The largest engineering corporation in Europe Siemens AG has recently announced an energy collaboration with fintech startup LO3 Energy to create blockchain microgrids. The blockchain protocol aims to enable energy trades facilitated by a distributed ledger platform.
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Siemens Pairs up With LO3 Energy to Facilitate Brooklyn Energy Solutions on Blockchain
Siemens and New York startup LO3 Energy have formed a partnership to develop a new type of microgrid energy-based system. The German-based Siemens has introduced its next47 unit to bolster energy solutions based on emerging technologies. LO3 will be supported by Siemens Digital Grid and next47 to create a blockchain-based microgrid service in Brooklyn, New York.
“The constant evolution at the grid edge requires advanced control, automation and data analytics technologies enabling secure, stable and reliable integration of decentralized energy systems as well as supporting the establishment of new business models. said Ralf Christian, CEO of Siemens’ Energy Management Division.
We’re convinced that our microgrid control and automation solutions, in combination with the blockchain technology of our partner LO3 Energy, will provide additional value for our customers whether on the utilities side or on the prosumer side.
With LO3’s ‘TransActive Grid’ Siemens Digital Grid Will Enable Peer-to-Peer Energy Consumption
The Brooklyn microgrid project started as a pilot for LO3 but has expanded with help from Siemens Digital Grid. The “TransActive Grid” platform LO3 says will be the first implementation of a Siemens microgrid tethered to peer-to-peer trading. The startup claims the technology will facilitate distributed ledger-based local energy trades between consumers in New York’s Gowanus neighborhoods, Boerum Hill, and Park Slope.
“With our microgrid solution in Brooklyn, we’ll demonstrate just the beginning of what blockchain can do in the transactive energy world,” explains Lawrence Orsini, founder of LO3 Energy.
Blockchain technology is meant to enhance the storing and validation of direct transactions of energy producers and customers. LO3 detailed that transactions will be immutable based on a distributed system without third party arbitration. “Thanks to a cryptographic process and distributed storage, the possibility of manipulation is virtually eliminated. In addition, authentication processes guarantee the confidentiality of user data,” LO3 Energy stated.
Blockchain-Based Microgrid Project Is in Line With New York State’s Energy Initiatives
The Brooklyn energy project will be in line with the New York State energy policy “Reforming the Energy Vision” (REV). Siemens and LO3 Energy said in the future, the blockchain-based microgrid and its “Smart City” projects aim to enhance other areas around the globe as well. By adding more efficiency to energy trading, LO3 claims the platform will manage stored energy solutions as well as customer flexibility choices.
LO3 Energy and Siemens solution will also “simplify the temporary standalone operation of heterogeneous microgrids,” says the startup. As a result, if a natural disaster occurred the platform can allocate for optimization within the grid framework.
LO3’s blockchain energy project has been in the works since April as two Brooklyn neighbors transacted between each other using the TransActive Grid. Consensys and Lo3 Energy enabled the New York residents to sell off excess solar energy in an immutable and efficient fashion. Projects like these could enhance the way energy consumption is dealt with today. Siemens and LO3 believe blockchain innovations can transform this market for the better.
What do you think about LO3 Energy and Siemens teaming up to create blockchain-based energy solutions? Let us know in the comments below.
Images courtesy of Shutterstock, LO3 Energy and Siemens websites.
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