The U.S. Department of Energy’s (DOE) Office of Science has awarded a $1.05 million grant to energy company ComEd, the University of Denver, Virginia Tech and software specialist BEM Controls to create an energy internet that is intended to enhance building energy management.

The grant will fund work to commercialize a blockchain-based transactive energy platform developed by BEM Controls.

Blockchains use multiple servers that operate like decentralized record-keeping and verification systems. They are seen by the project participants as a possible solution for energy companies that are bringing more distributed energy resources (DER) onto their systems and creating marketplaces offering an array of internet of things (IoT) devices and innovative energy services.

In July, Virginia-based BEM Controls was awarded a $1.05 million Phase II Small Business Innovation Research grant from the DOE to develop the transactive energy platform using blockchain and BEM Controls’ WiseBldg building energy management system.

The energy internet platform is intended to integrate with commercial and residential buildings using WiseBldg software. It is expected to provide utilities, distribution system operators, building owners and DER owners with the ability to conduct peer-to-peer transactions of both electricity generation (i.e, kilowatt hours) and demand response capacity (i.e., negawatts) at scale.

Utilities will are expected to be able to improve the efficacy and security of demand response initiatives and grid infrastructure through real-time monitoring and control of building level loads.

The BEM Controls' software incorporates time-based energy management and control of interior spaces in buildings to achieve greater energy efficiency. ComEd will use its Grid of the Future Lab to demonstrate the functionality of the system, which will be developed over three years.

In March 2018, Illinois regulators approved ComEd’s plan to build a utility-scale microgrid in a neighborhood on the south side of Chicago. The project received more than $5 million in grant funding from the DOE and is intended to enable the study of how microgrids support integrating energy sources onto the grid and increase grid security to keep power flowing during extreme weather or a catastrophic event.

Industry experts say that interactive energy platforms are gaining attention for their potential to manage volatility caused by the growth of DER.

In the United States, the Solar Energy Industries Association anticipates that solar photovoltaic (PV) capacity will double in the next five years as will deployments of other distributed energy technologies such as microgrids, battery storage and electric vehicles. Such energy systems coupled with low-cost smart-building devices are accelerating the digital transformation of utility business models.