EU DLT Expert Reveals How Blockchain Can Expand Energy Markets

Amid the buzz generated by the Web3 movement, a less catchy concept is Industry 4.0, which details the revolutionary move of the next industrial disruption. Industry 4.0 cannot perform optimally in the absence of energy. The energy industry needs further expansion to enhance efficiency.

However, blockchain technology is at the heart of Web3, Industry 4.0, and the energy sector. Blockchain technology can allow the energy sector to grow further. According to the blockchain Observatory report titled “Blockchain Application in the Energy Sector,” ledger technology will be the difference-maker.

The report’s authors believe that ledger technology (DLT) can become a key component of the energy sector. It has the potential to make or mar the energy sector, depending on its application. 

Meanwhile, industry insiders are not surprised by the recent revelation considering the vision of the Digital Green Shift movement.

Blockchain Technology is an Enabler for Energy Sector Expansion

The recently published EUBlockchain Observatory report highlights the direction of the blockchain industry and that blockchain technology can complement the energy sector. Case studies involving energy stakeholders like Elia Group, Volkswagen, and others are used to frame the direction of upcoming innovations.

In an interview with Cointelegraph, Ioannis Vlachos, a member of the EU Blockchain Observatory, revealed the role of ledger technologies in developing non-electric energy sources using blockchain.

Vlachos noted that the non-adoption of blockchain energy solutions is due to how the energy sector is structured. Energy stakeholders are yet to see the potential of blockchain solutions due to the nature of the energy market.

The energy market is highly centralized, and blockchain is decentralized, making adopting it a bit complex. Moreover, the market adopts a direct approach with the flexibility to allow small players to access energy for supply.

Direct market participation is why DERs will not soon achieve access to all markets and assets. However, the solution lies with blockchain technology considering its decentralized identifiers (DIDs) and verifiable credentials (VCs). 

These tools are the solution to allowing access for all to the energy market. This has the potential to expand the energy sector and allows small-scale distributed energy resources (DERs) to participate in it.

Non-electric Energy Can Benefit From Blockchain Technology

The EU Blockchain Observatory Member disclosed that industries could adopt blockchain technology in non-electric energy sources like biofuel. 

The technology integrates multiple actors and allows users to exchange data between assets and systems.

These can be made possible using DIDS and VCs, which come with blockchain technology applicable to the energy sector. Non-electric energy sources can integrate these tools to achieve optimum efficiency in their supply.

Reports indicate that blockchain technology in the energy sector will be further explored and improved as adoption increases. The Shell company adopts Avelia and collaborates with Energy Web’s blockchain energy solution provider. Avelia is a blockchain-based digital solutions provider for energy clients spanning several industries.

Despite the regulated energy sector, many projects are shifting their attention to incorporating blockchain technology.