The blockchain technology is method of storing and validating data that allows for direct transactions between energy producers and consumers.
With support from Siemens Digital Grid and next47, LO3 Energy will develop a solution for a blockchain-based microgrid which will be initially implemented in the New York region of Brooklyn.
next47 is a unit established by Siemens as part of an ecosystem for partnerships with startups to help advance decentralized energy system market.
LO3 Energy founder Lawrence Orsini said: "With our microgrid solution in Brooklyn, we'll demonstrate just the beginning of what blockchain can do in the transactive energy world."
The collaboration will see integration of Siemens’ microgrid control solution with the LO3 Energy’s peer-to-peer trading platform from known as TransActive Grid.
Siemens said that the integrated solution would enable blockchain-based local energy trading between producers and consumers in Brooklyn's Boerum Hill, Park Slope, and Gowanus neighborhoods.
The integrated solution is also expected to simplify the temporary standalone operation of heterogeneous microgrids while optimizing the use of existing resources within the grid infrastructure.
Siemens Digital Grid Business Unit CEO Thomas Zimmermann said: "Just as our partner LO3 Energy we are envisioning tremendous opportunities for the application of the blockchain technology, especially in microgrids with distributed and decentralized energy systems.
“Its big benefit is, that it permits transparent, efficient trading between multiple participating systems and various stakeholders while taking grid-specific requirements into account.”
Image: The jointly developed microgrids will enable local energy trading based on blockchain technology . Photo: courtesy of adamr/FreeDigitalPhotos.net.
