Blockchain Enables New Power Markets

Traditional generating stations that produce baseload power measured in hundreds of megawatts are either closing or struggling, unable to compete with inexpensive power produced by solar, wind, or natural gas-burning plants. To handle these multitude of distributed, small-bore sources, a new smart grid is developing, where small buyers and sellers of electricity may find a marketplace. But for that to break into the mainstream, a new system linking disparate generators, buyers, and sellers with fast and secure transactions still needs development. Many industry experts suggest that this new system could well be based on blockchain, a digital technology commonly associated with cryptocurrencies such as Bitcoin. This article takes a closer look at a few pilot projects moving in various market segments.