Business Area Markets, the energy trading branch of Vattenfall, a leading Swedish power company wholly owned by the government, is testing potential applications of blockchain.
Announced this week, the firm has joined forces with 22 other European energy trading firms in an effort to build a peer-to-peer trading system in the wholesale energy market using the technology.
The trial, according to statements from Vattenfall, is being hosted by Ponton, a company based in Hamburg whose encrypted software allows trading organizations to anonymously send orders to a decentralized order book.
The proof-of-concept will run until the end of 2017, and if successful, participants intend to start live trading on the platform.
Vattenfall and other trading firms expect to be able to buy and sell energy without going through a centralized energy marketplace, thereby saving money. Today, BA Markets trades either via energy exchanges or directly with counterparts through brokers and broker platforms.
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