Blockchain-Based Solar Energy Trading Initiatives are Working
Blockchain technology has practically only been in use in finance and cryptocurrency. And the distributed ledger system’s relevance in a variety of areas of business is gradually coming to light. With that, the first use of the technology in the world of renewable energy occurred in Australia.
According to RENeWNexus, peer-to-peer-based solar energy trading is technically feasible. And this is after testing 48 households in Fremantle, Western Australia.
In addition to that, the Australian government’s smart cities initiative funded the project. They operate it on Power Ledger’s blockchain technology. Also involved in the project are Curtin University and Murdoch University.
Power Ledger is a software firm that facilitates electricity and environmental commodity trading. And this is with the support of blockchain technology.
In this project, they use Power Ledger’s blockchain platform to enable consumers to trade solar energy and set electricity prices by themselves. Then, it had also set up a virtual power plant that plays a role as a cloud, storing excess solar units.
Aside from that, the project placed a microgrid with a 670kWh battery to service homes within the east village development in Fremantle.
Solar Energy Trading
The trial revealed that solar energy trading made its participants worse off financially. Unfortunately, the local Australian electricity provider charged a subsidized rate. Then, the blockchain-based trading platform displayed some potential benefits.
Now, one of the main benefits accrued from quicker settlements. Consumers patiently wait for 60 days for their electricity bill and any income from feed-in tariffs. And they have made settlements in real-time with the blockchain technology.
After that, another benefit came from tokenized funds released upon meeting pre-specified conditions. And these optimize batteries for the highest value activity without any manual handling needed, diminishing transactional friction, and giving a swift settlement process.
Meanwhile, the Italian Banking Association (ABI) announced its willingness to help in implementing digital currency from the European Central Bank.
Based on an update on the website on June 28, the association had approved guidelines governing its position on digital currency and central bank digital currencies (CBDCs).
The ABI explained that they are ready to join in projects and experiments in digital currency from the European Central Bank. They aim to speed up the implementation of a European-level initiative.
The group said, “Digital money needs to be fully trusted by citizens.”
To this end, the highest standards of regulatory compliance, safety, and supervision must be adhered to.
Then, the ABI also noted that monetary stability and respecting regulations linked to a digital euro are two of its top priorities.
Moreover, the association mentioned that the creation of a European CBDC might attract a bigger number of cross-border P2P transactions, reduce the impact of the interest and exchange rates, and overall lessen the size of the bureaucratic process for payments.
As ABI stated, developing a digital currency in the European Union (EU) might replace the demand for cryptocurrencies.
At the same time, the existence of a European CBDC may diminish the attractiveness of instruments of comparable use. But still, it is issued by private individuals – unidentified and characterized by an intrinsically higher risk profile.
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