Yesterday the Energy Web Foundation (EWF) announced that the German supplier of energy storage systems Sonnen group uses its Energy Web Chain and EW Origin software suite for a Virtual Power Plant (VPP) in the country.
A VPP is a network of decentralized and distributed power generation units such as wind farms, solar farms as well as storage systems. Sonnen’s VPP in northeastern Germany will leverage blockchain to absorb excess wind production by charging batteries. When more renewable energy is produced than needed, the waste is called reduction.
Based on data from Global S&P, Germany reduced by 3.2 TWh (terawatt hour) of wind energy in 2019. In 2018, the country reduced by 5.4 TWh of renewable energy. In an environment where governments are trying to increase reliance on renewable energy, these numbers are worrying.
Sonnen will leverage a blockchain application built using EW Origin to match the planned excess wind power supply to the storage capacity of the VPP. Once the planned excess energy has been reported by the grid operator, the VPP of sonnen will offer to absorb some of it and use EW Chain for financial settlement. The solution will use EW Dai, a stablecoin on the Ethereum network.
The German battery system supplier uses a suite of software and technologies from EWF called Energy Web Decentralized Operating System (EW-DOS), an open source software and standards stack.
âEW-DOS focuses on two of the most important use cases for evolving power systems around the world: improving renewable energy markets and harnessing distributed energy resources (DER) to improve flexibility of the network, âsaid Micha Roon, CTO of EWF.
Currently, distributed energy resources (DERs) such as electric vehicles, batteries and smart devices are not at the center of the concerns of network operators, possibly due to their high cost. However, blockchain smart contracts simplify this process and can connect DERs to the core network.
“With a flexible market for renewables and the automatic exchange of supply and demand through the digital exchange” EW Origin “, we are taking the next step towards a smart grid that can cope in a much more flexible way fluctuations in renewable energies “, declared Jean -Baptiste Cornefert, Managing Director of sonnen eServices.
EWF’s blockchain went live in June of last year and has since integrated some decentralized applications (dApps). Engie’s blockchain startup, The Energy Origin (TEO), was one of the first to migrate its dApp to the EW chain.
EWF has over 100 affiliate members, including leading companies such as German utility company EnBW, Total, GE, PG&E, Shell and Siemens, among others.
Last year, Thai energy giant PTT said it was working with EWF to launch a blockchain-based renewable energy market. More recently, Japanese utility Minna Denryoku (Minden) said they have completed a blockchain trial for the renewable energy market with EWF.