Interest in blockchain enabled by energy trading is rising in Asia. This is not surprising as the region welcomes distributed ledger technologies and is home to many blockchain and cryptocurrency startups.
Blockchain-based energy trading originally picked up in the USA, Australia, and Europe, and it now gain more and more popularity from Japan to Singapore. These regions actively collaborate with established energy trading platforms from the likes of LO3 and Power Ledger. According to Power Ledger analyst, Marrah Fry: “There is an immense appetite for blockchain-based energy trading in Asia; we have received a great deal of support for our two announced projects in this region.”
LO3, the USA-based energy trading company, is behind successful projects such as the Brooklyn Microgrid, where members can sell their extra energy generated from solar panels and diverse alternative resources to buyers in the neighborhood. LO3 Energy Australia Director Belinda Kincaid said her company is looking at trading opportunities in Asia and it will be announcing two new projects in Japan. She did note, however, that whereas some countries are eager to embrace the new technology, such as Japan or South Korea, other regions might be initially less receptive and do not instantly see how this innovation brings them value.
Power Ledger, originating from Perth, Australia, has projects in Japan, Thailand, South Korea, and the Philippines. According to cryptovest, the project in Thailand is considered unique and is in collaboration with Thai renewable energy developer BCPG and a partnership with Japan’s second-largest utility Kepco. Despite some recent challenges, as some planned fees on blockchain-linked trades announced by the Energy Generating Authority in Thailand, the project is showing great potential and interest in the southeastern country.
According to Willie Khoo, Product and Strategy Manager at the Singapore-based energy blockchain firm Electrify, one of the goals is to raise awareness in Asia about the benefits of using distributed ledger technology. People and companies become significantly more receptive towards blockchain once they manage to understand the technology and possibilities.
“The grids are becoming more and more decentralized,” Khoo said. “The markets are opening up to not just commercial and industrial entities, but also to residential households. The opportunities are there, especially in Asia.”
These collaborations are only the start of bringing a new way to handling energy, and establishing more sustainable practices. The openness to innovation and new technologies in Asia is exemplary, and it shows great potential in the development of the region.
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