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Cake day: May 14th, 2024

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  • The blockchain solves one problem: trust. Do we really have that problem in normal energy markets?

    People who buy and sell energy would need to trust each other and the middle man in between them. If they have trust issues, using a blockchain could make sense. As far as I can tell, the current system doesn’t suffer from a lack of trust, so what would the blockchain do in this case?

    Edit: Turns out, it would be more accurate to say that it redistributes trust away from a central authority… well at least in most cases it does. There are still situations when even a blockchain has a central authority you need to trust. It’s not guaranteed to solve all trust issues, but in the best case scenario it can solve some of them.









  • As a part of grid balancing, we are already doing that to some extent. For the most part, the idea is that you can increase or decrease the load if you see the frequency of the grid beginning to drift off target. These types of frequency containment reserves can usually react very quickly, which means that most industrial processes don’t qualify.

    However, since the duck curve is fairly predictable, we could (and should) extend this idea to slower processes too, such as the ones you mentioned. I don’t know if that sort of power reserve is actually being implemented, but it certainly would make a lot of sense.

    It’s just that most industries prefer to operate 24/7. Having your reverse osmosis, electorlysis, electrowinning, arc furnace etc. running only during sunny hours is nice for the employees but bad for business. The investors of such factories prefer to see profits sooner rather than later, and restricting operating hours isn’t helping.

    Cheaper electricity would obviously result in lower operating expenses, so I can definitely see some potential in this idea. You would just need to find some environmentally minded investors. They would also need to tolerate the risk that comes with a fluctuating power supply, which could be a tall order.

    If the fluctuations of the local energy market are dominated by solar power, that means more work during the day and none during the night. If there’s lots of wind in the mix too, that could mean lots of night shifts during windy seasons and none during others, which isn’t great for the employees.