TL;DR Breakdown:
- Mitsubishi is developing an energy trading system with Tokyo.
- The platform will use blockchain technology to facilitate transactions.
Mitsubishi Electric, one of the core subsidiaries of Mitsubishi, announced on Monday the development of a new blockchain-based system geared towards energy trading. The blockchain system was developed in partnership with one of Japan’s largest research universities, Tokyo Tech. Through the system, Mitsubishi Electric plans to regulate the use of excess energy whilst facilitating effective peer-to-peer (P2P) trading.
Mitsubishi to debut blockchain-based energy trading
Headquartered in Tokyo, Mitsubishi Electric deals in the production of electronics and other electrical equipment. According to the announcement, the design for the trading platform will be handled by the electronics company, including the clearing feature. On the other hand, the Tokyo Tech institution takes charge of integrating the blockchain technology into the trading system and designing an effective clearing algorithm.
Basically, the energy trading system is aimed at ensuring optimal use of excess electricity, especially from renewable energy. The report noted that the energy trading system would be reevaluated in April to ascertain its performance and also to improve the algorithm if necessary, as they prepare to commercialize it.
The development today further highlights the application of blockchain. The technology is proving to be effective in P2P energy trading.
Blockchain application in the energy sector
Last year, Cryptopolitan reported that Siemens was developing a blockchain-based electricity trading platform in Germany. The platform will serve more like a marketplace for energy producers to sell excess electricity to buyers without using the national grid operators or any intermediary. Blockchain technology will be used to promote transparency and trust amongst the users. Meanwhile, this was a joint initiative that included other energy companies in the country.
In a separate report, the California Energy Commission committed about $9 million in August to promote the development of a blockchain system that will essentially help in the reduction of carbon footprint. The system was reportedly built on the BTC-based blockchain and will focus on renewable energy sources.
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