The government’s Energy Entrepreneurs Fund has awarded funding to energy tech company Electron to show that blockchain can transform the market for balancing the electricity grid.
The grant will enable the company to scale and integrate a blockchain trading platform that allows electricity consumers to be paid to adjust their energy consumption to balance supply and demand in a system.
Electron’s application was supported by National Grid and Siemens (on market design and technical implementation, respectively) who will continue to engage with Electron for the duration of the project.
Unlike traditional trading platforms that match buyers and sellers on a one-to-one basis, Electron’s platform uses blockchain technology to allow multiple parties to co-ordinate and share the value of a single consumer’s action. This will maximise the overall value and liquidity of the flexibility market, at the same time as enabling individual purchasers of flexibility to share costs. The company refers to this concept as “collaborative trading”.
Electron chief executive Paul Ellis, said “Blockchain is not just a technology. It is a revolutionary new way of transacting business without a central intermediary. Removing this intermediary enables new, better models of co-operation on an efficient, demonstrably fair platform.”