The National Renewable Energy Laboratory (NREL), a U.S. federal laboratory for renewable energy and energy-efficient technologies, is investigating the possibilities of utilizing blockchain for renewable energy.

The intersection of solar energy and other renewable energy sources can be developed. As users share energy during peak moments rather than sourcing from the power grid, they demand to trust the data about the volume of energy transferred. They also require a less expensive medium of payment—blockchain satisfies both requirements.

NREL will operate with energy utility, Exelon, and the Energy Web Foundation (EWF) to research blockchain for community-based energy markets. The project will concentrate on improving coordination between utilities and customers. The NREL is investigating ways to connect distributed energy resources (DERs) such as solar panels to local distribution networks. This is done by utilizing digital identity and hardware created by NREL’s Energy Systems Integration Facility (ESIF).

Dane Christensen, an NREL engineer, said in a statement: “Distributing grid operational decision-making is revolutionary. It’s like somebody in the 1980s expounding on the economic opportunity of the Internet. Everyone would have laughed at you. That’s kind of what’s happening right now with blockchain applications—the foundational tools for another technology revolution are emerging, and this could be one of them.”

NREL intends to leverage blockchain to build a scalable solution for electricity feeders, which can be customized as wanted. Currently, they are operating a virtual pilot that combines electric vehicles, smart appliances, batteries, and other components, to a blockchain.

Other NREL blockchain energy projects

Two years ago, the NREL created ‘forsee,’ a home energy management system that foretells potential energy consumption in houses. They also tested a distributed energy marketplace utilizing data from forsee. The marketplace enabled them to utilize blockchain smart contracts to buy electricity at lower prices and reconcile payments with digital currency.

The NREL is a member of Blockchain for Optimized Security and Energy Management (BLOSEM), and offers expertise on stimulating blockchain adoption in the energy sector. The BLOSEM project is managed by the National Energy Technology Laboratory and is financed by the Grid Modernization Laboratory Consortium.