renewable energy trading. However, the firms engaged in this project have argued that the process becomes extremely complicated when used on a large-scale. The existing systems are now only being used by large corporations.
This pilot project, which is in sync with Japan’s efforts to reduce carbon dioxide emissions, is one of the latest attempts by prominent organizations to reduce the emission of carbon-dioxide in the energy sector by using the blockchain technology.