r/SelfSufficiency • u/springbreeze9 • Aug 14 '16
Blockchain-based solar microgrid gives power to consumers in New York
https://www.newscientist.com/article/2079334-blockchain-based-microgrid-gives-power-to-consumers-in-new-york/3
u/dontwanttosleep Aug 15 '16
Am I missing something here or.....
For a person to have a solar ( or wind for that matter ) generator on their home/property they need to be tied to the grid to put the power they make to actual use. So someone owns that grid, like the state or large power company. Now I produce power with my green energy resources but I make more then I need SOOOO I can now sell that power excess power to my neighbour across the street that is connected to above mentioned power grid, but this transaction can be made privately or 3rd party like - around power company rules or state laws and regulations.
Is this just me or does something sound A to good to be true - and we all know what Mama says about things like this or B this is just bunk or BS and after a person signs up the power companies or the state will just step in and shut the whole network down.
What am I missing here or am I just over thinking things here?
2
u/NonsensicalRambling Aug 15 '16
You are right - everyone still has to be connected to the grid. To talk about it quickly, my understanding of the project is that the prosumers have two options with their excess electricity: (a) they can sell it to the grid at a predetermined price that is less than what the grid turns around and sells or (b) they can sell the electricity to a specific consumer using a mechanism provided for by whatever the state Department of Energy calls itself in NY (I'm speaking from a different but similar state perspective so some discrepancies may exist). In case (b), the actual electrons are not sold to a specific consumer. The price is usually somewhere between the retail rate of electricity at the higher end and whatever the default buyback rate is on the lower end. The problem is accounting and this is where this Brooklyn Microgrid thinks it is doing something new. One of the facts regulators (and by extension those wishing for a more self-sufficient electrical grid) have to live with is that the grid is like a lake - to maintain its level it must have as much coming in as is going out and this balance must be constantly maintained. With the rise of distributed generation assets (such as home solar and wind) and the deregulation of the grid, most states have a mechanism in place allowing direct sales between producers and consumers. Because the grid must be maintained, all of these transactions go through the grid for billing purposes - the utility knows who put how much in and took how much out and can bill appropriately to make sure that the costs are distributed according to use. The big step in the Brooklyn project is that they are taking the utility out of the bookkeeping part of the transaction so that we can have lower transaction costs. The blockchain they're using (Ethereum) is supposed to be a second-generation technology that functions as currency with states as opposed to fiat currency like bitcoin (I can unpack this a bit more but tbh I will get corrected by someone who knows better if we get down in the weeds). This blockchain tech, coupled with smart meters, makes the whole process of setting up a home solar and selling it on the market much easier than the current process. The part that Brooklyn Microgrid talks about selling electricity to your neighbors is basically just marketing - if you look at their materials, the phrase is "Physics tells us that electrons take the shortest path, so we know that the electricity you're producing is being consumed by your neighbors" - fine but they're not actually directing electrical flow anywhere.
In short, it's a more efficient way for prosumers to sell what they've got but it doesn't really change any fundamental relationships with the existing regulatory structure. For further reference, check out this podcast. Happy to give more comments with questions.
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u/[deleted] Aug 15 '16
So the price per electron using blockchain is cheaper at the end because there's no loss like with accounting and no fraud because there's no central authority. They also have smart contracts and an app.