IBM said Tuesday it is joining forces with TenneT, sonnen and Vandebron to develop blockchain technology for managing the electricity grid in the Netherlands and Germany.

This innovative technology is the next step in enabling decentralized flexible energy sources to play a role in the management of the electric grid, said IBM.

As part of a broader Digital Transformation Program, TenneT said it is exploring the use of a permissioned blockchain network that uses Hyperledger Fabric to integrate flexible capacity supplied by electric cars and household batteries into the electrical grid.

“These pilot projects are part of TenneT’s broader strategy of preparing the electricity system to accommodate the growing volume of renewable energy,” said TenneT CEO Mel Kroon.

TenneT will be testing this new concept in two pilot projects in the Netherlands and Germany.

TenneT is a leading European electricity Transmission System Operator (TSO) with its main activities in the Netherlands and Germany.