A software firm is bidding to build local energy markets using distributed ledger technology that it claims is orders of magnitude faster than blockchain.
Aiming to create markets that combine households and businesses with distributed generation, such as solar and batteries, the firm claims it can ‘tokenise every kilowatt hour of energy produced’. That enables real time tracking, optimisation and trading.
The platform is already deployed as part of a proof of concept peer-to-peer residential microgrid in Corby. The project, match funded by Innovate UK, is demonstrating autonomous peer-to-peer renewable energy trading across 47 zero carbon homes.
CEO Anthony Morgan said its technology “works at any scale, from micro-grids to national grids.
“This means homes are able to buy and sell energy autonomously to get the best price, businesses are able to unlock revenue from on-site renewable power, and network operators are able to optimise capacity on the grid, making energy more reliable, affordable and sustainable for everyone.”
The company is now touting its capabilities to commercial estates, local authorities, DNOs, energy aggregators and distributed generators.
Sluggish transaction times have led some to question whether flexibility markets based on blockchain can work effectively in real time. However, Morgan thinks his platform can sidestep that barrier.
While similar to blockchain, the software can handle more than 10,000 transactions per second, claims Power Transition. Bitcoin, for example, can only guarantee around 4.6 transactions per second, while Visa can handle around 1,700. Power Transition says it also uses very little energy, 0.001kWh per transaction.
The technology is set to underpin a local energy market.*
in London. The Bank Energi market, centred on London’s South Bank area, will involve both commercial and public sector buildings and assets, including the NHS. Part government funded, it is linked to other flexibility initiatives, such as Flex London, which is aiming to unlock up to a gigawatt of flexibility within the capital.
Announcing an MoU with Power Transition, Bank Energi CEO, Rajvant Nijjhar, said: “The transition to net-zero enables us to think differently about how we produce, trade and use energy. We see a future where local renewables, buildings and electric vehicles are integrated using smart technology to create local energy marketplaces, optimising clean energy, improving air quality and cutting costs. Power Transition’s platform provides the speed, security and scalability we need to make this a reality.”
Clarification: This article originally stated that Power Transition has signed an MoU with Bank Energi to deploy its technology on the government-funded South Bank local energy market. This is inaccurate and came as news to the project consortium. It transpires that Rajvant Nijjhar, project lead on the original South Bank Bank Energi project, has also formed a separate limited company called Bank Energi and plans to build similar local energy projects in other regions. It is with Nijjhar’s limited company that Power Transition has signed the MoU. This may be of interest to potential investors.