Renewable energy generators and industrial consumers connected via blockchain
On 24 January the German energy optimiser and service provider ESFORIN SE and Statkraft Markets sold one megawatt hour of electricity in the intraday market from Statkraft's EEG portfolio to a demand side management customer of ESFORIN SE - without any intermediate platform.
The one megawatt hour of renewable power was traded as part of the pilot phase of the Enerchain project. Enerchain makes it possible to conclude transactions "peer-to-peer" without the need for a marketplace operated by third parties. Under real market conditions, both Statkraft and ESFORIN demonstrated the possibilities of block chain technology in the volatile and short-term electricity market.
“This is an innovative energy turnaround. We support grid stability, avoid unnecessary costs for the general public and our customers earn money with their flexibility and at the same time reduce CO2 emissions," says Christoph Gardlo, Chief Operating Officer of ESFORIN SE.
“We see that in four to five years' time, Blockchain will be able to provide many rapid, low-cost transactions in an electricity market with a growing share of renewable energy," says Torsten Amelung, Managing Director of Statkraft in Germany.
“We are one of the leading companies in the field of market access for renewable energy in Europe. Here, of course, we are concerned at an early stage with how our business processes can benefit from blockchain," he adds.
In the medium term, blockchain technology will enable industrial large-scale consumers with flexibility potential in their production processes to react directly to price signals and hence fluctuating generation from renewable sources. This optimises the costs on the consumer side and at the same time helps keeping the electricity grid stable. The ability to combine generation and consumption at short notice provides ad hoc relief in the grid without having to call up control power or take feed-in management measures.
In addition to new marketing opportunities for flexible power generators and consumers, blockchain technology offers potential for savings and optimisation along the entire trading value chain through automated peer-to-peer communication, such as broker or clearing costs, REMIT reporting or streamlining of back office processes.