Blockchain, an evolving technology associated with cryptocurrency, is a new addition to the energy sector, varying the way power is distributed, with new models for peer-to-peer transactions.
The power industry has gone through modifications over the past few years, utilizing the latest technologies, new sources of power generation, and data storage platforms. Blockchain is an emerging technology that can bring revolution in the power industry. Blockchain initially conceived for cryptocurrency has become a powerful source to store data across the network.
The idea is to authorize individuals or enterprises to buy or sell energy within a network. Blockchain presents the best solution on account of transparency, audit ability, and automated record generation. It will make the process efficient and cost-effective.
Blockchain technologies like smart contracts, smart meters are very prominent these days. They perceive the automated billing concept for both consumers and energy distributors. In another case, utility companies can get benefits using micro payments or pre-paid meters.
Sales and Marketing
Sales and marketing are dependent on consumer behaviour, trends and preferences. In the energy sector, marketing practices changes referring to energy profile, preferences, environment, and climate. Blockchain with the integration of artificial intelligence can spot on consumer energy consumption patterns that enable the provision of customized and valued energy products. Alongside marketing, these patterns can also be helpful to overcome the energy crisis.
Blockchain-based distributed trading platforms can split various market operations like wholesale market and commodity transactions. Green certificates are very prominent in the trading markets these days as proof of energy production through renewable resources.
Blockchain solutions enhance the dominance of decentralized energy systems or micro-grids. The localized energy trading enlightens the meter activities like self-production or self-consumption. This system will affect revenue generation and tax collection in the power sector. Blockchain technologies provide an efficient communication medium for smart devices, data transfer, and storage. Intelligence devices include smart meters, sensors, networking tools, and energy control systems. Besides secure data handling, smart applications also benefit from data standardization.
Oil and Gas Industry
Blockchain technologies in oil and gas trading reduce system maintenance costs. Moreover, blockchain solutions reduce costs integrated with labor, data management, and network communication. Referring to recent researches, the implementation of blockchain in the gas and oil industry can reduce overall costs by 30%.
Various companies in the world are trying to integrate blockchain technologies in wholesale electricity markets, focusing to tie up end users with the grid. It will enable consumers to purchase energy instantly from energy providers instead of retailers.
Ethereum enables users to purchase electricity from the grid that can reduce bills up to 40%. It results in a stable electricity trading market with lesser electricity costs.
Blockchain represents itself as an emerging technology to stimulate improvements in the power sector through decentralized nature and smart contracts. Most interestingly, complex systems like the petroleum or electricity industry have a massive opportunity to enjoy the benefits like security, transparency, stability, and reliability; blockchain provides. Integration of blockchain technology development and solutions in the power sector can lower costs on the consumer and provider sides.