LO3 and ConsenSys partner to use Ethereum blockchain technology for energy payments for the first time

Two Brooklyn residents completed a direct energy buy and sell transaction today using the Ethereum blockchain.

The two neighbors were able to complete the deal thanks to green energy startup LO3, which is working to bring blockchain technology to the energy industry what it has done to banking.

LO3 co-founder Lawrence Orsini said the deal was intended to show how anyone can use blockchain to facilitate peer-to-peer transactions.

Orsini told COinDesk:

“All of the projects we are currently working on focus on the emerging distributed economy and peer-to-peer concepts. These projects are all focused on distributing and decentralizing assets into community life and the new economy of the future.”

New partnership

The project, a collaboration between LO3 and decentralized application startup ConsenSys, is called TransActive Grid and allows Brooklyn resident Eric Frumin to sell excess renewable energy generated by his solar panels to Bob Sauchelli, former program manager for EnergyStar.

Every unit of energy created by Frumin is calculated and recorded on the Ethereum blockchain. Using programmable smart contracts, this energy can be bought and sold on the open market.

The energy generated by the solar panels on Frumin's roof is not only enough to meet his own consumption needs, but if he sells this surplus energy back to the power company, he can only sell it at the power company's wholesale price.

Sauchelli:

"However, if Frumin sells energy to me, I will buy his energy at the price that the power company sells it to me, and I will not pay more. But Frumin will get the entire premium, not just the wholesale price."

There is another point that is key to Sauchelli's willingness to participate. Although it is important for Sauchelli to buy green energy, he said that the convenience of buying Frumin energy should be at least the same as the convenience of buying energy from traditional energy companies or other green energy solutions.

Joseph Lubin, co-founder of TransActive Grid and ConsenSys, elaborated further.

“The global electricity industry is decentralizing, thanks to cheap photovoltaic power, rising energy consumption and regulators’ awareness of the inefficiencies and vulnerabilities of energy delivery. But currently, people still cannot upload their own electrons to the grid to buy and sell them.”

Joseph Lubin

Ready to expand

Currently, some environmentally conscious energy consumers can buy so-called renewable energy certificates for a premium that goes to support green energy production elsewhere in the world.

But through TransActive Grid and another LO3 project, Brooklyn Microgrid, the energy (and money) will stay local.

Orsini said:

“We’ve got five customers in Brooklyn that are producing renewable electrons and then putting them on the grid through copper wires that are connected to their houses.

Original: http://www.coindesk.com
By Michael del Castillo
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/ethereum-used-first-paid-energy-trade)