Australian blockchain startup Power Ledger has entered into a partnership with Malaysia’s Sustainable Energy Development Authority (SEDA) to trial its peer to peer energy trading platform.

Malaysia pilots Blockchain-based platform

This is Malaysia’s first pilot test of a peer-to-peer energy trading platform and is aimed at stimulating the local market for solar rooftop panels.

Power Ledger’s tech will enable the sale of surplus energy generated by solar photovoltaic panels.

The experiment in Malaysia is an important milestone as the country plans to implement new regulations in the energy market.

The country aims to achieve a renewable energy target of 20% by 2025 by leveraging rooftop solar panels.

“Power Ledger wants to work with regulators and electricity retailers to make energy markets more efficient,” said Power Ledger co-founder and chairman Dr Jemma Green.

“The trial with SEDA provides a real opportunity to tailor our platform to suit the needs of the Malaysian energy market.”

Malaysia’s SEDA plays a critical role in moving the country’s energy generation to sustainable standards.

The authority works closely with existing grid operators in the country like Tenaga Nasional and TNB, making the collaboration with Power Ledger’s platform much easier.

P2P platform to improve renewable energy market

By using the P2P energy trading platform, consumers will be able to either sell their excess energy or buy from other peers.

All participating consumers in the pilot will still have the option to buy electricity from retail providers, enabling price competition that should benefit end-users.

The pilot project will be carried out in two phases over the course of eight months.

The first phase will run for two months and will be focused on testing the technical operability while the second phase, which will last for six months, will focus on financial transaction settlement.

Currently, only 2% of the electricity in Malaysia comes from renewable sources.

SEDA believes Power Ledger’s platform can boost the solar panel market and the deployment of distributed energy resources, in order to achieve its 20% target.

Furthermore, the new model of P2P energy trading will make the grid data relevant again and allow for better insights into consumer usage patterns according to SEDA CEO Dr. Sanjayan Velautham.

“Malaysia has more than four million buildings with rooftop solar potential in Peninsular Malaysia,” said Velautham.

“The trial with Power Ledger will give SEDA better insights into consumer preferences and price model testing.”

Blockchain tech enabling energy trading

Power Ledger’s technology is the first P2P blockchain-based energy trading platform in the South East Asian region with other projects with energy retailers being developed in Thailand and Japan as well as on-going trials in the United States, Austria, and Australia.

Power Ledger was launched in 2016 and managed to raise AU$34 million [US$23 million] in 2017 and was also the recipient of an $8 million grant from the Australian Government.

With the evolution of the energy market towards renewable sources and a demand for efficient energy usage, the blockchain technology seems to be a good fit for P2P energy trading between consumers.

Speaking about the partnership, Velautham stated: “SEDA’s partnership with Power Ledger is a great opportunity to testbed energy trading among prosumers and consumers using blockchain technology and understand surplus energy trading in Malaysia’s energy marketplace.”