The tech company Electron has been awarded a government grant to prove how blockchain will transform the market for balancing the electricity grid.
The firm has received an undisclosed sum from the Energy Entreprenuers Fund to scale and integrate a blockchain trading platform, which will allow electricity consumers to be paid to adjust their energy consumption.
According to Electron, the platform will allow multiple parties to coordinate and share the value of a single consumer’s action, which is known as “collaborative trading”
“Blockchain is not just about a technology,” said chief executive, Paul Ellis. “It is a revolutionary new way of transacting business without a central intermediary.
“Removing this intermediary enables new, better models of co-operation on an efficient, demonstrably fair platform.”
The platform has also been awarded 2017 tech pioneer status by the World Economic Forum (WEF).
“Electron’s pioneering use of blockchain tackles the energy usage challenge by increasing transparency and providing a framework for collaboration,” said the head of WEF’s tech pioneer programme, Fulvia Montressor.
“Solutions like this are important tools to ensure energy needs are met while environment impacts are minimised.”
In April, it was announced the former chief executive of Npower, Paul Massara, had joined the board of Electron.