Loading...

Blockchain adoption needs significant policy shift


14 January 2019 | Tanmay Sardana

Blockchain adoption needs significant policy shift

The state of Uttar Pradesh is gearing up to apply blockchain technology to the energy sector. In October 2018, UPERC, the state regulator, organized a conference on creation of an eco-system using blockchain technology to explore decentralized energy trading, track RE production and facilitate payment gateways for charging EVs. More recently, the regulator has proposed to allow peer-to-peer power transactions using blockchain technology in its rooftop solar PV regulation, 2019.

Blockchain, a nascent technology most often associated with cryptocurrency, is seen as a new frontier in the energy space. It is a distributed database technology that securely maintains a growing ledger of data transactions and other information among network participants. It is expected to change the way power is traded with new business models for peer-to-peer transactions between distributed power generators and storage facilities on one hand, and EVs and power consumers on the other hand. It can potentially allow power generators to set up dynamic smart contracts in response to ongoing changes in demand-supply and other market factors, creating a dynamic pricing system. The ability to record every asset, transaction and energy flow in a way that is tamper proof, verifiable and accessible to all participants could be transformational.

Internationally, Europe is the most active region for blockchain pilots, with utilities working on EV charging, connected home and wholesale trading and settlement. One of the early successful case studies for use of blockchain technology is the Brooklyn micro-grid project in New York that creates localized energy marketplaces for transacting energy across existing grid infrastructure. In October 2018, WePower, a European blockchain-based RE trading platform in collaboration with the local transmission operator shifted all their energy trading data onto blockchain.

In the Indian context, we believe that the regulatory system needs to change very fundamentally to exploit the potential of blockchain technology. According to the Electricity Act, 2003, no person/ entity is allowed to undertake trading or distribution of power without a license. Also, the Reserve Bank of India (RBI) has barred Indian banks from serving virtual currencies and cryptocurrency exchanges which are considered as the basic transaction entity in blockchain. It is hard to see how blockchain can be adopted in the energy sector unless the regulations are relaxed. For that, we need a consensus amongst policy makers, regulators and other stakeholders on wider reform of the power sector and viable mechanisms for blockchain adoption.


Recent reports

India Solar Compass | Q1 2024

India Solar Compass | Q1 2024

This report provides a detailed update of all key sector developments and trends in the quarter – capacity addition, leading players, tenders and policy announcements, equipment prices, financial deals and other market developments. It also provides market outlook for the next two quarters.

India PV Module Intelligence Brief | Q1 2024

India PV Module Intelligence Brief | Q1 2024

This report encapsulates quarterly trends in module demand and supply, import and domestic production volumes, supplier market share, break-up by technology and rating, global market scenario, pricing across the value chain, key policy developments and market outlook.

India Corporate Renewable Brief | Q1 2024

India Corporate Renewable Brief | Q1 2024

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

Corporate renewable market -alternative procurement options

Corporate renewable market -alternative procurement options

Corporate consumers seeking to increase share of renewable power in their consumption mix have the option of using multiple short-term procurement routes like green power exchange, renewable energy certificates (RECs), I-RECs and green tariffs.

India Solar Rooftop Map | December 2023

India Solar Rooftop Map | December 2023

India Solar Rooftop Map is an info-graphic report providing a snapshot of rooftop solar market in India – capacity addition across states and consumer segments, market share of leading players and other key trends. Total rooftop solar capacity is estimated to have reached 14,484 MW by end of 2023. Total new installations in 2023 are estimated at 2,856 MW, up only 8% over previous year.

India Solar Map | December 2023

India Solar Map | December 2023

India Solar Map 2023 is an info-graphic report covering growth of utility scale solar sector – national and state-wise commissioned and pipeline capacity, leading market players and portfolio details of top 16 project developers. Capacity addition in 2023 fell 51% YOY to 5,924 MW taking total utility scale solar capacity to 59,840 MW. Total project pipeline stands at a record 74,161 MW.

To top