The Ministry of Science & ICT and the Korea Electric Power Corporation (KEPCO) announced on December 5 that they established a blockchain-based system for neighborhood electricity trading and electric vehicle (EV) charging.
The neighborhood electricity trading is an innovative electric power trading method by which prosumers can sell their surplus power to neighbors via the KEPCO. Houses, stores and buildings consuming and generating electricity at the same time can trade it by the method.
Still, the procedure is not that simple. The KEPCO checks the tradability and benefit in advance and then signs a contract with a duration of just one year only when a prosumer and a consumer agree with each other. The trading cost is included in the electric bill to be paid to the KEPCO.
The blockchain-based electricity trading platform developed this time is to connect prosumers and consumers in an optimal way and in real time and enable immediate trading based on energy points, which can be paid for electricity, returned in cash, and spent at EV charging stations.
“The pilot project is a good example that shows the various advantages of the blockchain technology including its efficiency and disintermediation,” the ministry explained.