Korea Electric Power Corporation (KEPCO), the largest South Korean power company, has announced the development of a blockchain-based microgrid dubbed the ‘Future Micro Grid’.
Kim Jong-gap, President and CEO of KEPCO, said that the structure called KEPCO Open MG will be the basis for open energy community, which will play a key role in uniting the components of the existing microgrid technology with a blockchain implementation.
According to the company, existing microgrid setups made up of small photovoltaic cells, wind turbines and energy storage devices, cant ensure a stable supply of electricity to end users. However, this problem can be eliminated by means of a fuel cell used as energy source.
Power-to-gas (P2G) technology enables to convert electricity into hydrogen and store it for the required period. Then hydrogen can be converted back into electricity using a fuel cell. Thus it is possible to significantly increase the independence and effectiveness of energy, which is impossible to achieve when using existing microgrid.
In addition, KEPCO Open MG may also have a positive impact on the economic aspect and the development of energy infrastructure that will underpin the so-called hydrogen economy.
KEPCO President said:
"The three main trends in the modern energy industry are decarbonization, decentralization and digitalization. Through the project, our company will show the speed of new and renewable energy generation and energy efficiency projects. We will be suppliers of energy platform to to drive energy conversion and digital conversion".
The statement also provides an example of the use of blockchain project KEPCO Open MG in which structure gives the possibility of fast connection to increase work efficiency and electricity trade in the various microgrid. Thus all the vulnerabilities of connecting to the system will be eliminated, and microgrid technology will be able to develop steadily.
KEPCO claims that their project will allow network operators, customers and other representatives of the energy industry to participate in trade and cooperate with each other on favorable terms. Previously, it was challenging because each provider of micro-networks used different technological standards, thereby provoking the emergence of compatibility issues.
The company also plans to develop the world’s first mega-wattage energy-independent microgrid under the KEPCO Open MG framework. Despite the system has not been launched yet, all Korean provinces participating in the project will be announced within the next month. Currently KEPCO is negotiating with various representatives of industry in the the microgrid ecosystem.