Leading global industrial engineering and manufacturing conglomerate Siemens has invested into a New York-based startup named LO3 Energy.
One key initiative that LO3 Energy is currently undertaking is the development of blockchain-based local energy marketplaces – technology that is set to revolutionise the way in which consumers buy and sell energy.
“Siemens’ investment in LO3 represents our acknowledgement of the future potential of blockchain technology as an enabler of local energy market places,” says Ralf Christian, CEO Siemens Energy Management. “Siemens will further support LO3 with its experience in grid management, data analytics and complementary technology portfolio facilitating the integration of blockchain into state-of-the-art power grids.”
Such technology has already been utilised when the two companies collaborated on the Brooklyn Microgrid, beginning 2015. It is a self-sufficient microgrid that plays an important role in an energy market that is growing as a result of distributed energy systems.
“Over the years, our partnership with Siemens was integral to the success in the Brooklyn Microgrid, and will continue to be for years to come,” said Lawrence Orsini, CEO of LO3 Energy. “Siemens commitment to transactive energy on the blockchain is a vote of confidence for our approach to developing microgrid communities and grid-edge services across the globe.”
The microgrid allows neighbours to buy and sell energy within local communities, creating a local energy market place, now having over 60 participants.
The investment, of which the figures are yet to be disclosed, will further expand the partnership between the two companies and development of this technology.