how would the SA consumers benefit from the decentralization of the energy market what are 5 benefit
Answers
Answer: hi friend
Explanation:
Energy systems are undergoing rapid changes to accommodate the increasing volumes of embedded renewable generation, such as wind and solar PV. Renewable energy sources (RES) have undergone massive development in recent years, enabled by privatisation, unbundling of the energy sector and boosted by financial incentives and energy policy initiatives. In 2016, 24.6% of the UK gross electricity consumption was generated by RES, mainly from onshore and offshore wind farms and PV solar plants, accounting for 44.9% and 12.5% of the total 35.7 GW installed RES capacity, respectively [1]. RES are variable, difficult to predict and depend on weather conditions, hence raise new challenges in management and operation of electricity systems, as more flexibility measures are required to ensure safe operation and stability [2]. Flexibility measures include the integration of fast-acting supply, demand response and energy storage services [3]. Adding to the transformational change caused by distributed energy resources (DERs) and renewables, energy systems are on the brink of entering the digital era as shown by the massive deployment of smart meters in numerous countries [4]. In the UK alone, 53 million electricity and gas smart meters are planned to be installed by 2020, one for every home and small business [5]. To achieve ambitious emission reduction goals, energy systems will need significant investment. It is estimated that in the EU alone, the transition towards a more sustainable and secure energy system would require an investment of €200 billion per year for generation, network and energy efficiency development [6]. $2 trillion in electricity network upgrades will be required by 2030 in the US [7]. To moderate required investment smart management and control need to be adopted, tasks that are increasingly challenging as energy systems are growing to become more active, decentralised, complex and ‘multi-agent’, with an increasing number of actors and possible actions. Advanced communication and data exchanges between different parts of the power network are to an increasing extent required, making central management and operation more and more challenging. Local distributed control and management techniques are required to accommodate these decentralisation and digitalisation trends [8]. Blockchains or distributed ledger technologies (DLT), were primarily designed to facilitate distributed transactions by removing central management. As a result, blockchains could help addressing the challenges faced by decentralised energy systems.
Blockchains are shared and distributed data structures or ledgers that can securely store digital transactions without using a central point of authority. More importantly, blockchains allow for the automated execution of smart contracts in peer-to-peer (P2P) networks [9]. They can alternatively be seen as databases that permit multiple users to make changes in the ledger simultaneously, which can result in multiple chain versions. Instead of managing the ledger by a single trusted centre, each individual network member holds a copy of the records’ chain and reach an agreement on the valid state of the ledger with consensus. The exact methodology of how consensus is reached is an ongoing area of research and might differ to suit a wide range of application domains. New transactions are linked to previous transactions by cryptography which makes blockchain networks resilient and secure. Every network user can check for themselves if transactions are valid, which provides transparency and trustable, tamper-proof records.
ITHINK IT WILL HELP YOU
Explanation:
With decentralization of the energy market, SA consumers will benefit in the following 5 ways:
1. Consumers will be able to directly buy energy from local, sources of energy
2. They will get rid of monopoly of energy companies
3. They can choose an energy source near their home, so that they can get uninterrupted supply
4. Energy would be cleaner
5. Prices would be cheaper