The department of Energy Administration in China is devising new ideas to use blockchain-based energy platforms to trade between self-contained energy networks and that of the state and the nation.
The China Energy Administration is a department under the National Development and Reform Commission (NDRC). The NDRC is said to be responsible for energy conservation and utilization policy formulations. The body helped the CEA form its new idea of looking into and ensuring power and energy ability to small and medium-sized entrepreneurs.
According to the Institute of Electrical and Electronics Engineers (IEEE) reports, the immutable blockchain property might help enable transparent and honest power metering and transaction pieces of evidence.
Insigma Hengtian Software, a Chinese Software company, reported on its contract with the Yunan province, stating the need for a blockchain-driven power trading system. The company revealed the agreement in July 2022, indicating the rising trends of using blockchain platforms for electricity trading.
Additionally, Yunan has enormous reserves of hydroelectric power and hydropower facilities. Before the crypto ban in China, bitcoin miners swamped this province owing to its abundant energy resources and friendly pricing systems.
After one of China's heat waves and drought, the country has lost its power-producing or providing abilities. Of the several countries, Sichuan has undergone a significant power shortage with regular power cuts in recent times. Such power shortages led to power outages in industrial and residential areas. The drought caused all the local reservoirs to dry up, leading to an acute shortage of hydropower.
Evidently, China is looking for better and alternative recovery means.