Applications Tech

Siemens joins Energy Web Foundation to develop blockchain in energy sector

November 25, 2018

Siemens joins Energy Web Foundation to develop blockchain in energy sector

Siemens joins Energy Web Foundation to develop blockchain in energy sector

Global tech giant Siemens’ Energy Management and Power Generation Services division announced last week they are joining the Energy Web Foundation (EWF), an open-source platform supporting blockchain-based projects developments, particularly in the energy sector.

According to the press release shared by Siemens on November 21st, with this move the company will be increasing efficiency of commercial use of blockchain in the energy sector. As an EWF member, Siemens will be exploring blockchain technology-based applications.

Currently, EWF is the leading alliance for blockchain development in the energy sector, with many corporations, technological companies, and strategic investors among its members.

As described by Siemens, transactive energy applications will be a major force in the transformation of the energy sector “towards decentralised, decarbonised and digitised energy systems, where distributed energy resources (DERs) such as solar, wind, stationary storage systems, electric vehicles, heat pumps and others as well as flexible loads are playing an ever increasing role.”

At the same time, according to the company, new forms of plant and project financing are needed.

“Blockchain technology enables transactions in a decentralised network to be validated efficiently and securely. This enables new business models of energy and flexibility trading between consumers, prosumers, producers and network operators, taking into account user preferences and network restrictions,” the technical explanation reads.

The company concludes that blockchain-based applications and business models have the potential to help increase the overall efficiency of future energy networks and enable new forms of asset and project financing.

Siemens is not new to blockchain technology implementation. Currently the company is using the new technology to help its customers develop new forms of energy. It also offers solutions and services for optimized control of energy generation and consumption.

At the same time, Siemens together with New York-based LO3 Energy startup is working in the areas of innovative microgrids and peer-to-peer energy trading platforms. As a result of this collaboration, the first project is currently being implemented in Brooklyn.

In addition, it was announced this August, that London-based Standard Chartered multinational banking company and Siemens are jointly carrying out an industry-first client pilot “to create an end-to-end blockchain-based smart guarantees proposition in trade finance.”