Mitsubishi and Japanese university offer peer-to-peer trading alternative to FIT payments

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Japanese giant Mitsubishi and the Tokyo Institute of Technology have developed a blockchain-based system for peer-to-peer energy trading which offers an alternative income stream to solar households now the nation's feed-in tariff (FIT) incentive program has ended.

The Mitsubishi Electric Corp unit of the Japanese conglomerate and the national research university have announced the development of the system, which will be evaluated from April.

A press release issued by the two institutions yesterday revealed Mitsubishi developed the energy trading platform and Tokyo Tech the blockchain and clearing algorithm in a system which enables users to state and match trading goals without the vast banks of computing power required for the sort of blockchain set-ups used in cryptocurrency mining.

Prosumer households in Japan – capable of generating as well as consuming electricity – need a new source of revenue for any excess power they generate now new installations no longer qualify for FIT payments.

With only retail power companies allowed to sell electricity in Japan, peer-to-peer trading systems operated under the management of such entities are being tested, according to the press release.

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