European Energy Companies to Test Peer-to-Peer Trading Over The Blockchain

Twenty three European energy trading firms have joined forces in order to conduct peer-to-peer trading in the wholesale energy market using innovative Blockchain technology. Trading will take place on an enhanced Enerchain framework a Blockchain based application developed by PONTON that has already been used to execute the first European energy trade over the Blockchain at last year’s EMART conference in Amsterdam.

The Enerchain software allows trading organisations, using encryption technology, to anonymously send orders to a decentralised orderbook which can be hit by other trading organisations. All this is done “peer-to-peer” without a central marketplace operated by a third party.

During the proof of concept participants will get significant exposure to the Blockchain technology and find out whether a decentralised solution can support the trading volumes and transactional speed known from existing markets. Applying Blockchain technology in energy markets promises more efficient operational processes and reduced transaction cost.

Enerchain is powered by Tendermint, the leading open source Blockchain engine. Partner and provider of the trading screen technology in the project is pdv Financial Software GmbH, a sister company of PONTON, which develops innovative platforms for trading, position keeping and risk management as well as exchange platforms for various types of securities across asset classes, associated derivatives and treasury products.

PONTON is in discussion with further interested companies that consider joining the initiative and anticipates that the number of participants will be enlarged.

 “Total is focused on ensuring high security standards for the Gas and Power Trading processes. If successful, this initiative with Enerchain, could enable a leap forward for the whole trade lifecycle. For Total, it offers the opportunity to improve our understanding of the Blockchain technology and its potential applications to support internal processes,” stated Philippe Chauvain , Vice President Risk Control and IT – Total Gas & Power Limited.

“We are working with PONTON to provide the best scalable consensus middleware (Tendermint) so that PONTON can rapidly innovate in the energy Blockchain vertical. We’re excited to see PONTON develop on our platform and contribute to the Tendermint ecosystem,” said Jae Kwon, Founder and CEO Tendermint.

Michael Merz, managing director of PONTON added:

“Blockchain technology is a new way to create disruptive software applications and business models. After having experienced increasing marketing buzz from the FinTech and energy sectors, PONTON has decided to actually implement an own Blockchain stack on top of the Tendermint software. The project practically shows the power of the Blockchain by creating a marketplace that does not require a physically centralised platform. Enerchaindemonstrates what can be expected for the future in related areas of energy trading: P2P wholesale trading, flexibility trading in the regional grid, and synchronising grid management processes between TSOs and DSOs“.

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