The blockchain technology being used by the companies allows to conduct deals directly with each other in a matter of seconds, which usually needs a central intermediary.
Blockchain technology is a database that exists on a peer-to-peer network which can collate a list of records or transactions. Each one of them is time-stamped and is connected to its previous transaction. The data stored in a blockchain cannot be changed retroactively, without changing all subsequent records.
By using a direct trading method, the two companies have shown that the cost of electricity procurement can be lowered, as there are no additional partners. This reduction in the cost of procuring electricity can bring in direct benefits to energy consumers.
Eon chief digital officer, Matthew Timms said: "The Enerchain initiative is a good example of open, cross-industry collaboration. We all believe in the enormous potential that Blockchain technology has for the new energy world and especially for our customers."
Last year, Eon tested the first decentralised energy wholesale system at its Future Lab. It was based on a peer-to-peer network developed by Ponton, an energy IT company.
In May this year, Eon, Ponton and other European partners created ‘Enerchain’, the blockchain energy trading initiative. Major partners in the initiative include Vattenfall, Total, Engie and EDF.
The aim of this initiative is to develop a decentralised European marketplace for energy trading. The present transaction is claimed to be a significant milestone to achieve this goal.
