Blockchain facilitates the creation of a more transparent and fair electricity market environment.
The China Energy Administration (CEA) has revealed that they are studying the Implementation of blockchain-based energy trading platforms to promote the energy trading between autonomous generation units and state networks.
In particular, the CEA, a state organization that reports to the National Development and Reform Commission (NDRC), is responsible for drafting the energy policies that are carried out in the country. The agency has explained that they are studying the feasibility of energy generation and storage facilities small and medium-sized enterprises that typically serve local communities.
In a document published on August 25, the CEA points out that this new plan seeks deepen decentralization, optimization in the division of tasks and the transformation of the national energy administration.
According to the Institute of Electrical and Electronics Engineers (IIEE), the immutable property of blockchain technology It can enable transparent and reliable energy metering, as well as better proof of transactions.
In July, Insigma Hengtian Software, a Chinese software company, announced that it had received a contract to Develop and deliver a blockchain-based energy trading system for Yunnan Province.
This Chinese province has abundant hydroelectric resources and various small hydroelectric facilities spread throughout its geography. In fact, before the ban on cryptocurrencies in China, Bitcoin miners They were heading to this province because of its abundant electricity supply and a favorable price structure for mining operations.
China faces a shortage of energy resources
China is experiencing an energy crisis caused by a very long heat wave that has led to a drought. In this sense, the current climatic conditions have caused a negative impact on the production and supply of energy in China.
In recent weeks, Sichuan province has suffered a major energy shortage, which has caused widespread power outages in industrial and residential areas.
As we have explained, the drought has caused deplete a large part of the local reservoirs, which in turn has caused hydroelectric power, the main source of energy generation in the region, to be halved.
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