Blockchain tech has found several use cases providing communication, cybersecurity, and transaction support in several industries. As utilities continue to understand its value, blockchain technology offers clear benefits to the electricity industry as well.
Based in Spain, Klenergy-Tech developed its Pylon Network for the electricity industry to provide near real-time data transmission, communication, and consumer engagement outreach for utilities, energy service companies, and other energy stakeholders.
The Pylon Network has been demonstrated since 2018 at the GoiEner Energy Co-op, bringing generators, consumers, and regulators on the same platform sharing data in near real-time, and is now used with energy communities in Valencia, Spain, to transmit data of complex energy flows from generation, battery storage, imported electricity, and consumption while ensuring data privacy via a neutral data hub.
Klenergy-Tech has also used the Pylon Network to extract energy usage data for energy service companies (ESCOs) to support energy efficiency and renewable energy objectives for their customers.
How Does Pylon Utilize the Blockchain?
Pylon essentially creates a shared energy database where any consumer can access their own energy data in a simple and easy way – with the security and privacy (by-design) offered by blockchain tech.
Additionally, the network offers the ability for consumers to grant permission to their data to any other third-party, who in turn, can use these data to offer (back) services with added value.
All the services are offered through an open energy marketplace that communicates with the neutral data-hub to extract/record data from/to the blockchain, according to the specified data access permissions.
The marketplace creates a network for any participant to exchange energy services with each other while offering fully transparent and secure operations without any barriers to participate.
What Problem is Pylon Solving?
First, there is always an overall issue with data collection as the availability of data is usually owned by a few companies, making it tremendously centralized.
Additionally, access to this data is severely limited, which creates market barriers that invite monopolies and higher prices instead of competitive rates to benefit the consumer.
If companies want to share data or when consumers want to retrieve data, this is often a difficult process, as the data is often inaccurate or absent. Data issues result in lacking services to the consumer that mostly benefits the company issuing the data/energy instead of prioritizing the consumer.
How is Pylon Solving This Problem?
The Pylon Network uses a neutral energy data hub, which allows for simple, energy-efficient, and transparent data sharing between energy models.
The network establishes a communication platform for markets to share, transmit, and engage in energy-based services, which can increase overall integrity, save on costs, and provide customer based efficiency.
What Benefits Does This Bring to the Energy Sector?
Having a shared and transparent infrastructure for sharing energy data among energy stakeholders is the only practical way to guarantee a smooth and inexpensive operation of an electrical grid with distributed energy resources (DER).
Without the capacity to synchronize among energy asset owners, retailers, system operators, market facilitators, ESCOs, etc. the complexity of the grid operation will usually become inefficient and expensive.
With the creation of a neutral shared database, Pylon is able to provide energy communities with a decentralized tracking and certifying of renewable energy as well as data security and privacy on the blockchain.
Furthermore, the Pylon blockchain in this use case facilitates energy transactions to buy power, fund energy projects, or monetize renewable energy credits.
The need for cooperation amongst stakeholders in the energy value chain has become more pressing than ever due to the increased number of distributed energy resources (DER) and the digitalization of the grid.
To ensure this cooperation, Pylon Network leverages the power of blockchain to create an open, neutral, shared energy database for boosting the exchange of digital services among all stakeholders.
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