How Blockchain Could Solve Austria's Energy Crisis
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How Blockchain Could Solve Austria's Energy Crisis
Climate change has become one of the biggest global challenges to humanity. At the same time, dependence on hydrocarbon energy sources such as coal, oil and natural gas is still strong. Supply lines around these energy sources are more vulnerable to geopolitical tensions. Due to the current sanctions against Russia, experts now expect rising electricity prices and a negative impact on the energy market in Europe.
The Austrian government recognizes the urgent need for an energy transition and has set an ambitious goal of becoming climate neutral by 2040. Alternative solutions to fossil energy have been slow to emerge and, for the most part, are not yet efficient enough on a large scale. But there are promising approaches – notably in peer-to-peer (P2P) energy trading in the form of decentralized renewable energy or blockchain technology.
Austria already has pilot projects related to P2P trading in the energy market. At the forefront are blockchain scale-up Riddle & Code and Austria's largest energy provider Wien Energy, which in 2020 formed a joint venture called Riddle & Code Energy Solutions. Wien Energy and Riddle & Code have been working together for a long time.
Back in 2017, the companies launched the first project in the quarter called Peer2Peer, where they tokenized photovoltaic solar systems so consumers could participate in energy production. According to Seifert, the concept of energy sharing is in great demand at this time. Electricity prices have skyrocketed due to Russia's invasion of Ukraine and the coronavirus crisis. Affordable renewable energy, smart information technology and energy sharing can reduce rising energy prices.
Seifert noted an "interesting increase in interest in renewable energy" – in Austria, Europe and around the world. Companies operating in the renewable energy sector are now "coming into focus," Seifert said, because they are benefiting from "large investments in climate policy around the world." This data cannot yet be used for billing, but it helps to encourage correct consumption behaviour.
Thanks to data like this, customers can see how much green energy is on the grid from a community installation and, for example, use this time to turn on a washing machine or charge an electric car. This, in turn, has an indirect effect on the bill as customers pay less if they use more electricity than their own shared forms.