Kyocera, a Japanese solar power supplier, has collaborated with U.S based LO3 Energy to experiment blockchain-based virtual power plants (VPP), according to a press release published on February 25.
Virtual power plants (VPP) utilizes a peer-to-peer distributed consensus network for advanced energy distribution. The experiment will enable the companies to estimate the feasibility of VPPs that promote a low-carbon society without carbon emissions based on peer-to-peer (P2P) distributed consensus network.
LO3 Energy posted on Twitter that – the need to decrease carbon emissions is exerting a profound influence on energy providers worldwide. By utilizing distributed ledger technologies, our networks facilitate the micro energy transactions required to accelerate Japan’s transformation to a low-carbon society.
The need to reduce carbon emissions is exerting a profound impact on energy providers worldwide…Using distributed ledger technologies, our networks enable the micro energy transactions needed to accelerate #Japan’s transition to a low-carbon society https://t.co/Yv9TGIzMCj
— LO3 Energy (@LO3energy) February 25, 2019
According to the report, the experiment will start from February 28, 2019, at Japan’s Kyocera’s Yokohama Nakayama Office in Kanagawa Prefecture. Kyocera will install a small VPP by using its solar photovoltaic (PV) modules and batteries in the Yokohama Nakayama Office. The companies will further advance their Virtual Power Plants (VPP) technology using data from each IoT sensors to increase accuracy through blockchain technology.
LO3 Energy’s peer-to-peer platform encourages controlled power generation and availability among connected users, which promotes an effective test environment.
The power generation data can be exchanged between Kyocera and LO3 through API (Application Programming Interface). The data is managed by the Aggregation coordinator which processes forward to distribute power by the project’s simulated Transmission and Distribution System Operators.
Further, the energy will be managed by LO3 Energy’s distributed ledger technology to log and control energy flow. LO3’s blockchain technology is employed for verifying and recording transactions, which increases consumers’ sharing of energy they produce with their own solar panels through a microgrid, which can lessen the burden on the larger energy grid.
As per the report Hironao Kudo, Deputy General Manager of Kyocera’s R&D Group stated:
“We are excited to be the company in the area of grid management in Japan to collaborate with LO3 Energy, which has consistently proven its blockchain technologies all around the world.”
Lawrence Orsini, CEO of LO3 Energy also stated – “The need to reduce carbon emissions is exerting a profound impact on energy providers worldwide.”
Both companies are planning to develop their VPP technology further using data from the Internet of Things (IoT) sensors. It will enhance the accuracy of distributed power sources used by the project’s simulated transmission and distribution system operators.
Recently, LO3 had collaborated with Japanese firm Marubeni to enhance automation and performance by employing blockchain in Marubeni’s renewable energy offerings.
Through this experiment, the companies will develop new ways to extend the efficiency of existing energy transmission and distribution networks in Japan and across the world.