European energy companies E. ON and ENEL have traded electricity via a blockchain-based marketplace.

The decentralised energy wholesale is based on a peer-to-peer network developed by energy IT company Ponton. The system was tested in 2016 at the E. ON Future Lab.

In May 2017, the partners founded "Enerchain" initiative together with other European energy companies. At the time, 23 European energy trading firms joined the project and Ponton was in discussion with further interested companies.

"The Enerchain initiative is a good example of open, cross-industry collaboration. We all believe in the enormous potential that Blockchain technology has for the new energy world and especially for our customers,” Matthew Timms, Chief Digital Officer of E. ON, said.

According to the official release, the project has now grown to 33 members who aim to develop a decentralised European marketplace for energy trading.

“Today's first contract was a significant milestone on the way to achieving this goal,” it said.

Using blockchain technology, trading partners would be able to conduct deals directly with each other without the need for a central intermediary. This, in turn, will reduce the cost of electricity procurement, benefitting energy customers in the future.