Experts Believe Gulf Cooperation Council (GCC) Stands to Greatly Benefit from Blockchain for Renewable Energy
Blockchain technology is one of the most beneficial opportunities to stem from cryptocurrency, and economies around the world are trying to see ways it could fit. The Gulf Corporation Council (GCC) is the home to many renewable energy markets and includes all of the Arab States in the Persian Gulf. Experts from Booz Allen Hamilton believe that they could see substantial benefits from the addition of blockchain technology, according to Al Bawaba in a March 4th report.
The goal of the GCC is to ultimately install 80 GW of renewable energy capacity in the reason, covering six member-states, within the next year. This new capacity will account for over half of the current conventional capacity. With their hope of reaching 50% of the world’s energy through the use of renewable sources in the next thirty years, the use of an isolated blockchain could be the best way to handle the challenges ahead.
These challenges would include changes in the technicalities, governance, and other difficulties in the sector, which is only amplified by the $5 billion in revenue that it made in the first three quarters of this fiscal year.
Booz Allen Hamilton’s vice president for the Middle East and North Africa, Dr. Adham Sleiman, said that the energy sector is set up already in a way that could easily handle blockchain technology. He based this theory on the fact that the transactional nature of the sector presently relies on a central authority for electricity and fares.
Considering how distributed energy resources (DER) are rising in popularity, the structure is already moving in a way that decentralization would be more beneficial to serve the energy sector. Sleiman added that the current utilities should not just focus on energy delivery, but they should expand to the implementation of blockchain applications, which would greater track the energy, add smart contracts, and make the peer-to-peer trade of energy into a reality.
Based on the report from Al Bawaba, Sleiman also said that the transactive energy concept would be helpful to the innovation of blockchain technology, considering the next ten years of progress.
Senior associate Rafael Mateo of the Dubai office for the firm said that pilots for blockchain and smart contracts have already been deployed by both the Dubai Electricity and Water Authority (Dewa) and the Dubai Roads and Transport Authority (RTA). The addition of tracking tools, according to Mateo, are also necessary before automation and decentralization take place.
Iberdrola, an energy firm in Spain, revealed last month that they were using blockchain to track sustainable energy sources, using the Energy Web Foundation’s (EWF’s) open-source blockchain platform. Three months earlier, the EWF had already made progress on decentralizing the energy sector with the addition of two Siemens units.
Blockchain technology is also making progress in South Korea, while KEPCO has been using it for the development of an environmentally-friendly microgrid. SP Group in Singapore decided to start trading solar energy on the blockchain in fall 2018.