The China Energy Administration (CEA) plans to develop blockchain-based energy trading platforms to facilitate electricity distribution.
The recent drought and heat have had a negative impact on China’s electricity systems. In the past few weeks, there have been severe power outages in Sichuan province, along with major industrial and residential power outages. The Chinese Energy Administration, which does not prevent such problems, is also launching a new blockchain-supported attack.
Blockchain Based Energy Platform Step From China
A policy document published by the China Energy Administration (CEA) states that blockchain-based energy trading platforms will be developed to facilitate electricity trading between independent power generation units and state and national grids.
According to the Institute of Electrical and Electronics Engineers (IEEE), the immutable nature of blockchain technology can provide evidence of transparent and reliable electricity measurement transactions.
Chinese software firm Insigma Hengtian Software is said to have awarded a contract in July to provide a blockchain-based electricity trading system to the country’s southwestern province of Yunnan. Although this is not a step related to the plan, it may be a pioneer of the steps to be taken forward.
The Yunnan region is rich in hydroelectric resources and has small hydroelectric power stations. Before China’s ban, cryptocurrency miners preferred this region because of its abundant energy and cheap costs.
