Web3 & The Future of Energy - The 2 Big Trends! (Article 7)
Gareth Evans
Empowering Businesses to Own Their Energy | CEO & Founder at VECKTA | Simplifying Onsite Energy for Sustainable, Profitable Success | Writer, Speaker & Podcast Host Inspiring Positive Change
It has been a little while since I wrote the last article in the Web3 & Energy Transition Series. So lets get back to it.... how are they connected?
Web3 and the energy transition are two of the most important trends shaping the world today. The former is the next evolution of the internet, where users have more control over their data and online identities. The latter refers to the 4Ds - decarbonization, decentralization, digitization and deregulation (https://youtube.com/shorts/0kJSgYZLpqE).
At a glance, these two trends may seem unrelated, but in reality, they are highly interdependent. The decentralized and transparent nature of Web3 technologies will play a critical role in enabling and accelerating the energy transition.
One of the biggest challenges facing the energy transition is the need for greater transparency and accountability in the energy sector. This is where Web3 technologies can make a significant impact. The decentralized, peer-to-peer nature of Web3 will make it possible to track the production, consumption, and trading of energy in real-time, without relying on intermediaries. This will enable the creation of decentralized energy markets. These markets, will allow for the real-time trading of energy between producers and consumers, giving everyone (businesses and residents) a stake in the energy transition. Prosumers (consumers who also produce energy), supported by intuitive and simple apps, will be able to sell excess energy/carbon credits or a reduced consumption back to the distribution operator (maybe utilities as we know it, maybe other entities in the future?) or to other interested entities (your family, friends, local business or corporations - in exchange for money, points, product, feel good factor...), and consumers will be able produce, store and purchase energy when they need it and specify what "type" of energy they want if they need more than they produce - cheapest, cleanest etc.
Another opportunity for a Web3 enabled energy transition is the ability to address the need for greater flexibility in energy systems. With renewable energy sources like wind and solar, energy generation is highly variable and dependent on weather conditions. To overcome this challenge, energy systems need to be able to respond quickly and efficiently to changes in demand and supply. A technology enabled grid leveraging the applications discussed above, will enable us to balance and manage energy consumption and production in realtime. This increased flexibility will help to make the energy system more resilient, as well as more efficient. And we will likely see all our business equipment and home products with embedded batteries that will be utilized to store and use energy to balance loads and manage energy costs. Such technologies will give prosumers the opportunity to simply give the system operator the ability to turn their chosen equipment/devices off/on in return for money/credits when they need to reduce the overall load on the gird.
In addition to these practical benefits, Web3 and the energy transition also have the potential to drive innovation in the energy sector. With greater transparency and flexibility, developers will be able to create new tools and services that help to manage energy consumption and promote sustainability. For example, blockchain-based platforms could be used to develop energy-efficient devices that automatically adjust their energy usage in response to changes in the energy market. Today all the data and control is in the hands of utilities - with more distributed ownership and access the whole model will change and unlock the potential for more competitive commercial models to be implemented.
The energy transition and Web3 are also aligned in terms of their values and objectives. Both are focused on creating a more sustainable, equitable, and decentralized world. By enabling one another, these two trends will help to build a more sustainable and resilient future for all.
In summary....Web3 technologies will play a critical role in enabling and accelerating the energy transition. As these two trends continue to evolve and grow, they will help to build a more sustainable, equitable, and decentralized world for all.
What do you think the future holds?
领英推荐
Article 1 - Web3 and the future of the energy sector
Article 2 - The origins of the Web & the energy grid
Article 3 - The monopolistic Web1 Utility Energy Model
Article 4 - Web2 Opportunities, Learnings & Costs
Article 5 - Today's Web 2 Energy Landscape
Article 6 - Optimizing your energy strategy today
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This is interesting to think about Gareth. Do you know of anyone that is actively applying Web3 technology to enable the energy transition?