Ofgem grants authority for a consortium, led by EDF Energy R&D UK, to trial an innovative blockchain platform that will enable domestic consumers to buy and sell energy amongst themselves.
PassivSystems is working within a consortium led by EDF Energy R&D UK, which includes Electron, Repowering London and University College London, to trial a peer-to-peer local energy trading platform. Ofgem has granted a regulatory sandbox to enable delivery of the project, which is a license that allows the consortium to work outside of the current regulatory framework.
Ofgem has designed the regulatory sandbox to allow innovators to trial new business products, services and business models that cannot currently operate under existing regulations.
The project will focus on delivering a technology platform and business model that enables tenants in a multi-occupancy building in London to trade energy between themselves. Under current regulations, customers cannot buy from or sell to other consumers. The aim of the platform is to allow residents in urban areas to source their energy from local renewable assets and trade it with neighbours to increase self-consumption and reduce costs.
“We believe that this is the first regulatory sandbox for energy in the world,” said Colin Calder, chief executive, PassivSystems. “We now have the go ahead to break the traditional rules of the energy market in order to build a platform for peer-to-peer trading. This project aligns with our vision to drive reform in energy markets, and is a perfect fit with our expertise in blockchain technology.”
PassivSystems will develop interfaces between the blockchain trading platform, energy assets and consumers. This will enable consumers to choose when and with whom they trade power, and to share equitably the benefits of local solar generation.
Having received the sandbox authority, the consortium has an obligation to deliver the project within a two-year period.