One of the largest engineering and manufacturing companies Siemens (SIE:GR) is piloting a blockchain energy trading in Brooklyn, New York. According to company, this is a small scale pilot and the aim of this is to find how energy trading is working between communities.
– We are experimenting this new method of energy trading. We see that this will be one of the future trends in the energy sector and the way people can themselves trade energy as part of climate awareness, says Siemens Director of Smart Cities Julie Alexander to ComteamPUBplus.
In that project, neighbors with and without photovoltaic systems, are buying and selling solar power from each other on a blockchain platform that automatically documents each transaction. If Hurricane Sandy should hit again, this isolated network would operate self-sufficiently. This renewable energy project is a pioneer in the movement toward a distributed energy supply system. Siemens is partnering with a local start-up company called LO3 Energy in that project.
This kind of peer-to-peer business deal is very cost efficient and has great potential. According to Coimarketcap, the total value of the assets being administered via blockchain all over the world is 1,6 billion dollars.
– The energy markets are evolving with new cap and trade -markets for example in Tokyo, Japan and Ontario, Canada. And energy companies are building Smart Grids and new kinds of energy storage and are entering the market with electric cars markets and renewable energy solutions for customers. The big players, which we share, in the energy markets are for example Microsoft (MSFT:US), SAP (SAP:GR) and IBM (IBM:US). We all are working with the data related to the energy sector, Julie says.
Customers can have different kind of financing possibilities for new energy efficiency investment, but according to Julie customers are not always aware of financial instruments such as Green Bonds.
According to latest statistics the Green Bonds Markets have increased by 17 percent in the first quarter of 2017 compared with year ago. The issuance was nearly 30 billion dollars and the expectance for this year is 120 billion dollars.
Siemens market value is 113 billion dollars and the company is investing in digitalisation of the manufacturing industries, healthcare and the infrastructure sectors. The company is listed in Frankfurt, Xetra.