The TransActive Grid, a project involving a joint venture between LO3 Energy and Consensus Systems is being developed in Brooklyn, New York.
The startup aims to disrupt local energy markets with the introduction of community microgrids where individuals can buy and sell renewable energy from residential rooftop solar installations.
The first iteration of the Brooklyn Microgrid connects houses with solar panels with other nearby houses that want to buy renewable energy, which makes this distributed energy project a truly hyperlocal venture.
The TransActive Grid, which is comprised of both software and hardware, will enable its members to securely engage in buying and selling energy from each other, using a combination of smart contracts and the block chain.
TAG will connect buildings in the microgrid "via a constantly updated cryptographically secure list" that is stored on devices at each location and to use software called Ethereum to monitor the energy in and energy out of each point of the network.
Instead of being locked in to buying (and/or selling) electricity through a large utility company, TransActive Grid (TAG) will allow for greater choice for consumers, and can help individuals become local energy providers by selling their excess rooftop solar electricity production to other local residents or businesses.
Joseph Lubin, TAG Co-founder “By buying energy locally, rather than from a national entity, the money goes back into the pockets of people in the community. We’ll install the transactive platform which pretty much runs itself, whereby energy is automatically priced based on things consumers care about. It’s pretty hands off – as we think that will suit consumers best - but in future we plan to enable people to set preferences to maximise savings, do good in the community, and potentially sell energy cheaper to lower-income residents."