“We are seeing a paradigm shift from a centralized internet country to one that is characterized by non-intervention and democracy. There is a lot of convergence in how the energy sector is changing to become more decentralized and distributed in nature,” said Sabine Brink, Shell’s blockchain and Web3 lead.
There is a wide range of opportunities to use Web3 and blockchain technology to support the urgent energy transition. For example, Shell and a number of other global firms have launched Avelia, a book solution that claims to help provide sustainable jet fuel. Technology companies like Toucan, Moss.Earth, and JustCarbon create carbon credits, giving consumers an easy way to reduce carbon emissions. Peer-to-peer energy trading is becoming a reality thanks to businesses like Powerledger, Grid+, and LO3 Energy.
Paul Brody, EY’s global blockchain leader, emphasizes the revolutionary nature of this infrastructure technology: “In a blockchain-based ecosystem, you can have a fluid, digital connection, where you can choose from twelve different vendors, and you can test them. they all depend on digital. “
Decarbonization needs to be promoted
Tackling climate change has one need above all else: the decarbonization of energy systems. This requires more electrification of the economy and distribution of the energy system.
Given the nature of renewable energy, especially solar and wind power, the electricity generated is not always readily available (without storage), and is often geographically removed from where the electricity is needed. Moreover, with the arrival of prosumers—consumers who generate energy that can be fed back into the grid—existing energy systems require a serious overhaul.
“We have many players entering the energy market, and a diverse mix of low carbon energy products. This requires global coordination of energy systems on a large scale to ensure we reach net zero across the board. Furthermore, transparency, auditability, and accountability will be key. ” explains Brink. “Blockchain as a distributed network technology makes a lot of sense to support this.”
This change in the energy system will rapidly increase the number of transactions, including micro-transactions, that will occur every day between many players and energy assets. These should be recorded and managed in ways that ensure data transparency, reliability, and verifiability. It is important that transaction processes and regulations evolve to meet this demand.
The role of blockchain technology
Blockchain technology, a digital and decentralized ledger that stores multiple copies of transactions, makes data manipulation nearly impossible. Although it was developed for cryptocurrency, which is often strongly associated with digital currency, blockchain lends itself to many uses. Its main advantage – incorruptibility – generates a valuable asset in the market: trust.