China Explores Blockchain Technology For Trading Energy
The Chinese Energy Administration (CEA) will explore blockchain-based electricity trading platforms to facilitate electricity trading between autonomous power generation units and the state and national grid, according to a paper released last Friday.
The immutable feature of blockchain technology can provide transparent and reliable electricity metering and transaction proofing, according to the Institute of Electrical and Electronics Engineers (IEEE).
According to the CEA, the government agency responsible for formulating energy policy under the National Development and Reform Commission (NDRC), the policy will explore the possibility of small and medium-sized power generation and storage facilities that serve local neighborhoods trading power with state and national grids.
In July, Chinese software firm Insigma Hengtian Software said Yunnan province in the southwest of the country awarded it a contract to provide a blockchain-based electricity trading system.
Yunnan is rich in hydropower resources and is dotted with small hydropower plants. Before China’s ban, cryptocurrency miners favored the province for its abundant energy and low costs.
The recent drought and heatwaves have already affected China’s electricity. In the past few weeks, Sichuan has experienced severe crises, with massive industrial and domestic power outages. One of the main reasons is that local reservoirs have dried up and the region’s energy production – hydro power – has been cut in half.