Russia is piloting a solution for the automation of electricity metering with Blockchain Technology. The project implemented in the Kaliningrad and Sverdlovsk regions is recording electric power consumption.
Waves Enterprise developed the project, and it is part of final prototypes in a pilot project launched by Rosseti, a major power grid Russian company. In a press statement, Rosseti indicated it plans to entirely remove opportunities for manipulating data in the electricity market, including when measuring electricity use and making payments.
At the moment, the company is driving a three-stage project directed at
gradually introducing automation on a national scale. The project’s first stage has already ended.
The secondary stage, according to Waves, involves all consumers in the pilot regions and, in the third stage, the system will scale up across Rossetti’s entire area of operation. It was implemented in the Kaliningrad and Sverdlovsk regions voluntarily.
Pilot Evaluation Stage
The pilot “Assessment of the application of Blockchain technology in the retail electricity market,” was launched to examine and analyse alternatives for using Blockchain systems for interaction between electricity manufacturers, suppliers and end-users. The principal purpose of creating and testing a Blockchain-based system is exploring
the possibilities for achieving compatibility and immutability of data for every participant in the electricity market.
The statement noted that the current system of interaction and information exchange between electricity generators, grid and sales companies, as well as consumers, lacks clarity and trust between participants. The answer is directly integrated with electricity metres as well as with a bank.
Waves Enterprise has Alfa Bank as a partner in this innovative initiative, which organises the payment chain from the end-user to the electricity manufacturer, the release communicated. Electricity consumption data for each household is transferred directly from the metre to the Blockchain and displayed in the app.
Hence, a consumer can monitor their electricity consumption in real-time. Moreover, the app is tasked to analyse energy consumption patterns and could, for instance, suggest that a user switches to a more economical plan.
Igor Kuzmichev, Business Development Director for Waves Enterprise, explained:
“Over a short time, our team developed a fully functional system with participants’ accounts and a mobile app for users. We implemented integration with automated electricity metering systems in Kaliningrad and Sverdlovsk regions for 400 power consumers (individual houses and apartments), and created smart contracts for calculating delivered electricity, billing and dividing consumers’ payments between grid and sales companies,”
Igor further explained that Customers pay for electricity by immutable and consistent data recorded to the Blockchain. Then, a smart contract automatically splits the payment, with the sales and grid companies each receiving their corresponding shares.
“We believe Waves Enterprise’s participation in this project is important
because a national platform should participate in the development of a national programme. It’s vital for the developer to be located in Russia and to be able to respond to issues and challenges that exist within the country,” Denis Dodon, Director of Alfa Bank’s Center for Innovation Development, said.
Sergei Semerikov, Head of Projets at Rosseti remarked that as a result of the first assessment stage of the project, they formulated requirements for an interactive system for electricity retail market participants, based on Blockchain technology.
“We want to see a system of this kind,” Semerikov related. “We believe that the system should be based on a private blockchain and a local platform, complying with requirements for data protection and cryptography.”