Fujitsu Laboratories Ltd. and Fujitsu Limited recently reported that they implemented blockchain technology for developing a trading system that deals with excess and dearth of energy among electricity consumers. The target consumer group here includes various retail stores and factories, these business houses need more energy as compared to other places.
Fig. 1: Image Showing Electricity Exchange Among Consumers in Demand Response System Using Blockchain Technology
Demand Response (DR) is a plan that includes electric utilities and cooperation from electricity consumers for taking in the amount of electricity used for periods expecting peak demand. The biggest issue with these is that success rate of DR controls are often pretty low where consumers fail to save required amount of energy.
Fujitsu resolves this issue by allowing consumers to exchange energy among themselves. All users who have more than required energy (either through in-house generation or power savings) can now share that energy with others who need it. An advanced version of Blockchain was then applied and complete system was used for a simulation using real time data of electricity consumption. It resultantly improved DR success rate by 40%.
Better DR control success rates are now leading to more and more consumer participation in DR schemes. But the biggest benefit extracted from this system is expansion of renewable energy and consistent power supply to all parts. Fujitsu plans to keep working on this system and finally create a completely carbon-free society for all.
What Led To This Development?
Demand response has been in limelight since initiatives for renewable energies have been up. DR is working to bring down electricity consumption especially during peak hours that expect acute power shortage. DR allows aggregators to work as middlemen who manage each consumer’s power savings. When they meet the required level of power saving, they get compensated, they can either keep this compensation with them or distribute it among consumers who contributed for this purpose. It is an important step towards creation of a carbon-free society, we all need to work towards better success rate of DR and increase the number of participants in it.
Filed Under: News