Rather than purchasing electricity from the grid, why not buy back surplus solar energy produced by a neighbor’s solar panels? This is the concept of collective self-consumption.
Solar energy systems normally don’t produce energy at the same time when a typical homeowner can consume it. For that case, there are two tactics to increase self-consumption: storing energy or shifting energy consumption. In order to increase the self-consumption of solar energy, homeowners can couple their solar systems with batteries and smart devices.
Solar-plus-battery systems enable homeowners to shift self-produced energy to be available during times of peak energy consumption in order to further reduce their electricity bills and boost energy independence. Excess energy can then be sold to the community at a reasonable price for both parties, which is ‘collective self-consumption’.
Pylon Network is pioneering the first open renewable energy exchange community that facilitates collective self-consumption by tapping into energy communities and energy cooperatives.
The network is currently transitioning to the commercialization stage, which allows participants to store, track, buy, and sell renewable solar energy instantly via an immutable and transparent blockchain.
Essentially, all of these features are unlocked by the operation of Pylon as a neutral energy data hub, which allows the communication and cooperation of many energy actors under a secure, private and efficient exchange of energy data.
Developments by Pylon in Collective Self-Consumption
In October 2019, Pylon Network announced its participation in their first collective self-consumption scheme in Spain.
Collective self-consumption is arguably the hottest topic in the Spanish and the EU energy market at the moment. The concept raised major interest in the recently concluded ‘International Conference of Energy Communities’, which took place in Lisbon, Portugal.
During the conference, Pylon Network was invited to share progress made in the Spanish market and to demonstrate their work in relation to energy communities.
Portugal and other EU countries recently introduced legislation for energy communities and collective self-consumption in June 2019
Focus on collective self-consumption has been attracting a high level of interest by stakeholders in the EU who are considering entering this newly-opened area.
One of the critical catalysts for the improvement of collective self-consumption is the ability to dynamically adjust the consumption coefficient of the consumers that are associated with the installation. This is referred to as dynamic coefficients.
The pylon network carried out simulations based on real hourly data so as to implement dynamic coefficients. So far, the results have been promising, with dynamic coefficients improving the share of the electricity consumed by the energy community.
The simulations have also shown improvements in terms the empowerment and energy independence of local communities and the engagement of consumers in the energy market.
Peer-to-Peer Energy Trading
By leveraging blockchain tech, Pylon has been working to actualize peer-to-peer (P2P) trading and the creation of local energy systems and markets.
Progress has been made in this regard, but legislation imposes a series of technical standards and regulations for those who want to become an electricity producer/supplier.
Pylon Network is currently advocating and cooperating with energy stakeholders of the Spanish market to evolve collective self-consumption in a way that benefits the market operation, consumers, and the acceleration of the energy transition.
Developers are also working to promote the installation of decentralized green production systems and maximize their use and to better balance the network in terms of managing complex producer-consumer injections into the blockchain.
For more information, visit the Pylon Network website.
The Daily Chain
*Disclaimer – Pylon Network are our Media Partners and therefore this content is sponsored by them. The fees paid by this project are used to pay for The Daily Chain salaries, dev work, hosting services, travel expenses etc.. that are required to make this company a success and continue to provide the community with great content on a daily basis.