Digitalization and Blockchain Applications in Renewable Energy Sector
The bioeconomy and generating energy from renewable sources aim at reducing reliance on fossil fuels, preventing climate change, reducing insecurity, and efficiently using resources. Recent digital solutions including blockchain technology have provided new opportunities to boost renewable energy production through improving data management and transparency, eliminating unnecessary intermediaries, balancing supply-demand mechanisms, and improving technological efficiency.
The energy sector is undergoing rapid transformation to accommodate the growing amount of integrated renewable energy generation and therefore is on the verge of passing into a complex digital era. A transition to a more sustainable energy system and contributing to the circular economy necessitates extremely high investment costs and establishing infrastructures. Intelligent and real-time control mechanisms are therefore needed, which is progressively challenging since the energy sector is becoming more distributed, heterogeneous, and multi-agent.
Integration of the Internet of Things (IoT), Artificial Intelligence (AI), and Blockchain technology pave the way for a new generation of energy. The applications of IoT in renewable energy generation include sensor devices that are facilitating the process of production, transmission and distribution of energy. These sensors assist energy producers to monitor and manage the operation of the utility equipment remotely in real-time. This leads to lowered operational costs and reduces reliance on the already constrained fossil fuels. Analytics and data processing solutions such as AI and machine learning enable power suppliers to detect trends and patterns related to energy generation and consumption. This will help energy suppliers to rationalize the distribution of energy and therefore reduce energy imbalance.
In addition, blockchain technology has the potential to revolutionise the renewable energy business in a variety of ways from verifying the source of clean energy to making power grids more accessible through transparent data-sharing in real-time and enabling secure transactions between parties. Blockchain is an immutable decentralised platform that enables the process of recording transactions and tracking assets (both tangible and intangible assets) in a shared network. Blockchain technology is a distributed ledger for creating trusted data on the network connected through peer-to-peer nodes. Hence, blockchain is ideal for securing and sharing that information because it provides real-time, shared and completely transparent information deposited on
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The blogpost has been reviewed by Novia's editorial board and accepted for publication on 5.10.2022.
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