With the ongoing increase in ecological awareness, the power market is hard-pressed to offer environment-friendly energy at consumer-friendly prices. At the same time, energy providers need to keep their businesses profitable. Some have found that the best way to realize an overall energy optimization is the use of solar energy. Not only is solar energy eco-friendly, it also enjoys a high level of social acceptance.
However, the use of PV systems is still widely restricted to single-family houses and individual apartments. As soon as more than one party uses the same PV energy source, the accounting of (solar) power consumption becomes erroneous and unfair.
This is why guh has realized the project Key2Energy in collaboration with Fronius International, Grid Singularity, IIBW and the Viennese Municipal Department 20 – Energy Planning. This innovative Proof of Concept was presented at EventHorizon 2017 – Global Summit for Blockchain Technology in the Energy Sector.
The idea is simple: every energy source and consumer is measured and accounted in real-time.
The PV operator defines static or dynamic prices for their in-house customers, which is much more attractive than feeding the energy grid. At the same time, the tenants benefit from fair pricing.
How is this idea realized? Since smart meters do not have real-time capabilities, they are updated and made even smarter with IoT tech from guh. The building is enabled to synchronize local power demand and supply. State-of-the-art blockchain technology handles and stores energy transactions, while smart contracts provide insight into market logic.
Accounting, advertising, and invoicing of the locally generated energy thus all take place between the PV system operator and a group of local energy consumers. With local energy production being subject to local energy consumption, the distribution key is market-based. This is of vital importance not only to the plant operator and the consumers, but also to network operators, power companies, and balance group representatives. To provide a perfect overview to all parties involved, time series represent the amount of local direct use (internal market) as well as the amount of residual current use derived from the public network (external market) per consumer, and the amount of superfluous energy from the generating plant supplied to the public network (external market). In addition, a blockchain application can be used for secure data processing, storage, visualization, and clear as well as flexible attribution of the power consumed.
Key2Energy represents a clean and profitable solution for all parties involved. Apartment building owners benefit from their building’s increased attractiveness thanks to the provision of green, solar energy at favourable prices. At the same time, a solar trading agent automatically maximizes the investor’s revenue by placing the solar energy on the local market at the best price possible. Meanwhile, apartment tenants become active participants in their energy consumption, with individual trading agents reflecting each tenant’s preferences regarding energy sources and price caps. Transmission system operators benefit from efficiency improvements thanks to smart balancing of supply and demand in micro balancing groups representing local markets. As for distribution system operators, the local consumption of locally generated energy allows for active grid operation and targeted investments in smart grids. Last but not least, access to affordable and reliable energy from environmentally sustainable sources is a key target of energy policy. By establishing a micro market on the level of individual residential buildings, energy production from locally available, renewable sources meets the local demand.
Key2Energy is a sophisticated PoC, and it even forms the basis for current business case developments. Click here to learn more about Key2Energy.
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