- The Public Utilities Commission of Nevada is considering using the DLT for its energy distribution.
- The current system has been deemed unsustainable and is being discontinued.
- Blockchain offers a “simpler, easier and more accessible” alternative.
One of the biggest issues associated with mining cryptocurrency is the significant amount of energy it takes up. This has led to people even stealing electricity to mine it.
It seems, however, that blockchain, the technology upon which cryptocurrency is based, can be used to better manage energy. This is at least what a new docket opened by The Public Utilities Commission of Nevada in September states.
The docket suggests that “portfolio energy credits” (PECs) can be tracked using blockchain while the current system can be replaced with more renewable energy sources.
Should this be successful The Public Utilities Commission of Nevada hopes to save the time, money and energy associated with energy distribution.
What can be Done
The current energy distribution system in Nevada is called NVTREC and has been deemed to be unsustainable for future use. “NV Energy has stopped maintaining the software,” according to Commissioner Ann Pongracz.
The immediate alternative is called the Western Renewable Energy Generation Information System. However, the system has a limitation in that its threshold for energy is 1MW “therefore is not well suited to providing the value of PECs to the smaller generators,”
Fortunately, blockchain technology provides a much-needed third option. It would offer a PEC tracking and trading system that does not have any limitations with smaller generators.
The eagerness of the commission to explore the use of blockchain because it “could be a better way to track portfolio energy credits for the purpose of meeting the renewable portfolio standard.”
Blockchain certainly has to potential to solve this problem as it will allow energy usage to be tracked with greater efficiency and will also reduce the associated costs.
Nevada is not the only place that seems to be embracing blockchain for their energy needs.
the German energy agency Deutsche Energie-Agentur (DENA) has partnered with GE Power Digital to explore possible applications for blockchain in the energy sector with the results of the study expected to be released in 2019.
Blockchain tech in the energy sector has been described as a “simpler, easier and more accessible” solution. Whether this solution will be widely adopted or not, is unknown for now.