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Germany

Germany

Statkraft and Esforin team-up for blockchain trading

GERMANY: Statkraft has sold a single MWh of electricity to a demand-side management player, using blockchain technology -- completely bypassing intraday wholesale trading platforms.

Intraday trading at the required speed is only possible on wholesale electricity exchanges such as operated by EPEX Spot or Nordpool (pic: Vattenfall)
Intraday trading at the required speed is only possible on wholesale electricity exchanges such as operated by EPEX Spot or Nordpool (pic: Vattenfall)

In partnership with energy optimisation and service provider Esforin, the sale was achieved on 24 January 2018 in a pilot "peer-to-peer" blockchain-technology project named "Enerchain".

The project demonstrates the possibilities for blockchain use in the volatile short-term electricity market under real market conditions, said the companies.

"We see that within the next four to five years, using blockchain in an electricity market with a rising share of renewable energies will make possible numerous, fast transactions at low cost," said Torsten Amelung, managing director of Statkraft in Germany.

Eventually, blockchain will allow large consumers with flexible production processes to react to intraday price signals resulting from fluctuating generation from renewable energy sources.

This will contribute to holding the electricity transmission network stable and to optimising consumer-side costs, the companies said.

Matching generation and consumption in the short-term reduces network bottlenecks without having to call up control energy or curtail renewable output.

Currently, intraday trade at the required speed is only possible on wholesale electricity exchanges such as operated by EPEX Spot or Nordpool.

The automated peer-to-peer communication made possible by blockchain can reduce costs along the whole trading business chain of activities including broker and trade clearing costs, regulatory reporting costs and reducing back-office processes, the companies explained.

Esforin already trades with fully automated processes in the continuous intraday electricity market, claiming to be one of the most experienced developers of trading algorithms customised for individual customers.

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