Shanghai-based startup Energo Labs is using blockchain technology with microgrids to push “peer-to-peer” (P2P) energy trading in the Philippines and in other parts of Southeast Asia.
The company said in a statement that in the Philippines, the three main grids— Luzon, Visayas and Mindanao —were prone to damage, resulting in unstable supply of electricity.
Energy Labs also observed that the majority of power plants were far from the load centers, leading to long-distance transmission lines that can often be damaged and are risky and costly to operate.
“One way to ensure energy security in such a location is by decentralizing the generation and creating a Decentralized Autonomous Energy (DAE) community, so that energy can be produced anywhere and shared between consumers around the neighborhood,” the company said.
Energo Labs uses microgrids with a storage system so that energy producers, such as those with solar panels, can sell their electricity to their neighbors.
The startup said this type of P2P energy trading, based on infrastructure that would be operated and maintained by the local community, opened up the energy market and allowed areas to meet their base load electricity demand using clean energy.
Energo Labs said its decentralized solution encouraged communities to first use the renewable energy generated in the microgrid, thus “decarbonizing” the energy sector, and provided solar PV cell owners a new source of income.
“The energy produced and consumed by each house in the microgrid, as well as the amount bought and solar between houses, is quantified by Energo smart meters, and blockchain technology is used to eliminate the need for a third party to carry out energy transactions while ensuring all data is still secure and transparent,” Energo Labs said.
This means electricity can be bought and sold via the Energo phone app.
Blockchain, initially used as a method of accounting for virtual currency Bitcoin, is now being used in different commercial activities.
Energo Labs said it has projects underway in the Philippines, “which has ignited interest in the potential of blockchain in the country while highlighting how different types of microgrids can be implemented across islands.”
The startup will also be launching projects in Southeast Asia, the Netherlands and South Korea.