Promoting regulatory compliance and transparency in the energy industry can get a boost with the incorporation of blockchain.
FREMONT, CA: A careful look at today’s energy companies throws up many opportunities for the application of modern technologies. Choosing the right set of technologies can empower energy companies to proceed quickly through the transformational phase and arrive at intelligent, efficient, and advanced capabilities that contribute to regulatory compliance. One technology that seems to carry a lot of potential in the context of optimizing regulatory compliance in energy companies is that of blockchain. The suitability of blockchain in the boosting regulatory compliance for the energy industry is highlighted further when one considers the following prospects.
• Facilitating Communications with Regulators
Blockchain can be used by energy companies to share information with regulators. In order to prove compliance, energy companies are expected to accumulate and share huge chunks of data that regulators analyze. When this data is shared through blockchain, the process becomes convenient. In addition to reducing the burden of reporting, blockchain, being immutable, ensures that the sensitive data that companies share does not fall into the wrong hands. Thus, blockchain can help energy companies manage compliance and regulatory reporting.
• Comprehensive and Connected Supply Chains
A blockchain platform can enable the highly dispersed energy industry operations to become unified. The processes in any energy company are spread out and involve several players. This often results in inefficiencies and a lack of collaborations. With blockchain, a unified view of the entire energy supply chain can become a reality and help foster efficient compliance management across numerous interlinked supply chains.
• Secure and Transparent Transactions
Executing transactions through digital ledgers is highly advantageous. For energy companies, such capabilities mean that energy transactions can become instantaneous and secure. Also, since the transaction details are stored at a single location, and there is no interference of intermediaries, the need for reconciliation is also eliminated. Peer-to-peer energy transfers can be a major beneficiary of blockchain-based transactions. All of these result in improved regulatory performance.
As energy companies navigate through disruptive technological interventions, evaluating and adopting blockchain can prove to be a good move towards compliant operations.
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