ABB has been collaborating with Italian utility Evolvere, using the blockchain technology previously developed with their partner Prosume, to help delivering transparent and secure peer-to-peer energy transactions.
Using the capability of ABB to deliver digital solutions through ABB Ability and ABB’s inverter portfolio, including UNO-DM-PLUS solar inverters and REACT 2 inverters with storage, the pilot has opened-up a new wave of possibilities for energy markets to explore new and transformative models toward smart grid environments.
Blockchain, a public distributed ledger, is used for storing, verifying and maintaining peer-to-peer transactions. It also has huge potential to disrupt the energy sector, offering a viable transaction alternative to traditional models.
It decentralizes the way transactions are made and managed by adopting a secured and trustworthy peer-to-peer approach, which reduces complexity and costs for customers (utilities, aggregators and the energy community overall). It also delivers high efficiency for consumers and providers, enabling fast execution and automatic payment for maintenance and other services.
This latest pilot between ABB and Evolvere further supports the claims that blockchain can be harnessed within energy markets and used within utilities and aggregators, to enable new business models.
It demonstrates how blockchain-ready inverters with built-in digital capabilities can potentially allow utilities, aggregators and energy cooperatives to cut CAPEX and OPEX project costs. This is achieved with the ABB Ability platform enabling new digital solutions, like the generation of smart contracts directly into the inverter. Such smart contracts offer greater transparency and security for transactions and present new possibilities for utilities to evolve their businesses.
Following the pilot, ABB will take the research one step further and investigate how it can ensure all its inverters in the same class are blockchain ready.
Ralph Rio, ARC Advisory Group, commented, “Sharing excess energy from residential solar systems among neighbors, communities and the wider grid is complex and dynamic. Blockchain and smart contracts provide a means to execute the exchanges transparently and quickly while keeping the grid balanced.”