Toyota Joins Forces With University Of Tokyo And Trende For Blockchain-Based Electricity Trading
Toyota Joins Forces With University Of Tokyo And Trende To Trial Blockchain-Based Electricity Trading
Toyota, a leading Japanese car manufacturer, has allied with the University of Tokyo and Trende, a Japanese renewable energy retailer, to pilot a blockchain-based electricity trading solution, according to reports on May 23, 2019.
Electricity On The Blockchain
Per sources close to the development, the University of Tokyo, Japan’s leading automobile maker, Toyota Motor Corporation and Japanese online renewable energy company, Trende Inc. has announced plans to trial distributed ledger technology for creating a renewable energy trading system.
Specifically, the blockchain pilot is scheduled to go live on June 17, 2019, and it will test a peer-to-peer electricity system that would enable homes, enterprises and electric cars that are connected to the power grid to trade electricity with blockchain technology.
The project will be focused on Toyota’s Higashifuji Technical Center and its environs.
At a time when distributed ledger technology is now changing the face of industries around the world, from trade finance to fintech down to arts and entertainment, the team has hinted that the pilot test is aimed at formulating a more efficient use of electricity via DLT.
Interestingly, the team has made it clear that as solar panels, secondary batteries and electric vehicles are becoming quite ubiquitous in Japan, it’s looking to harness the power of blockchain technology to make it possible for individuals and businesses to own their own energy.
“As distributed power supplies such as solar panels, secondary batteries, and electric cars become increasingly widespread, Japan’s electricity supply system is in a transitional state as it shifts from its traditional large-scale consolidated system to a distributed system by which individuals and businesses own their own power supply,” said the team.
Reportedly, the main goal of the blockchain pilot is to verify the economic importance of enabling residents to generate power with their own distributed power supply systems, trade energy on a peer-to-peer basis at prices that reflect supply and demand conditions.
That’s not all, the pilot also aims to assess the feasibility of a “two-way, self-autonomous power supply system that supports direct trading with other prosumers.” Prosumers in this context are electricity producers who are also consumers at the same time.
Making It Work
The team has outlined some specific steps that it plans to take to make the project a huge success, including the creation of an electricity exchange accessible to participating households and businesses, the installation of an artificial intelligence (AI) powered energy management system in the houses of all participants.
“Electricity transactions between individuals are carried out using a defined algorithm that matches buy and sell orders that are collected in the electricity exchange from each participating household and business,” explained the team.