German tech giant Siemens’ energy divisions join an open-source blockchain platform Energy Web Foundation.
Two energy divisions of German tech giant Siemens have joined a blockchain-driven energy platform to promote the use of decentralized technologies in the sector, according to a press release published Wednesday, Nov. 21.
According to Siemens, its Energy Management and Power Generation Services departments are partnering with open-source, scalable blockchain platform Energy Web Foundation (EWF), founded in 2017 to elaborate regulatory, operational, and market solutions for the energy sector.
Siemens officials believe that blockchain technology will help increase interoperability in the area, linking consumers with energy producers and network operators, the press release writes. Moreover, the technology could help increase the efficiency of energy systems and enable new forms of project financing.
The statement also notes that Siemens is already using blockchain accompanied by microgrid control solutions to optimize control over energy consumption. For instance, in 2016, the German firm collaborated with U.S. startup LO3 Energy to develop microgrids
that enable local trading between energy consumers and producers on a blockchain platform. The solution was trialed in one of New York’s boroughs, Brooklyn, enabled to feed the excess electricity back into the local grid and receive payments from its purchasers.
As Cointelegraph previously reported, the company’s financing arm, Siemens Financial Services (SFS), took part in a blockchain pilot in August for bank guarantees using R3 Corda technology, launched by U.K. multinational banking and financial services company Standard Chartered (SC).
Blockchain is actively tested by major energy industry players in different countries. For instance, major Singaporean utility company SP Group, which provides electricity and gas transmission in the country, launched a blockchain marketplace to trade solar energy. Also in Asia, South Korea’s largest power provider KEPCO will use blockchain and other innovative energy solutions to develop an eco-friendly microgrid.