Centrica and LO3 Energy have announced a new trial of blockchain technology as part of a local energy market in Cornwall.

Blockchain can provide a secure platform for consumers to buy and sell power. The project will see the technology used in Centrica’s local market trial in Cornwall, which has 200 business and residential participants, to explore how new approaches could disrupt the traditional energy model.

The Cornwall market has been established by Centrica Business Solutions to test the role of distributed generation and storage in supporting local grid flexibility in the south west of England. The blockchain trial will take this a step further, testing a range of energy transactions including multi-party peer to peer trading  using LO3’s new Exergy platform.

Centrica is also working with LO3 on a trial in North America to deliver a micro-hedging market for business customers. Run by the company’s North America Business unit, Direct Energy Business, the trial aims to cut costs and improve efficiency for  businesses in Texas through a business-to-business energy network.

Unlike the traditional model where businesses manage their electricity procurement through fixed price contracts, or power purchase agreements, Direct Energy Business will use LO3’s platform to offer large commercial and industrial companies the opportunity to place their own orders for customised power hedges that are then matched with the best offer in a competitive system.