The energy sector is a multifaceted industry with different operations. Some companies focus on extracting fossil fuels, while others engage in power generation. The sector is heavily regulated in different countries, including the United Arab Emirates (UAE). However, the sector faces different challenges.
Blockchain in the Energy Sector
Blockchain technology stands as a perfect solution to address many problems in the energy sector in countries. The UAE is not left out. Blockchain technology eliminatesthe need for a centralized intermediary. Also, the technology can legalize, secure, and automatically enhance energy transactions between producers or suppliers and consumers. Moreover, it is a valuable tech for managing and transferring electricity within local networks.
As Blockchain introduces innovative solutions to challenges across different segments of the energy industry, energy companies in the UAE have made strategic partnerships to explore Blockchain in their energy businesses.
SunMoney Solar Group and DIONE Protocol Partnership
DIONE Protocol is at the forefront of integrating renewable energy with blockchain technology. It sets itself apart by prioritizing renewable energy and secure, decentralized blockchain technology. The company has a native coin, the DIONE coin. Dione’s goal is to create an environmentally friendly blockchain network. A few days ago, SunMoney Solar Group partnered with DIONE Protocol. The collaboration seeks to investigate tokenization’s potential in the context of green energy.
Siemens Energy AG and Abu Dhabi National Oil Company
The Abu Dhabi National Oil Company (ADNOC) and Siemens Energy AG unveiled plans to start a pilot project involving blockchain technology to certify the carbon intensity of various products in 2022. This project aimed at displaying the amount of CO2 utilized from the oil well to the end customer in the production of items like Murban crude oil, ammonia, and aviation fuels. Smart sensor data collected throughout ADNOC’s operational chain will be automatically recorded on a decentralized blockchain ledger. This approach enables independent regulators to verify the carbon intensity of the products.
Potential Use of Blockchain in UAE’s Energy Sector
Peer-to-peer Energy Trading
Although wholesale energy distribution remains a central focus for many companies, it is not the primary focus for all energy firms. In a peer-to-peer energy market, participants form a shared network where they can trade and purchase excess energy directly from one another. These decentralized energy markets offer advantages to the broader population by diminishing control from central authorities, such as wholesale entities.
Electricity Data Management
Blockchain has the potential to empower consumers with increased efficiency and control over their energy sources. Furthermore, an unalterable ledger ensures secure and real-time updates of energy usage data. This encompasses diverse forms of energy-related information, such as market prices, marginal costs, compliance with energy laws, and fuel prices.
Data manipulation, whether intentional or unintentional, is a common occurrence, leading to misreporting and omissions. The financial consequences of deliberate corruption and inadvertent clerical errors can prove detrimental to both businesses and governments.
Utility Providers
Electric power providers are extensive. Companies in the sector produce energy from power plants, solar farms, and diverse energy sources. Unlike financial services or the banking industry, utility providers do not compete directly with each other. This characteristic makes them more inclined to share information and data, offering a distinctive opportunity for implementing blockchain’s shared ledger.
Final Words
Blockchain technology has changed the overall processes of industries, including the energy sector. Different energy companies in the UAE have been exploring the technology.
