Blockchain Technology Will Transform the Power Industry

Blockchain Technology Will Transform the Power Industry

Indigo’s research was quoted in POWER magazine in January. See more here.

“The New York-based Indigo Advisory Group, which works with utilities and energy companies on market strategies, technology, and innovation services including blockchain, has studied use cases for decentralized generation, grid management, metering, electric vehicle (EV) charging, and the Internet of Things, which includes blockchain applications for the “Connected Home” market. As an example, blockchain technology helps solar power generators (Figure 1) feed excess electricity into the local grid, or sell it to other customers, and receive compensation directly from the customers rather than relying on a third party”

“It can be a disruptive technology for energy,” said David Groarke, managing director of Indigo, in an interview with POWER. “In our work with utilities, the first thing they want to know is, is this landscape stable and are there standards? Utilities, and power companies more broadly, are confused about what solution to go for. The market landscape for blockchain is very technology-driven, [but] utilities should look at the value chain more, and the technology second. It should be more of a business-led discussion, rather than a technology-driven discussion. There’s a real need for utilities to do proof of concept, to experiment a little bit.”

“Indigo has identified dozens of use cases of blockchain technology in the energy industry, maintaining an ever-evolving list in its “energy blockchain use case repository.” Many of these use cases are pilot projects, with a number of efforts underway in Europe. There are also projects in China and Japan; in China, industrial technology developer Wanxiang Group plans a $30 billion investment in a blockchain-backed “smart city” project. Other countries developing blockchain projects around energy include the U.S., Australia, New Zealand, and South Africa.”