by Guest Contributor July 11th, 2018 by Guest Contributor Editor’s note: The article below is a nice supplement to our new blockchain × cleantech report, Blockchain: An Innovation Enabler For Clean Technology. Originally published on Enerquire via Energy post Network operators should get involved soon in blockchain technology.
If they miss the digital revolution, it will threaten their business model in the longer term and they could end up becoming pure network asset owners without operational responsibilities, writes Marius Buchmann of Jacobs University. Courtesy of Buchmann’s blog Enerquire.
In the eurelectric report there is a strong focus on the fact that the monopolistic characteristics of the electricity networks are a kind of showstopper for the application of blockchain technology in the energy sector. To a certain extent the authors of the report have an important point: If we expect blockchain technology to completely eliminate all intermediates in the electricity sector, then the authors are correct to conclude that this is very unlikely to happen, since network ownership will always be performed by a single entity that is regulated to secure that the monopolistic power is not misused by the owner of the networks.
Against the background that blockchain technology pushes disintermediation in many sectors, network operators might feel challenged by this technology (as they probably feel by many digital innovations for that matter). Still, we should keep in mind that blockchain technology does not change the fact that we will need the electricity networks to facilitate the physical exchange of electricity between the different network users.
Providing these physical assets to the energy markets will therefore remain an important task, irrespectively of whether digital solutions like blockchain or other technologies will transform the deployment of physical assets. As a result, asset ownership, and here we agree with the conclusion of the authors of the eurelectric report, will remain a regulated task that will be performed by single entities, i.e. Read more from cleantechnica.com…
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