In our last post on this topic, we discussed the importance of building a new smart and flexible energy infrastructure. With people buying their own energy assets to use how they wish, the system needs to adapt to ensure operators can maximize revenue opportunities and incentivize green energy consumption. So, how exactly do we build an infrastructure fit for the 21st century and beyond? The use of blockchain and effective security solutions will be vital.
Due to the uberization of energy (people buying their own batteries and renewable installations for their own purpose and providing access if money can be made) there’s more demand for shared ledger systems. In a shared property, individual tenants might wish to be charged separately for their energy consumption. To create the level of flexibility required, blockchain technology needs to become a central part of the system. Transactions should not be based on pre-defined processes; rather, they should be calculated dynamically and based on evolving energy consumption. Blockchain can also support micro-transactions between individuals, a necessary component of the new Internet of Energy. For those who are unfamiliar with blockchain technology, you can find out more about how it works by checking our webpage here.
Another requirement is that the new system is secure. Operators, who currently calculate revenues based on closed meters in millions of households, need to know that the data they receive from the millions of customers using connected assets is accurate and reliable. Blockchain technology does come with the risk of original data being compromised, so we need a basic infrastructure to optimize the system physically and commercially. Strong authentication is needed on devices and networks to prevent fraud in the system. A trusted transaction environment must replace the current process-led landscape.
To find out more about why we need a more flexible energy infrastructure and how we should implement the trusted transaction environment that is so crucial, feel free to come listen to my speech at European Utility Week in Barcelona, taking place on November 16th at 11.40. Alternatively, if you’re at the ESMIG pavilion in Barcelona, make sure you pop by our booth – 3H81, Hall 3 – for further information from our team.
Over the last two posts, we’ve established why a more flexible energy infrastructure is needed to support the Internet of Energy. The IoT is uberizing the world of energy, meaning there are opportunities for a greener world and greater revenue for energy providers. The infrastructure needs to be in place to support micro-transactions and flexibility needs. Blockchain and trusted transactions must form a central part of the new system.
Let us know your thoughts by tweeting to us at @Gemalto.