Fujitsu officially confirmed through a press release dated January 29 that the Japanese IT firm has successfully tested a solution based on blockchain to address faults and negatives in electricity surplus management. The Japanese IT giant collaborated with ENERES (Local power distribution company) and used blockchain in order to increase success rates of power sharing. This process is assessed through a process called Demand Response (DR).
The company explains Demand Response as an arrangement in which electric based utilities and consumers coordinate in order to limit the total amount of electricity consumed during the time of expected peak demand. According to this scheme, the aim is to minimise the consumption of electricity consumption by paying remunerations to consumers who work towards power saving.
By the agreement between the utility companies and consumers, the aim of DR is to anticipate peak demand periods by making sure that surplus power is available for those who need it. With the current running technology, DR is an inefficient mechanism. According to the press release by Fujitsu, ‘Fujitsu has now devised a system in which electricity consumers can efficiently exchange among themselves the electricity surpluses they have produced through their own electricity generation or power savings.’ The release also mentioned that ‘The result was an approximately 40% improvement to the DR success rate.’
As a company, Fujitsu believes that better efficiency will result in more consumer sign-ups for DR. It is not the first time that Fujitsu is venturing into blockchain. Last year in October, the company launched a blockchain based loyalty scheme for the retail sector which was followed by plans for settlement infrastructure for a total of nine banks in Japan.