Blockchain, a subsidiary of the port of Rotterdam, Blocklab, is testing a decentralized trading system to reduce costs and improve the use of renewable energy in the small grid.

The system, called Distro, was jointly developed with Blocklab and S&P Global Platts and has been used as a two-month trial.

Distro uses blockchain technology, smart contracts, and artificial intelligence to support the circulation of high-frequency decentralized renewable energy by commercial consumers who want to improve energy consumption and management. It meets the demand with cyclical power generated from a variety of sources, especially from solar panels and batteries.

Each market participant is assigned an AI trading agent who studies their behavior, options and needs and gives them energy at the best price. Buyers and sellers have access to local dynamic energy prices, and the system is designed to prevent energy overconsumption with low output by offering lower prices when there is excess supply. Blocklab said it is based on “proven commodity and financial market practices” optimized by artificial intelligence to automatically balance supply and demand.

The lawsuit involved 20 million verified and blockchain-based transactions, cutting costs for commercial users by 11% and increasing revenues for local renewable energy producers by 14%.

In particular, the use of the system increased the on-site solar energy consumption by 92%, which Blocklab claims can help combat energy waste. More ambitious is the claim that Distro can help companies achieve “carbon savings of up to 30 million tons”.

Nikko Van Doren, Director of New Business and Portfolio Development at the Port of Rotterdam said:

“Balancing domestic electricity needs with local production is the key to achieving significant savings in grid infrastructure. We are pleased with the scalability of this solution and the significant contribution it can make to help the port of Rotterdam to become carbon neutral by 2050.”
Smart contracts are used in high-frequency trading to enforce market rules, verify transactions, and manage digital identities. The unchanged and transparent characteristics of the blockchain, along with provisions for privacy and crypto validation, will meet the requirements of industry audits, including Blocklab and S&P Global Platts.

The banking environment for virtual accounts used for transfers in the market was made available through ABN AMRO Banking as a sandbox.

As Cointelegraph previously mentioned, the port of Rotterdam is no stranger to blockchain technology. This summer the port launched a pilot project to encode traditional PIN codes, and it has also become one of the largest international ports to join Blockchain TradeLen’s logistics platform.

Source: CoinTelegraph