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.
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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.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
