Energy utility businesses continue to be centralized. This is a business model with more than 100 years, going back to the XIX Century. We are at the dawn of the XXI Century, though. That was what Lawrence Orsini speaking at the Business of Blockchain conference organized by MIT Technology Review told us. His talk was one of the most interesting, for it introduced and confirmed to all the potential that Blockchain technology might bring to a quintessential classical capital-intensive economic sector.
It was interesting also by disclosing the current challenges facing the broad adoption of Blockchain technology. From a regulatory standpoint to more technological specific issues. The new wave of Internet of Things technologies is facing some hard technological challenges, from specific network interface loading problems to cybersecurity vulnerabilities.
The speaker in this talk is a founder of the company LO3 Energy. This is a startup focusing on the utility sector implementing innovative business models and new solutions on a community level. They follow the excitement around the new models emerging around the concept of the sharing economy. They believe in bringing energy efficiencies to communities by backing these new ways of distributing power across local neighborhoods. What is interesting in these developments is the direct link between the consumer creating his own energy and being able to sell the excess he/she does not need – what they called the prosumer –, a new agent in the supply chain. This enables the dividing of the energy grid in two different paradigms that are however plugged together: an energy model, that is, energy supplied to the grid or energy enabling work to be done; and a new paradigm called exergy, where there is work to be taken from the energy produced within the wider network.
featured image: Business of Blockchain – MIT