Estonia to pilot blockchain on smart grid
January 16, 2018
A pilot project aims to test large-scale tokenisation of energy data on the blockchain in Estonia. The project will be a real-world test using anonymised data to simulate and demonstrate what the future of energy trading using blockchain technology might look in Europe.
The project is being run by Elering, an independent electricity and gas system operator in Estonia, and Gibraltar-based WePower, a blockchain based green energy trading platform that aims to drive global green energy adoption and promote sustainable living.
This project is the first of its kind in Europe and will pave the way for a future practical test that will connect European green energy producers to the Estonian smart grid.
To achieve this, WePower will integrate its blockchain and smart contract powered green energy trading platform into Elering’s Estfeed data exchange platform. This will form a proof-of-concept system for Estonia, demonstrating nation-state scale tokenisation of energy consumption and production data on the blockchain.
“Elering’s motivation in this project as a transmission system operator is to enable energy innovation by removing market barriers,” said Taavi Veskimägi, CEO of Elering. “For that purpose we have built the Estfeed data exchange platform, which enables people to share their energy meter data with new service providers. WePower is a great example of the potential of innovation in the energy sector that can be unleashed by transparent data access.”
This system should enable concrete steps towards global blockchain powered energy trading. This will make energy trading accessible to prosumers of all sizes and configurations. WePower will be leveraging Estonia's existing smart grid infrastructure, particularly the 100% smart meter coverage with hourly reading and a central data hub. These are suitable technical conditions to test the true scalability for tokenised asset trading technology and provide a stronger bridge between green energy producers and traditional grid operators.
“We are thrilled to announce our partnership with Elering,” said Nick Martyniuk, co-founder and CEO of WePower, “as it is the first step in our goals of making the smart grid greener. Estonia is the perfect country to start with, as it already has an existing advanced smart grid infrastructure that we can integrate out technology into. This partnership is an excellent use-case to show the viability of blockchain technology in the green energy space, and marks a huge achievement towards creating a global blockchain powered energy trading network.”