- On the energy front, policy makers have envisaged two main use cases for blockchain technology – battery swapping infrastructure for the e-mobility segment and facilitating energy trading.
- Achieving a combined operational efficiency of fast, low-cost and decentralised in blockchain technology is far-fetched, which could also impact the scale of adoption by ecosystem stakeholders.
- The market still offers exciting opportunities to international players, especially Swiss technology providers. The possibility of forming consortium projects with research labs and think tanks working on blockchain based solutions for the energy industry is an exciting possibility.
The energy ecosystem in India sees tremendous potential in utilising blockchain technology to optimise efficiency on multiple fronts: creation of efficient decentralised systems, solving power intermittency challenges, reducing system inefficiencies, etc. While these changes might take time to come into effect, the main area where blockchain technology is likely to make an impact in the near future is in the fast growing microgrid segment and off-grid rural areas in India.
India’s blockchain technology market size is projected to grow at a CAGR of 58% during 2018 – 24. Given its potential, policy makers are designing frameworks and proposing measures to scale up its adoption across different sectors. On the energy front, policy makers have envisaged two main use cases – battery swapping infrastructure for the e-mobility segment, and facilitating energy trading by implementing smart PPAs (Purchase Power Agreements), smart microgrids, REC Certificates Issuance, etc.
Some other noteworthy trends that are likely to emerge, as observed by experts, are 1) the use of blockchain technologies in standardising the carbon credit system, which could aid India in achieving its goal of ‘reducing emissions by 30 – 35% by 2030’ and 2) increasing innovation in green financing by offering greater transparency of operations, etc.
Despite the promises, there are some hurdles to overcome. Achieving a combined operational efficiency of fast, low-cost and decentralised in blockchain technology is far-fetched, which could also impact the scale of adoption by ecosystem stakeholders.
Nonetheless, the market still offers exciting opportunities to international players, especially Swiss technology providers. Electric vehicle charging, sharing and battery swapping is a key area, given the strong push from the Government of India to scale up EV penetration to 30% by 2030. Similarly, the wholesale electricity trading and settlement market is likely to see a lot of growth and offers potential for collaboration with international players. With research being given a lot of prominence, the possibility of forming consortium projects with research labs and think tanks working on blockchain based solutions for the energy industry is another exciting possibility.
To gain a deeper understanding of the intricacies, key players, opportunities and challenges of India’s budding blockchain industry and its relevance in the energy ecosystem, read the report by Gaganjot Kaur.
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