The German Ministry for Economic Affairs and Energy is funding a three-year project to investigate use of blockchain in energy trading. The project BEST (Blockchain-based decentralised energy market design and management structures), which began in January 2021, is aimed to investigate how blockchain technology can best be used for trading in a decentralised energy system. The project under the leadership of the non-profit energy research Reiner Lemoine Institute is focussed on developing an electricity market bidding system based on blockchain technology as an open source software.
Several key questions on energy trading are of interest, such as how a blockchain-based trading system needs to be designed to work and what auction mechanisms should be used. Other questions are how the local networks in which electricity is to be traded are defined and what legal energy framework would such an electricity trading system require? “Blockchain is interesting for the energy transition because it allows electricity to be traded directly between generating and consuming modules,” explains Norman Pieniak, BEST project manager at the Reiner Lemoine Institute. “The entire energy system benefits from […]