Vermont Utility Co To Pilot LO3 Energy’s Blockchain Trading Marketplace For Renewable Energy
The largest utility in Vermont is employing the LO3 Energy blockchain-based platform in its new pilot project on the energy marketplace.
Green Mountain Power (GMP) is embracing blockchain technology in an attempt to bring only renewable energy to its customers in the 5 years to come. The program is called Vermont Green and will be available through GMP’s mobile app on December 3. People in Vermont will be able to sell and buy renewables through a blockchain that will store their transactions.
LO3 Closed High-Profile Partnerships Before
The news on the service offered by GMP and LO3 Energy was first revealed by the Microgrid Knowledge energy blog in a filing with the state’s regulator, on November 18.
Ever since it has won a geothermal energy transfers patent in 2016, the LO3 green energy startup has closed many important partnerships for its peer-to-peer system. Even the giant Shell has invested an undisclosed sum in LO3, back in July.
LO3 Was Picked out of Six Applicants
Vermont’s green energy campaign is going to be conducted with the help of LO3 Energy, after GMP had to choose from six other applicants. GMP recognizes the blockchain’s potential when it comes to transaction immutability and user privacy.
The regulatory filing says the blockchain is allowing GMP’s service to develop together with the decentralized marketplace that’s continuing to increase.
“As an increasing number of distributed assets are deployed across GMP’s service territory, GMP views the ability to utilize distributed consensus associated with blockchain as a potential means to efficiently track this chain of custody going forward.”
GMP Expects Businesses to Buy More Credits Through Its App
The app will allow market players to place bids on renewable energy credits. GMP expects businesses aware of renewable energy’s potential to buy the most credits. Stakeholders think the pilot marketplace poses a problem for the renewable energy sector in Vermont, as people are mostly using solar panels and have electricity at their discretion.
Lawrence Orsini, the CEO and founder at LO3 Energy said:
“This platform pairs the local supply with demand at the grid edge and we are delighted to be working with GMP to bring this market to commercial reality.”
The GMP’s innovation strategist Graham Turk wrote on November 1 that:
“Blockchain is uniquely-suited for tracking chains of custody (especially for non-physical assets like VGAs), creating a more transparent tracking system for buyers, sellers, and regulators. LO3’s platform is designed with scalability in mind and such future expansion may be found practical.”
It remains to be seen if the product will engage many utility users, but looking at LO3 Energy’s success over the last few years, the hopes are high.