Many people who have increasingly despaired at the adverse effects of changing climate have probably mused: Why can’t we go completely green? Why are fossil fuels so hard to quit? The answers, as usual, are legion: Renewable energy is too expensive, too unreliable, too undeveloped and fossil fuels lack a suitable substitute. All of these reasons contain a modicum of truth. But our biggest challenge remains lack of political will because lowering our reliance on fossil fuels requires dedicated investments that provide uncertain, long-term benefits.
Indeed, scientists have continued making remarkable progress in ironing out one of the biggest kinks of clean energy: The intermittent and unpredictable nature of renewable energy.
Now, researchers have come up with yet another solution to make renewable energy more dependable: Renewable Energy trading platforms that leverage AI and blockchain technology.
Dutch scientists have successfully developed Distro, a solar and battery storage-based microgrid trading platform underpinned by blockchain distributed ledger technology and AI.
Distro is both good for the goose and the gander: The platform has demonstrated double-digit reductions in energy costs for customers as well as comparable revenue improvement for renewable energy producers.
High-frequency energy trading
The Distro Platform, developed by S&P Global Platts and Blocklab Rotterdam to support energy trading at very high frequencies, uses blockchain smart contracts to ensure all transactions are validated and immutable.
Distro is a high-frequency microgrid energy trading platform that leverages AI and blockchain by optimizing supply and ensuring it meets consumer demand in a highly granular manner. This is reflected in rapid changes in local energy prices. In other words, Distro incentivizes lower consumption during periods of low energy generation by lowering prices during high generation periods.
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During the trial, Distro enabled an 11% reduction of energy costs for end-users while also boosting revenues by 14% for energy producers as well as increasing battery storage returns on investment by 20%.
