Energy Market Yesterday and Tomorrow
The European Union's renewable energy strategy, the REPowerEU Plan, and efforts to reach the net-zero emissions goal significantly impact the energy market. The plan aims to accelerate the transition to a sustainable, secure, and cost-effective energy system, introducing a series of fundamental goals and initiatives to achieve this target. This transformation creates opportunities for innovation and investment in renewable energy technologies, energy storage, and energy efficiency, while also bringing changes in energy consumption habits and the transportation sector.
The European Commission estimates that by 2030, the 28 member countries will produce approximately 2,800 TWh of renewable electricity annually (compared to 580 TWh in 2020). This situation creates a large market niche for modern, tailored solutions that support the transition.
Blockchain-based, fully automated, and community-focused solutions are well-positioned to gain momentum in market transformation over the coming years.
Why Blockchain in the Energy Market?
Blockchain technology has significant potential to address some fundamental issues in the energy market:
Immutability and Traceability
Transparent tracking of energy sources is essential, especially for the guarantee of origin (GO). Using a blockchain-based platform, it is possible to create a secure and immutable record of the energy source, helping to prevent fraudulent claims regarding renewable energy certificates.
Decentralization
The energy market is currently centralized, with a few large companies controlling energy production and distribution. This situation leads to inefficiencies, high transaction costs, and a lack of transparency. Blockchain can enable the creation of decentralized energy trading platforms, where individuals and businesses can sell excess energy generated by renewable sources directly to other consumers without intermediaries.
Smart Contracts
Smart contracts are self-executing agreements where the terms between buyer and seller are directly written into lines of code. In the energy market, smart contracts can be used to automate energy trading and reduce transaction costs.
Increased Transparency
Blockchain technology can enhance transparency in the energy market by providing an immutable and secure record of energy transactions. This helps reduce the risk of fraud, increase accountability, and build trust in the energy market.
Energy Efficiency
Blockchain can improve energy efficiency by facilitating the use of excess energy generated by renewable systems. This can help reduce waste and promote the use of renewable energy sources.
Governance (DAO)
Blockchain is well-suited to creating a community governance model to maintain the reliability and decentralization of the energy system in the context of energy communities. The community would be responsible for deciding the project's direction, setting participation rules, and overseeing the verification and distribution of GO certificates.
What Are Energy Cooperatives?
Energy cooperatives are a type of energy community that allows members to collectively own and manage energy sources such as solar panels, wind turbines, or community-scale battery storage systems. By sharing the costs and benefits of these resources, members can make investing in renewable energy more affordable.
Energy cooperatives can take many forms, such as community-owned solar gardens, cooperative wind farms, or neighborhood-based energy efficiency programs. The goal of energy cooperatives is to provide their members with access to clean, affordable, and reliable energy while also promoting local economic development and community empowerment.
How Does Blockchain Solve Energy Market Issues?
Blockchain, with its features like decentralization, smart contracts, traceability, and energy efficiency, helps reduce costs, improve efficiency, and create a sustainable energy system in the energy market.
Website: https://c4e.io/
