Applications and Use Cases

Rethinking the Microgrid: Blockchain For The Secure Exchange of Energy and Data

October 02, 2018
By Special Guest
Shrey Fadia, Special Correspondent -

Today, two companies announced an alliance to focus on a new way to secure data generated by connected assets on the alternative energy grid.

Windmill Enterprise, developer of the Cognida platform (a blockchain for enterprise open source initiative) announced a strategic alliance with Alternative Resource Group, LLC (AR3), a clean energy development company.

The project includes development and deployment of an AR3 enterprise-class, blockchain-based microgrid power management and energy trading exchange platform utilizing the Cognida platform and network.

Working with the Energy Web Foundation (EWF), global non-profit organization focused on accelerating blockchain technology across the energy sector, the two companies will contribute to initiatives designed to “reduce transaction costs in the energy sector, enable active participation of a larger number of market participants (consumers and devices) and, as a consequence, accelerate the transition towards a cleaner, more resilient, and more cost effective systems,” according to the EWF’s website.

EWF is also launching a new energy-focused blockchain platform (“Energy Web Platform”) that provides the functionalities needed to implement and scale use cases.

The EWF counts among its strong community of members Duke Energy, Blockchain Capital, PG&E, Chubu Electric Power, Sempra Energy, Ericsson and dozens more supporting a market standard that “ensures interoperability, reduces costs and complexity, aligns currently dispersed blockchain initiatives, and facilitates technology deployment through easy-to-implement applications.”

EWF’s ecosystem of users, developers and infrastructure providers will work collaboratively with Windmill and ARG to develop industry standards and establish market protocols for future blockchain-based energy grid management systems and energy exchange trading systems.

“With the incorporation of distributed generation into the energy grid, there are increased complexities as more stakeholders become involved in coordination of energy production and delivery,” said Michael Hathaway, CEO of Windmill Enterprise. “The Cognida platform's use of blockchain technology as a distributed database provides tools for grid operators to enhance security and improve real-time exchange of data between stakeholders and their energy customers.”

“The evolution of the energy grid to a more dynamic, cleaner system is not a luxury, it is a necessity,” said Michael Lumbley, Partner and Development Director for ARG. “Technologies have evolved to provide better functionality, transparency and security. By bringing all of these aspects under a universal operating system, we can improve access to power and energy security to emerging markets.”

The AR3 platform will also allow end users to achieve even greater value through use of the Cognida Network’s COG token for transactions. In conjunction with the opportunity for ARG end users to be partial project owners through the AR3 token, energy consumers will now have the ability to be partial owner of their own energy supply and receive the additional savings of purchasing with the internal COG token, thereby lowering their cost of power significantly while supporting the development and deployment of clean energy assets around the globe.

The strategic alliance will focus on two major shared points of collaboration:

  • Jointly implement, test and deploy the underlying application protocols and interfaces
  • Cooperatively develop industry standards for the virtual purchase and sale of energy and energy-related products that make practical use of blockchain technology

This complements the EWF’s mission to build “a secure, transparent and expedient blockchain energy management and energy exchange platform that will allow end users and grid operators to buy, sell, trade or hedge energy assets anywhere in the global market with crypto or fiat currencies.”

Their AR3 platform will allow market participants to securely monetize their own energy production or procure energy from preferred resources with a secure identity management and verification system.

This will allow users to procure cleaner, lower-cost energy or monetize their production or clean energy credits. With a global market revenue of $1.4 trillion annually, this project will create an enormous market for energy producers and consumers.

Edited by Ken Briodagh



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