Blockchain + Internet of Things + Energy: The most complete applications are here!

Bitcoin, blockchain technology and the Internet of Things (IoT) are disrupting all industries, especially the energy sector, including the solar energy trading market. Coincidentally, the price of solar energy continues to fall, creating new business opportunities while protecting the industry's environmental footprint.

Rapid development of energy market

Multiple factors have contributed to the rapid growth of the renewable energy industry, including generation costs, new investments, and U.S. regulatory policies.

General Electric (GE) says the cost of producing solar energy has fallen 60% since 2010.

In addition, Fortune Magazine said:

Investors in the wind and solar industries have benefited greatly from falling technology costs, making them more competitive with fossil fuels.

Apple, Amazon and Google are all investing heavily in the renewable energy industry.

Renewable Energy Certificates

Renewable Energy Certificates (RECs) are certificates that prove that each megawatt-hour (MWh) of electricity was generated from renewable energy and used in power lines or grids. RECs are tradable products.

Therefore, in addition to state and federal financial subsidies, solar or clean energy system owners can also make money by buying and selling RECs in the spot market.

SolarCoin is another way to subsidize solar energy producers. The SolarCoin Foundation said:

SolarCoin (SLR coin) is a complementary currency that uses blockchain technology to stimulate the development of the global solar electricity production industry over the next 40 years.

As long as you submit proof of solar power generation, you can earn SLR coins. Each megawatt-hour (MWh) corresponds to 1 SLR coin.

Solar energy generation and distribution driven by blockchain and IoT

The countless connected smart devices in the Internet of Things combined with blockchain technology can create diverse practical applications such as power production, decentralized power distribution and solar energy trading.

For example, IDEO CoLab uses blockchain technology and the Internet of Things to build a "solar panel connected to the internet."

IDEO CoLab, which has partnered with Nasdaq and IoT startup Filament, recently “developed a proof-of-concept solar panel device that automatically creates RECs while generating electricity.”

In the world of the Internet of Things, Filament uses wireless sensor components to enable each smart device to communicate and interact independently. At the same time, these smart devices can also exchange value, including Bitcoin, data, and network interfaces.

Additionally, transactions between devices are managed directly by smart contracts and are therefore executed automatically.

Solar energy trading based on blockchain

With Bitcoin and blockchain technology, P2P solar trading has finally become a reality. EcoCoin created a blockchain platform designed for P2P solar and other renewable asset trading. The EcoCoin team also won the 2016 International Energy Hackathon.

Brendon Gails, a member of the EcoCoin team, said:

We have created a blockchain platform for energy market participants. They can buy and sell energy on it, all transactions and products are transparent, and participants can make corresponding decisions based on this data.

Microgrids are the future of energy generation and distribution. Microgrid users are already starting to benefit from blockchain technology and smart contracts.

LO3 Energy (distributed energy solution provider) and ConsenSys (blockchain technology solution provider) have established a community energy market, TransActive Grid, using blockchain technology and smart contracts to enable secure and automatic P2P energy transactions among community members:

Home energy producers can sell excess energy to their neighbors. Communities that keep their energy supply local can reduce waste and increase utilization.

Pay your energy bill with Bitcoin

The use of Bitcoin in public utilities is becoming increasingly popular. Currently, public utility companies in several countries already support Bitcoin for electricity bill payments.

German energy giant Enercity now accepts Bitcoin as a form of bill payment.

Similarly, Japanese energy supplier E-net Systems has partnered with exchange Coincheck to enable users to pay their electricity bills with Bitcoin.

In Australia, users of payments company Living Room of Satoshi can pay all manner of bills with Bitcoin and other cryptocurrencies.

Bitcoin, blockchain technology, and the Internet of Things, along with other technologies associated with the Fourth Industrial Revolution, will continue to spur innovation and create solutions that were never before possible. These new solutions will make the generation, consumption, and trading of solar and other renewable energy more efficient, less expensive, and more environmentally friendly.

To learn more about blockchain and energy applications, please pay attention to the "Blockchain and Energy Special Topic".