UK Energy Supplier OVO Acquires Stake in Blockchain Firm

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According to a blog post, Major UK energy firm OVO has invested in blockchain firm Electron through its newly launched technology division, Kaluza.

Kaluza – an intelligent grid technology firm that creates software and hardware products to the energy sector has made an investment in Electron, a London-based energy tech company that uses blockchain tech. The move intends to facilitate the Electron’s deployment of distributed energy trading platforms.

Electron will utilize the proceeds of the investment to build its energy platforms and systems, or its distributed flexibility marketplace. “The development of Electron’s shared asset register will be critical to supporting the growth of Kaluza and deliver on its mission to securely connect all devices to an intelligent zero-carbon grid,” the post describes.

The new investment from OVO is the first since Mitsubishi obtained a 20% stake in the firm. OVO is purportedly the seventh biggest energy supplier in the United Kingdom.

Blockchain has witnessed multiple application in the energy sector worldwide. Prior in March, Thai petroleum refining firm Bangchak Corporation Public Co. Limited (BCP) started testing a blockchain-powered energy trading platform and commercial microgrid. The platform will support the basic electricity requirements of an average BCP fuel station in addition to generating, distributing and storing energy for neighboring shopping mall tenants.

A month ago, Japan’s solar power supplier Kyocera collaborates with LO3 Energy to test blockchain-enabled virtual power plants (VPP) for enhanced energy distribution. The test will enable the firms to assess the feasibility of VPPs that promote low-carbon use without fuels or carbon emissions based on peer-to-peer distributed consensus network.

As per recent research from Infoholic Research LLP, the global blockchain in energy utility market is expected to grow by 60 percent by 2024. The market was evaluated to be $210.4 million in 2018 and is expected to reach $3.4 billion by 2024. Infoholic Research predicts the growth at a compound annual growth rate of 59.4% from 2018 to 2024.