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Energy Business and Blockchain #3 Setting off the second wave of energy trading platform
In my previous article, I presented the trend of democratization of energy infrastructure investment that used be largely led by nations and corporations with large capitals, and the trend of proliferating infrastructure funds and financing that uses cryptocurrencies. I also reviewed benefit of applying characteristics of blockchain technology to energy infrastructure investment. In this article, I will discuss penetration of energy trading platform, the most popular application of blockchain technology in the energy sector. The first wave that started in 2016 2016 was the year when blockchain technology was first brought to the energy industry and exciting pilot projects that envisages future of energy industry started in different parts of the world. First, in April 2016, LO3 Energy, a startup company in the U.S.A. started operation of Brooklyn Microgrid in a corner of of Brooklyn, New York. It allows local residents to trade attributes of clean electricity generated by rooftop solar PVs of the local community in a peer-to-peer (P2P) fashion using blockchain technology. A novel concept of sharing energy among neighbours in the era of abundant distributed energy resources such as solar PVs drew attention.   In May, in the headquarter of Nasdaq in New York, a demonstration was conducted that converted electricity generated by solar PV in the Western U.S.A into certificates tradable on Nasdaq Linq, a blockchain-based market, using IoT technology developed by a Nevada-based startup, Filament. This demonstration presented that electricity can be easily traded using blockchain technology after being converted to a digital asset.   Subsequently in August, Power Ledger, an Australian startup company commenced a pilot of a P2P energy trading in National Lifestyle Village in Western Australia. Further, the company also started another pilot in Auckland, New Zealand, partnering with Vector Ltd., a New Zealand distribution utility. Like LO3 Energy, those are the…