Spanish Energy Giant Turns to Blockchain Technology for Renewable Energy Tracking
In partnership with a local bank called Kutxabank in the Basque Autonomous Community – which holds a considerable portion of the equity in Iberdrola – the first trial was conducted and concluded to have been very successful.
A major part of the trial was the tracking and monitoring of the delivery of renewable energy originating from three points including two wind farms and one power station to bank offices in the Basque Country and the city of Cordoba in the south.
An open-source and scalable blockchain platform which was purposefully designed to help the energy sector’s regulatory, operational and market needs was used in this trial. This platform, called the Energy Web Foundation, helped Iberdola create an order for the producers of energy and also simplified the process of energy distribution through automation.
How It Helps
Due to the success of this test, Iberdola is now certain that using blockchain will most definitely improve and simplify the process involved in the issuance of a Guarantee of Origin certificate. A Guarantee of Origin certificate is proof to a consumer or stakeholder that energy was produced or generated from a specific source. It is obligatory in all countries within the European Union (EU).
Effects In The Industry
Widespread use of blockchain technology will also reorganize processes and framework so that transparency is significantly increased and operations are more cost-effective because middlemen will be eliminated.
Already, ACCIONA Energia, another major company in the Spanish renewable energy industry, has announced that it will also use blockchain technology to track the production of electricity. ACCIONA Energia generates emission-free energy for at least 6 million homes.
In other countries, blockchain is already being used actively in their various energy sectors. Siemens, for example – which is a German conglomerate with interests in healthcare, infrastructure and also energy – has also founded a partnership with the Energy Web Foundation in a bid to encourage the general use of decentralized solutions, including blockchain technology, in the sector.
In the United States, about $5 million was earmarked and granted to fund university research into many different technology solutions including blockchain.