The future of blockchain technology according to French energy experts ( Part 1)

by Salman Khan

Blockchain technology is a decentralized digital record that is open to the public but keeps private records of peer-to-peer activities. All parts of the blockchain system can confirm that a transaction has taken place. This technology formed the spine of the popular cryptocurrency, the bitcoin, and then entered other industries. In the hope of becoming blockchain hub in the center of the European Union, Blockchain is showing a dynamic momentum in France, moving towards this technology. French Finance Minister Bruno Le Maire believes:

“Blockchain, for example, will introduce new features to our startups, such as the first coin offer that allows us to deposit money through notes.”

In December 2018, two lawmakers, Laure de La Raudière and Jean-Michel Mis, reported that the French government had spent 500 million euros on building a blockchain nation over the next three years.

The unique features of blockchain technology (lower operating costs and safety) create new possibilities for the French energy industry. Some initiatives, such as Sunchain or Evolution Energy, are currently developing blockchain-based projects aimed at decentralizing existing energy systems. Obstacles to the acceptance of large-scale blockades must be removed.

Where is the blockchain directed?

In this regard, the barometer of the energy market, commissioned by Grenoble Ecole Management (GEM) in December 2018, asked the experts for their views on the French energy industry. As a first discovery, experts were concerned that blockchain could play a significant or minor role in tomorrow’s French power system. To understand the importance and challenges of blockchain technology in the energy sector, experts have been asked to limit the work and potential benefits of some blockchain programs and make this technology more widely available.

According to experts, the most exciting purposes of blockchain technology in the energy industry over the next five years are “electric vehicle charging and sharing” and “peer-to-peer energy trading”. The blockchain guarantees to build a system that can sell electricity from the commercial area or private places without interfering with the central government’s energy resources. With the steady growth of electric vehicles, Blockchain promises to provide openly free charging infrastructure for the free use of private EV charging stations.

Nowadays, most players in the energy business are working to create energy trades with some of our peers. In 2017, Enedis launched the first P2P energy cooperation project in France, operating with the secretarial councils of French businesses Sunchain. In this project, DIGSOL explored the advantage of blockchain technology to distribute solar energy to people in a building (largely automated). However, the widespread use of P2P energy trading technology is still ineffective in France.