Electron, an energy technology firm using blockchain technology and based in London, has just secured a substantial investment from OVO, a foremost energy company in the United Kingdom. According to an official post from OVO’s blog, the investment was done through Kaluza, a technology section of OVO.
The division – Kaluza – is a tech company that seeks to deliver energy products (including software and hardware) to the energy industry. Kaluza has now invested in Electron with the goal of helping Electron with its establishment and adoption of some services for trading distributed energy. Income from this investment deal will reportedly be used for the creation and development of energy platforms.
According to the post:
“The development of Electron’s shared asset register will be crucial to supporting the growth of Kaluza and deliver on its mission to securely connect all devices to an intelligent zero-carbon grid.”
Stephen Fitzpatrick, founder and CEO of OVO and also Kaluza, was quoted saying:
“We’re delighted to be supporting the Electron team who have built great technology that’s fast becoming an important part of the energy system.”
Sometime last month, it was announced that a 20 percent stake of OVO was bought by Mitsubishi. Since then, this is the first major investment from OVO, the seventh largest energy supplier in the U.K. today.
Use of Blockchain in the Global Energy Sector
There are various examples of how Blockchain has been used in different energy sectors, worldwide. For example, the Bangchak Corporation Public Co. Limited (BCP), a petroleum refinery in Thailand, kicked off a process that tested an energy platform and commercial microgrid based on blockchain, earlier this month. This project is going to be used as an addition to complement the already established electricity sources for the firm’s fuel stations. It is also expected to be used in the generation, supply and stowage of energy for a few shopping malls around the stations.
Also, in February, Kyocera, a Japanese supplier of solar solutions, officially entered a partnership with another energy firm, LO3, to run certain tests for Virtual Power Plants (VPP) based on blockchain. It is hoped that this would bring about a more efficient method for distributing energy. It is also expected that the test will let both firms do a proper appraisal of these VPPs viability.
Future of Blockchain in the Energy Sector
Globally, the use of blockchain in the energy industry is projected to rise by at least 60 percent over the next 5 years. This projection, the result of a research done by Infoholic Research LLP, stated that the market was worth $210.4 million last year and will be worth $3.4 billion, by 2024 with a compound annual growth rate of 59.4 percent.