Blockchain platform developer, Energy Web Foundation (EWF), recently released a white paper. Indeed, the white paper details the approach of implementing blockchain technology within the energy sector. In addition, the paper analyzes how blockchain can help the United States to digitalize, decarbonize, and democratize the energy sector. Certainly, those three areas formed the fulcrums of the white paper.
Importantly, the Energy Web Foundation white paper explains how blockchain can help reduce community solar projects’ soft costs. With the aid of smart contracts, a community can own an asset, share the profits, and establish governance. With it, the process of asset ownership is trustworthy, automatic, and seamless. The paper noted that the blockchain can also help on the revenue side. Actually, the paper pointed out that geography constraints affect community solar projects. But the blockchain can ameliorate the situation by enabling on-chain sharing of the community solar project. In the end, it will open a new and diverse source of revenue.
How Energy Web Foundation can Aid in Grid Decentralization
Basically, customers are increasingly settling for distributed energy resources (DERs). One can technically categorize these devices as centralized thermal power generators. Nonetheless, customers rarely use them to their full potential. Also, the process of feeding different devices into the national grid becomes difficult given the peculiarities and market interests of each individual manufacturer. However, a blockchain can enable grid operators to overcome these setbacks. To achieve this, the grid is restructured from the ground up. Describing the process further, the paper noted that a blockchain can help to evolve a secure and decentralized platform that anyone can connect to.
Energy Web Foundation and Tracking Renewable Energy Certificates
In the United States, Europe, and Australia, renewable energy certificates exist. Albeit with noble intentions, the certificates remain highly costly and manual. As a result, they make the market opaque, inaccessible to small participants, and expensive. In addition, these analog and manual markets cannot support any high-level functionality. These functionalities are carbon-impact selective purchasing, consumption-linked purchasing, renewable generator aggregation, and more. To solve the problem, the paper likened buying renewable energy credits to buying an airline ticket. Along those lines, it argued that Energy Web Foundation will empower buyers in their search for what they want, and enable sellers to join forces to get the buyer to their destination. Additionally, the paper noted that blockchain can create such a system for the renewable energy sector. Indeed, the white paper was an eye-opener on how the blockchain can transform the energy sector.
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