Endesa and Gas Natural Fenosa have become the first companies on the Iberian Peninsula to buy and sell energy using blockchain technology. More specifically, the companies completed a deal for a total of 5.95 GWh of natural gas.
The transaction was made possible by the Enerchain joint initiative, which currently involves 39 major European energy companies including Endesa’s parent company Enel, and that will promote the trade of energy through a decentralised blockchain-based platform developed by German software company Ponton. Demo trades were performed over the past year, and today’s deal marks the first real trade transaction on the platform, carried out at the E-World trade fair in Essen (Germany).
Javier Alonso, Director of Trading at Endesa, said: “Through this project, we are leveraging on cutting-edge solutions to build a trading platform that can lower energy supply costs, while creating value for customers, in line with the Enel Group’s Open Innovation philosophy”.
"With this transaction, Gas Natural Fenosa shows its commitment to innovation," said David Guerra, Director of Trading at Gas Natural Fenosa, and Susana Calvo, the company’s deputy director of Emerging Businesses. "Blockchain technology, though it still has to overcome some relevant challenges, has the potential to transform many areas in which energy companies are active, with major benefits for our customers, both in terms of price and services."
The Enerchain project was launched in May 2017 and is the first decentralised energy trading platform involving physical delivery. The platform can be used to trade gas and electricity for any area in Europe and any supply period, from the very short-term to annual baseload transactions.
Through the blockchain technology, market participants use their own systems to validate and certify transactions, thus reducing intermediary costs and boosting the efficiency of the value chain, while ensuring transactions are performed securely and quickly.
Once a transaction is approved, the block that registered it is added to a chain comprising each completed deal, while it is stored across all the nodes of the network.
Innovation at Endesa
As part of the Enel Group’s Open Power philosophy, Endesa supports an open model of innovation to tackle the challenges faced in its businesses, a collaborative innovation model which brings together suppliers, technology and research centres, universities and startups, among others. The goal is to build a new culture of innovation that leads to creative solutions to transform the current energy model.
Under this model, Endesa aims to combine its know-how with external talent to come up with solutions in the areas of distributed energy, self-consumption, small-scale renewables, energy storage, e-mobility, energy efficiency, home automation, customer experience, digital customer relation, and big data, among others.
Gas Natural Fenosa
Gas Natural Fenosa is a leading multinational company in the energy sector, a pioneer in gas and electricity integration, operating in over 30 countries. The group provides services to nearly 22 million customers on five continents, and has an installed power generation capacity of 15.5 GW and a diversified mix of technologies.
This initiative underlines Gas Natural Fenosa’s staunch commitment to innovation and technology applied to the energy sector. It stands alongside other projects such as the recently unveiled DirectLink, the first floating LNG ship-to-shore transfer system in the world, as well as projects associated with renewable gas, among others.