The National Energy Administration (NEA) will explore blockchain-based power trading platforms to facilitate electricity trading between self-contained power generation units and the state and national grids, according to a policy document released last Friday.
see related article: The Bitcoin-energy connection intensifies
- Blockchain technology’s immutable characteristic can provide transparent and reliable electricity metering and proof of transactions, according to IEEE or the Institute of Electrical and Electronics Engineers.
- According to the NEA, a state agency responsible for formulating energy policy under the National Development and Reform Commission (NDRC), the policy will explore the possibility for small and medium-sized power generation and storage facilities that service local neighborhoods to trade energy with state and national grids.
- Chinese software firm Insigma Hengtian Software said in July that the Yunnan province in the southwest of the country awarded it a contract to provide a blockchain-based electricity trading system.
- Yunnan is rich in hydropower resources and is dotted with small hydropower plants. Before China’s ban, cryptocurrency miners favored the province for the abundance of energy and cheap costs.
- The recent drought and heat has already taken a toll on China’s electricity supply. In the past few weeks, Sichuan province has experienced severe power crunches, with massive industrial and residential power cuts. One of the main reasons is the drought has drained local reservoirs and reduced the region’s power pillar, hydropower, by over a half.
see related article: Here’s why Australia can’t use its empty deserts to mine Bitcoin