Mitsubishi Electric Corp. and researchers at Tokyo Tech University in Japan are working together to create a blockchain platform for P2P electricity trading.
The new system will effectively sell and use surplus electricity from renewable sources. The developers hope that, thanks to the trading platform, there will always be a surplus of energy available to consumers in the market.
In this case, the platform will be peer-to-peer – that is, participants will be able to sell and buy energy from each other directly. Blockchain is used to distribute complex computations among participants, and to enable efficient settlement of buy and sell orders.
The developers specially optimized the algorithm so that the computers of the participants “exchange trading targets” and data in order to “optimally match buy and sell orders, consuming the minimum amount of resources.”
“Information on orders with a general trading purpose is transmitted to servers within a predetermined period of time. Each server looks for buy and sell orders that match this target, then the servers exchange their search results. Each blockchain server receives search results and generates a new block, choosing deals that best suit the overall goal, ”the developers tell the principle of creating blocks.
Mitsubishi and Tokyo Tech expect access to a free electricity market to lower prices for certain consumer goods in the market, such as electric vehicles. In addition, such a peer-to-peer system will remove the need for energy companies to respond to market fluctuations – this will happen automatically.
Testing of the system should be launched in April this year, with the developers hoping to bring the platform to commercial use as quickly as possible.
In August 2020, Mitsubishi launched the ECO blockchain trading platform for metals trading.