Smart cities are increasingly reliant on green energy, but despite the falling costs of renewable sources, energy availability remains a major challenge. Blockchain technology, originally developed for Bitcoin, is now offering innovative solutions to support smart grids and bring energy production closer to end-users. Could blockchain become the key driver for the future of renewable energy and smart infrastructure?
This edition of DirectIndustry e-magazine explores three green energy platforms powered by blockchain technology.
In November 2017, Lazard’s report revealed that renewable energy prices have reached historic lows, with large-scale solar power costing as little as $46–53 per megawatt-hour—cheaper than traditional thermal power. Over the past four years, solar prices have dropped by 36%. However, cost isn't the only issue. Wind and solar power are intermittent, and their generation sites are often far from where the energy is needed, creating inefficiencies in distribution.
**01 Microgrid**
In 2016, Siemens partnered with U.S. startup LO3 Energy to build an energy trading network using blockchain. Since April 2016, LO3 has enabled Brooklyn residents to connect rooftop Solar Panels to a local microgrid. Homeowners can trade electricity within the network, and blockchain ensures secure, tamper-proof transactions. Even those without solar panels can buy power through the system.
Scott Kessler, LO3’s business development director, explained that blockchain allows small producers and consumers to adjust their buying and selling based on real-time generation and demand. Solar panels or other energy systems can be integrated into the microgrid.
“We’re building power trading platforms for microgrid equipment,†he said. “We believe blockchain is the most effective communication protocol for such systems.â€
Traditional grids rely on centralized control, but blockchain enables decentralized access, allowing real-time grid management across multiple devices. This shift is changing how energy is produced and consumed, bringing it closer to users.
Currently, small producers can access wholesale rates and may also receive environmental incentives. This model reduces long-distance transmission, making local energy supply more efficient and accessible.
**02 Local Energy Closed Loop**
LO3 isn’t alone in leveraging blockchain for green energy. Greenflex, a French energy company, is collaborating with BlockchainPartner to develop a “local energy closed loop†system. Lucas Elicegui, Greenflex’s chief innovation officer, explained that future energy systems will be more localized.
“Currently, only a few local producers must decide in advance whether to generate power for themselves or sell it,†he said. If homes and offices have solar panels, they often produce energy at different times. Selling surplus directly to the local grid makes more sense than sending it back to the national grid.
For both generators and consumers, this creates a win-win: generators get better returns, and consumers enjoy lower prices. Blockchain tracks production and purchase data, managed through automated programs. Greenflex and BlockchainPartner aim to launch a prototype platform by year-end.
These models are reshaping the green energy economy, encouraging investment and new opportunities.
**03 Token System**
Lithuanian startup WePower is taking a different approach. It allows developers of new energy projects to sell “tokens†before constructing large-scale plants. This blockchain-based system offers financing options for developers while providing buyers with discounted energy prices.
Commercial customers can purchase tokens in advance, securing future energy rights and lowering electricity costs. CEO ArtÅ«ras AsakaviÄius told DirectIndustry that without subsidies, banks require higher upfront capital. WePower provides an alternative funding source, helping commercial clients meet sustainability goals.
The company has already secured a pre-order for a 1,000 MW solar project and plans to launch its token platform next year. This innovative model could revolutionize how renewable energy is funded and traded.
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JIANGSU BEST ENERGY CO.,LTD , https://www.bestenergy-group.com