Electron has been awarded £637,000 in government funding to scale its prototype blockchain trading platform for demand-side response.
The company’s application for the funding was supported by National Grid and Siemens and the two firms will feed-in to the project.
That National Grid backs the technology is interesting, given it could potentially displace the role of the central intermediary.
Electron says its platform uses blockchain technology to allow multiple parties to co-ordinate and share the value of a single consumer’s action. If adopted at scale, the firm believes this will maximise the overall value and liquidity of the flexibility market, while enabling individual purchasers of flexibility to share costs. The company refers to this concept as “collaborative trading”.
“Blockchain is not just a technology. It is a revolutionary new way of transacting business without a central intermediary,” said Electron CEO, Paul Ellis.
“Removing this intermediary enables new, better models of co-operation on an efficient, demonstrably fair platform.”