Japanese IT giant Fujitsu has announced the development of a blockchain-based system to boost electricity exchange between enterprise consumers. The system will lead to a more stable energy supply at peak periods.
Fujitsu stated that it had tested the patent-pending blockchain system in collaboration with electric power distribution company ENERES. They were able to achieve a 40 percent increase in efficiency compared to the existing system called demand response (DR).
DR enables electricity consumers to balance demand and supply of power. It achieves this by reducing or shifting the electricity usage during peak periods. The consumers are given incentives in return. Fujitsu pointed out that there was a need to improve the DR, explaining that power aggregators who serve as the middlemen interact with electricity consumers individually to achieve power-saving targets.
The Fujitsu blockchain system will quickly determine how much energy is available from sellers. This would be matched with the available buy orders to receive a faster response at peak periods.
The company stated that “Improvement to the DR control success rate is expected to lead to more consumers participating in DR schemes. Moreover, this will enable the stable supply of electricity and the expansion of renewable energy use, another goal of the DR scheme. Fujitsu Limited and Fujitsu Laboratories will carry out further system verification and strive to build a carbon-free society.”
Fujitsu on the expansion front
Fujitsu has been developing blockchain-based tools and systems over the past few years. In October last year, the company developed an inter-bank settlement system with the aim of achieving the low-cost transfer of small transactions.
In June 2018, the company also launched a blockchain-based data storage system. The system is used by retail merchants to tokenize traditional promotional tools like coupons and others.
The company concluded that “With the cooperation of ENERES, Fujitsu conducted simulations of the new system in the two terms of 2018, summer and winter. Using the actual logs of energy consumption of 20 consumer sites, the companies observed the situation in which electricity consumers could exchange electricity among themselves. As a result, the company confirmed a maximum improvement to the DR success rate of about 40%, compared to conventional methods. By supporting the advancement and popularization of DR with this system, Fujitsu will contribute to the creation of carbon-free society.”