Spain turns to blockchain for renewable energy

19 Jan, 2019
by Joeri Cant
Spain turns to blockchain for renewable energy

Iberdrola, a Spanish public electrical utility company based in Bilbao, Basque Country, announced that they will be turning to blockchain technology to guarantee that the energy supplied to the consumer is 100% renewable.

According to Iberdrola, the first experiment to guarantee the renewable origin of the energy supplies was done with the financial entity Kutxabank, which was able to track, in real time, the origin of the energy supplied by Iberdrola from the generation asset to the point of consumption.  

'Technology for a better world!', the tweet reads. 'We use blockchain to ensure that the energy that arrives at your home is renewable'.

The renewable energy was generated in wind farms in Biscay province, Guadalajara province and in the Orense province in the Galicia region. The clean energy from these assets was then consumed at the headquarters of Kutxabank in the Basque Country and Cajasur in Córdoba. 

Blockchain technology will help the company to allocate which assets will supply energy to a specific point of consumption, and can even be used to establish a hierarchy of priorities when it comes to sources of origin.

'With this initiative, renewable energy certification processes are accelerated and automated, certification is given a greater degree of traceability, and the transaction is made more transparent and secure, as it is permanently registered on the platform so that both parties can audit the results', Iberdrola said.

Read more: Power Ledger partners with U.S electricity wholesaler to offer P2P energy trading

Pilot projects for community energy and peer-to-peer have already been successfully run by the Brooklyn Microgrid in New York , PowerLedger in Australia, Conjoule in Germany and many more. However, in Europe these experiments are limited to pilots under regulatory exemptions, so peer-to-peer remains far from being rolled out universally.

But soon enough, blockchain’s ability to allow peer-to-peer energy transactions will significantly disrupt the energy sector, and companies like Iberdrola seem to be aware of this.

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