Enerchain 1.0 is live!

Today, on May 20, 2019, Enerchain 1.0 finally has been released for live trading. Enerchain is the first blockchain-based distributed trading infrastructure that enables OTC energy trading in power and gas products such as standardised spot and forward contracts. In addition, many other energy product types that can be defined by the market participants themselves.

The Enerchain proof-of-concept started in May 2017 together with 44 leading European energy trading companies. Since then, PONTON has performed several tests to improve the trading process and secured the blockchain infrastructure against potential cyber-attacks.

Enerchain’s underlying blockchain framework (WRMHL) is one of the fastest blockchain environments: Achieving a block time of maximum one second and an average end-to-end transaction latency of less than a second, the system is particularly well suited for trading processes that require fast data synchronisation across participants.

It is expected that energy market participants will begin using Enerchain in the coming months in order to take advantage of Enerchain’s low fees and to trade bespoke products such as load curves, certificates, flexibility etc. Those products are inefficient to trade elsewhere. With a flat fee of 500 Euro per month, also bilateral trading of high-volume forward products is highly attractive. Find out more about Enerchain features here: https://ponton.de/downloads/enerchain/Enerchain1.0/HighLevelFeatureDescription.pdf.

When the trend continues that European energy markets become more decentralised, over time Enerchain could become the leading trading infrastructure for emerging markets. Enerchain has already proven today that it supports the trading of energy products at different scales: Local trading within energy communities, trading of flexibility within distribution grids, and wholesale trading with delivery at the level of balancing zones.

Enerchain’s mission is to reduce entrance barriers for new participants, level the playing field in terms of transaction speed, and give participants direct access to market data generated by themselves. 

Michael Merz, Managing Director of PONTON says: “There are only few viable blockchain business cases, but those where a third-party role is replaced by a distributed infrastructure are more than promising. Enerchain is only the beginning of decentralised trading in many industries and we are proud to be its creator.”

Enerchain Website: www.enerchain.com.

WRMHL Website: wrmhl.ponton.de.  

PONTON has started a video production on blockchain technology with a focus on B2B integration. the first videos are in German language and cover blockchain technology in general. Over the coming weeks we will produce further explainers on various topics in the "Blockchain and Energy" space and also in English language.

 

Videos in German: https://www.youtube.com/channel/UC-exPRbBPtAxJNg4Bx_H80g 

Videos in English: https://blockchain-b2b-book.com/english-blockchain-videos

 

Moreover, Michael has written a book on blockchain technology "Blockchain for B2B Integration" (in German: "Blockchain im B2B-Einsatz"), to appear in German in December 2018, the English edition will appear early 2019. Stay tuned for more details!

German edition (availble since January 2019), see also: https://www.amazon.de/Blockchain-B2B-Einsatz-Technologien-Anwendungen-Projekte/dp/3982056012

Over 40 energy trading organisation participated in the Enerchain PoC between June 2017 and March 2018. The goal was to develop a distributed trading platform for power and gas in Europe.

Apart from various live trades that were presented in public, several more were executed bilaterally between market participants over the blockchain platform. 

Results and lessons learned were compliled in the Key Insights Report: https://www.ponton.de/downloads/enerchain/EnerchainKeyInsights_2018-03-29_final.pdf

Next project steps are

  • Form an Enerchain legal entity that represents the consortium and facilitates decision making / governance processes
  • Agree on a set of contracts among project participants and with service providers
  • Extend the Enerchain trading software for third parties that use the Enerchain API for the provision of add-on services such as trading front-ends, optiminsation functions, capacity trading etc.
  • PONTON's WRMHL Framework is extended for use in further blockchain-based systems that require coordination of distributed applications

It is expected that these steps are reached by Q3 2018.

In February 2017, we held our first Enerchain workshop in Berlin. Back then, a group of forward-thinking representatives of European utilities met in Berlin to form their vision of Blockchain applications in energy trading. That first workshop is now eight months in the past – a lot has happened in such short time. Blockchain development seems to run at higher speeds than regular business. Here is an update, see also the latest press release from Sept 29th.

Expectations in Berlin were high and wide-ranging: lower transaction cost, P2P integration directly between market participants, reduced entry barriers for smaller market participants, a seamless process including not only trade execution but instantaneous settlement of transactions as well. Given these diverse goals, holding a critical mass of participants together seemed a challenge of a higher order.

Press Release: European Energy Trading Firms test peer-to-peer Trading over the Blockchain

Hamburg, May 29, 2017

23 [as of November 2017: 39] 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.