Apart from the integration of blockchain technology in food supply chain management, financial services, and data management, blockchain technology has found a lot of use cases in the energy sector. This is why energy firms that offer services like Duke Energy, Electron, and many providers of similar services can benefit significantly from applying blockchain technology. A blockchain resource factory has several benefits over a regular energy factory. Apart from the significant cost saving benefits of the technology, it also saves time and improves trust. The most recent interest in blockchain technology was marked by OVO’s acquisition of a stake in Electron.
OVO Acquires Stake In Electron
OVO is a major energy firm in the United Kingdom. The company recently announced its investment in blockchain technology through Kaluza, a technology division at Electron. The news was announced on March 12. Keep in mind that Kaluza is a division of Electron that offers hardware and software energy products. A while ago, the company invested in Electron to facilitate the deployment of Electron’s distributed trading systems.
The funds will be used to build energy systems and platforms for its distributed flexibility marketplace. Part of the announcement states: “The development of Electron’s shared asset register will be crucial to supporting the growth of Kaluza and deliver on its mission to securely connect all devices to an intelligent zero-carbon grid.”
The recent acquisition is the first one since Mitsubishi acquired a 20% stake in Electron. OVO’s acquisition is also noteworthy because the company is the seventh largest supplier of energy in the United Kingdom.
Blockchain Supply Chain Management In The Energy Sector
On a global scale, there has been increased adoption of blockchain integration in the supply chain management systems of energy companies. At the beginning of March, a Thai refining firm, Bangchak Corporation Public Co, started testing an energy trading system and microgrid that is based on blockchain technology. According to the reports at the time, the platform will fulfill the electricity needs of a typical BCP fuel station. Apart from this, it will also use the distributed ledger to generate, distribute and store energy for tenants in neighboring shopping malls.
In February, Kyocera a Japan-based solar power provider entered a partnership with LO3 Energy. The goal of this partnership is to develop virtual power plants that are based on blockchain technology. The test that was conducted at the time allowed energy companies to check the feasibility of virtual power plants that are environmentally friendly and do not use fossil fuel or cause carbon emission. The system is based on a distributed, peer-to-peer consensus network.
A research that was conducted by Infoholic Research LLP, predicted that the global market for blockchain utilities is going to experience a 60% growth by the year 2024. While the market had a capitalization of $210.4 million in 2018, it is predicted to have a valuation of $3.4 billion by 2024 if growth continues at this pace. The compound yearly growth according to the researchers will be 59.4% between 2018 and 2024.
What do you think about the integration of blockchain technology in supply chain management and other aspects of the energy sector? Comment below.