Due to the numerous links involved in the energy sector, the energy internet still has a series of problems such as accurate measurement, self-discipline control, optimization decision-making, and wide-area coordination. In the industry, blockchain technology is expected to become a powerful tool for solving problems.

At present, China's energy Internet has moved from concept to action.

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As we all know, behind the birth of Bitcoin is the support of blockchain technology. Although bitcoin is currently watching more and more voices, but blockchain technology has not been abandoned, but has been more and more attention of other industries Which includes the energy Internet.

Not long ago, the U.S. Department of Energy invested millions of dollars in the development of blockchain network security technologies to ensure the safety of distributed energy on electricity networks. In the face of new technologies, China's power industry has also begun to act. The reporter learned from the State Grid Zhejiang Electric Power Company that the blockchain platform with independent intellectual property rights jointly developed by the company and the State Grid Information and Communication Industry Group has been deployed and tested at the Zhejiang Institute of Electrical Engineering.

Energy Internet is an inevitable trend in the energy industry. According to China's mid- and long-term plans, the construction of energy Internet will be basically completed in 2025, forming the electricity market structure of “West-to-East power transmission, North-South power supply, water and electricity, wind and solar power, and cross-border interconnection”.

However, due to the numerous links involved in the energy sector, the energy internet still has a series of problems such as accurate measurement, self-discipline control, optimization decision-making, and wide-area coordination. In the industry, blockchain technology is expected to become a powerful tool for solving problems.

From concept to action

“Smart energy is transformed from a simple concept to industrial innovation. Just like breaking through into a butterfly, only after strenuous struggle and unremitting efforts can the inherent beauty be blossomed.” This is Wang Zhongmin, Chairman of the China Strategic Alliance for Smart Energy Technology Innovation in 2017. A word written in the China Energy Internet Conference and the Smart Energy Industry Expo.

"China needs an energy revolution too. If China's energy is not revolutionized, our development will not be sustainable." Wang Zhong sighed with sensitivity. In the new round of global scientific and technological revolutions and industrial changes, the Internet concept, advanced information technology and the energy industry are deeply integrated. It is promoting the emergence of new technologies, new models and new forms of business in the energy internet.

"Internet + smart energy" or "energy Internet" is a new form of energy industry development in which the Internet and energy production, transmission, storage, consumption, and energy markets are deeply integrated. It has device intelligence, multi-energy cooperation, information symmetry, and supply-demand dispersion. , the system is flat, trading open and other main features.

At present, China's energy Internet has moved from concept to action. The National Energy Administration organized and implemented the application and selection of energy internet demonstration projects, and issued the "Notice of the National Energy Administration on Promulgating the First "Internet +" Smart Energy (Energy Internet) Demonstration Project", the Beijing Yanqing Energy Internet Comprehensive Demonstration Zone, etc. 55 projects were selected.

The degeneration of the first batch of 55 demonstration projects also heralded the development of the Internet of Energy from concept concepts into practical operation. From the industry's point of view, from the “seeing the fog” to the prospects, under the escort of the system, thanks to the sharp drop in energy costs, the air of energy internet has come.

It is predicted that the pilot project for the Internet of Energy will drive more than 40 billion yuan in investment this year, and the market scale will exceed 10,000 billion yuan in 2020, stimulating the development of related equipment such as energy storage and smart grids.

"Last year and the year before last year, everyone was still discussing what is the energy internet, why the energy internet is to be done, and what the energy internet might look like, but this year we tend to call it the year of landing, that is how we do it." Tsinghua University Energy Internet Sun Hongbin, director of the Energy Management and Regulation Research Center of the Innovation Institute, told reporters.

However, while the energy Internet has become a paradise for innovation and entrepreneurship, it should not be overlooked that China’s energy internet is still at the most critical stage of “breaking ice” and it is not easy to push forward in the face of many stumbling blocks.

Loss of credit is a major obstacle to digitalization

“Energy Internet faces an unprecedented number of participants and the number of equipment we have to bear has grown exponentially. How can we manage these terminal equipments and enable it to serve our specific target? Each of our users and every enterprise cannot "It's good to be alone." Zhu Xi, chief scientist of the Datong Blockchain Technology Research Institute in Beijing, points out the difficulties faced by the Internet of Energy.

At present, China as a whole has entered the digital era. The financial sector has become a highly digitized industry. In the energy field, due to its large infrastructure and large accumulation of technologies, it will lag behind in the digital era.

At present, there are four main problems in the existing model of the energy market: serious centralization - a few large energy companies serving millions of customers; poor transparency - poor market liquidity and control by financial brokers; lack of saving power - energy companies By earning money by selling more energy, they discourage users from changing their behavior; lack of competition – barriers to entry into the field are high, regulatory complexity and high cost of entry into the market are the two main monopolies of all major power markets in the world. the reason.

Therefore, in the digital society, how to activate the serious energy sector is also a problem that the industry is keen to explore.

“In the energy trading scenario, there are different institutions such as power grids, generators, consumers, and bank clearing agencies. We cannot establish a dedicated data center for energy trading. We can only connect these scenarios together to create a new one. Digital society.” But how to convince everyone to put the data out and put it in a data center, Zhu Xi’s point of view, this operation is very difficult.

"On this basis, it will involve a series of issues such as security, privacy, legality, and supervision. It is actually a problem of lack of credit in the digital society." Zhu Xi said, "In this scenario, we It's just as simple as studying the blockchain and studying any other data exchange infrastructure. What we need to do is to establish a trustworthy, transparent, and retrievable system for data exchange and business collaboration."

Energy Internet chooses blockchain

So, how to solve the above problem? Who will bear such an executor? To really touch reality, obstacles must be removed. The biggest constraint is the monopoly of the energy system. In the end, Energy Internet chose blockchain technology.

"It's not that the technology of blockchains is hot, but blockchain plus smart contracts in technology selection make it possible to trade in the virtual world." Zhu Xi said, "Because of the invisibility of blockchain, we will build such strong The connection between the virtual world and the real world."

In the process of informatization of the power system, data is stored centrally in a “center” and cannot completely guarantee the authenticity and reliability of the data. The blockchain adopts a series of technologies such as distributed storage and cryptography to ensure that the data cannot be tampered with, guarantee the truth of the data, and provide important network infrastructure for power measurement, trading, and finance.

"It can be said that the emergence of blockchain and smart contracts will have a huge impact on the way the energy market operates and how it delivers value to consumers." According to Zhu Xi, under this new model, the energy companies themselves may not necessarily Be replaced, but their business model will be forced to adapt to the new economy.

In other words, the peer-to-peer market will link producers and consumers on a common platform, making this extremely opaque market transparent. Without energy companies/brokers, members will also be able to benefit from direct contact with each other.

"The blockchain is not a savage process for us to do this technology, but because the rule problem cannot be solved. It is the technological research and development that is carried out under such an era background. Is this technology used to solve the problem next year? Do you not know that there may be new technologies and better calculations in the next year, but our original intention is not to change, that is, to design a technical framework that meets the social governance structure to solve the data exchange and business collaboration problems of the energy Internet. " Zhu Xi finally said.

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