China Exploring Blockchain For Energy Trading Between Self-Contained Power Generation Units

According to a policy paper released last Friday, the China Energy Administration (CEA) will investigate blockchain-based power trading platforms to facilitate electricity trade between self-contained power-producing units and state and national grids.

According to IEEE, or the Institute of Electrical and Electronics Engineers, the immutability of blockchain technology can enable transparent and trustworthy electricity metering and transaction proof.

According to the CEA, a state agency under the National Development and Reform Commission (NDRC) responsible for developing energy policy, the policy will investigate the possibility of small and medium-sized power generation and storage facilities that serve local neighborhoods trading energy with state and national grids.

Insigma Hengtian Software, a Chinese software startup, announced in July that the Yunnan province in the country’s southwest had given them a contract to build a blockchain-based electricity trading system.

Yunnan has a lot of hydroelectric resources and a lot of small hydropower units. Prior to China’s ban, Bitcoin miners preferred the province due to its plenty of energy and low expenses.

The severe drought and heat have already had an impact on China’s power supply. Sichuan province has been experiencing significant power outages in recent weeks, with massive industrial and household power outages. The drought has emptied local reservoirs, reducing the region’s power pillar, hydropower, by more than half.

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