Blochchain Technology Used on Electricity in Bangkok.

Blochchain Technology Used on Electricity in Bangkok.

Bangkok residents in a posh neighbourhood try out a renewable energy trading platform which allows them to buy and sell electricity between themselves. This indicates the growing popularity of such a system as solar panels get cheaper. Firms concerned are of the opinion that the pilot project at the centre of Thailand’s capital, is among the world’s largest peer-to-peer renewable energy trading platform which uses Blochchain Technology. This chart is a graphical representation of how the model works.

The system totals a generating capacity of 635 KW that can be traded via Bangkok city’s electricity grid between a mall, school, dental hospital and an apartment complex.

David Martin, the managing director of Power Ledger, an Australian firm that develops technology for the energy industry and is a partner in the project gave insights on the fact that commercial operations will begin next month everything being equal.

The advantage of such a model will enable trading in renewable energy and the community will meet its own energy demands. This leads to lower bills for buyers, better prices for sellers and a smaller carbon footprint for all, he added.”It will encourage more consumers to make the switch to renewable energy, as the cost can be changed by selling excess energy to neighbours,” he told the Thomson Reuters Foundation.

It is worth mentioning that the “World Energy Council predicts that such decentralised energy will grow to about a fourth of the market in 2025 from 5 percent today”.

Helping it along is blockchain, the distributed ledger technology that underpins bitcoin currency, which offers a transparent approach to handle complex transactions between users, producers and traders. Blochchain Technology additionally saves individuals the drudgery of switching from sending power and its reception, Martin said.

Finally, Thailand being Southeast Asia’s leading developer of renewable energy aims to have it account for 30 percent of final energy consumption by 2036.

The energy ministry has therefore encouraged community renewable energy projects to reduce fossil fuel usage and a proposed solution is drafting new rules to enable the trade of energy.

The Bangkok Metropolitan Electricity Authority forecasts “peer-to-peer energy trading to become mainstream for power generation in the long run,” a spokesman told reporters.