According to a Market Watch research, Blockchain technology empower P2P energy transactions, like Blockchain is being used for trading excess solar energy in the Schwemmiweg district of St. Gallen, who sold 18% of unusd power to the utility network Walenstadt Wasser and Electric Co.
The tech also allows energy companies to impact capital expenditure, security, operating costs, and risk management.
“The blockchain ledger is being used to reduce transaction costs, pinpoint origins of energy, and increase the efficiency of exchanges," said Market Watch.
“In 2018, the global Blockchain Technology in Energy market size was $495 million and it is expected to reach $4.9bn by the end of 2025.”
US-based Global Market Insights, a global market research and strategy consulting firm puts the number at over $3 billion by 2025.
Rationale behind blockchain in Energy
Rising security concerns of grids & networks on account of increasing interconnection and digitalization will drive the blockchain technology in energy market growth, according to Global Market Insights.
“Moreover, increased loads from influx of electric vehicles, and the burgeoning number of smart appliances will complement the industry outlook,” it said.
Saudi Aramco invests in Blockchain-based energy startup
American blockchain startup Data Gumbo Corp. has raised $6 million from major energy companies, including the venture wing of Saudi Arabian Aramco Energy Ventures. The news was published by energy-focused news outlet Worldoil on May 8.
The new investment purportedly brings Data Gumbo’s total funding up to $9.3 million.
“The investors purportedly expect Data Gumbo’s blockchain-as-a-service platform to improve oil and gas supply chains by eliminating disputes and enabling automated payments, as well decreasing reconciliation times between supply chain counterparts,” reports Worldoil.
Daniel Carter, Senior Investment Director at Saudi Aramco Energy Ventures, said that “distributed ledger technologies have the potential to bring win-win efficiencies between industrial companies and their suppliers.”
Recently, the Russian prime minister welcomed an initiative to use blockchain in agreements over gas supplies by the country’s state-owned gas giant Gazprom. The blockchain-based platform reportedly intends to allow data sharing between all the participants of a certain contract, as well as to improve the security of data.
In March, seven global oil and gas firms partnered to form the Oil & Gas Blockchain Consortium in an effort to conduct proofs of concept in order to explore and apply the benefits of blockchain.