Uttar Pradesh is poised to become the inaugural Indian state to introduce blockchain-based solar energy trading. This is after Australian startup, Power Ledger inked a deal with two major government-owned companies for a pilot project that will involve blockchain-based solar energy trading, Cointelegraph reports.
In a press release, the two firms Renewable Energy Development Agency, as well as Uttar Pradesh Power Corporation, have entered into an agreement with Power Ledger to roll on a pilot a blockchain-backed solar power trading to analyze whether such a project is viable in the state. As per the statement, the first batch of the project will end before the end of March 2020.
As per the agreement, during the piloting stage, Power Ledger is expected to connect its blockchain-backed system to smarter meter systems which will enable citizens owning rooftop solar equipment to decide on the prices, monitor the power trading as well as clear out excess solar power dealings through the use of smart contracts.
An essential challenge facing renewable power sources is storage of extra energy due to unpredictability of sources such as the sun or wind that generate extra or less energy than is required. Keeping this in mind, the current project is primed to empower small producers to get clients who can utilize the extra power as well as make the generation of renewable energy more viable.
After the completion of the trial stage, Power Ledger is expected to analyze the results and work closely with the government to come up with regulations which will enhance P2P power trading in the state.
This is not the first project to be undertaken by Power Ledger in India as it previously implemented a P2P power trading in Dwarka area located in Delhi. Just like the trial in UP, the company’s pilot project in Dwarka was premised on offering the residents cheaper, safe renewable power and allow solar equipment owners earn from the extra power they produced.
With a population of more than 1b people, India has recognized the power of blockchain technology in various sectors and just recently, the country ministry in charge of IT said it will soon release a countrywide blockchain framework.