Abstract
The power system reforms worldwide have commoditized electric energy and thus the electricity market has been developed. With this, trading of electric energy takes place in various time-domain like the day ahead, real-time, etc. These transactions take place through over the counter (OTC) or Power Exchange (Px) which provide to the market participants the required platform and payment security. The transactions on OTC and Px requires a third-party platform and guarantee for contract & settlement, there incurs overhead cost. Since electric energy is a fungible commodity, it can be transacted very well with the old system like barter. Energy Banking is one such mechanism wherein one utility supplies the energy to another utility that need it more and in leisure, the energy can then be provided back. The requisite security of the transactions can be provided by blockchain technology. Energy banking is presently being done only on MW quantum basis with no price tag despite the cost being dependent on the demand-supply ratio. To ensure energy banking transactions in real-time and free from the perils of financial settlements, this article suggests the use of the Peer-to-Peer (P2P) model of blockchain technology for executing Smart Contracts mutually agreed upon by both parties and avoiding third parties overhead costs. Doi: 10.28991/HIJ-2021-02-03-03 Full Text: PDF
Highlights
Energy Banking in the Electricity sector is still in a nascent stage despite being an age-old concept
We are proposing that a certain quantity of iPowercoins are required to be deposited as EMD (Earnest Money Deposit) [9] by the bidders
Energy banking is synonymous with barter systems and Blockchain is a window to the future
Summary
Energy Banking in the Electricity sector is still in a nascent stage despite being an age-old concept. The merits of this mechanism are not being utilized to the fullest rather the orthodox method is making this obsolete. In India, due to geographical and seasonal diversity, the power requirement varies heavily between states. In India, there are two prevalent methods of energy banking, firstly through mutual consent and secondly through competitive bidding.
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