Cryptocurrencies & Platforms

3 Startups Leveraging Blockchain for Renewable Energy

Bitcoin and cryptocurrencies are still the most popular application of blockchain technology; yet, beyond cryptocurrencies, blockchain is the perfect solution for decentralizing systems and bringing trust into “trustless” environments.

Of course, the cryptocurrency market is down by more than 53% in the year-to-date period. Yet, the weakness in cryptocurrencies doesn’t invalidate the fact that blockchain technology is potentially the most disruptive force for the next century.

Unfortunately, out of more than 2,000 ICO projects that have launched, many have failed and many more are on the path to failing. Many ICO scams are nothing more than exaggerated promises in whitepapers sold on beautiful landing pages and promoted with the right dash of hype that triggers speculation. Hence, it is understandable that investors are somewhat skeptical about investing in Blockchain powered projects.

Thankfully, investors interested in blockchain technology can find several decent projects making their debuts in the renewable energy space. This piece provides insights into 3 interesting startups that are leveraging blockchain technology to solve some of the systemic problems in the energy industry globally.

ElonCity

ElonCity is leveraging blockchain technology to decentralize the power infrastructure in its markets into millions of localized microgrids that can produce energy 24/7, in direct competition to traditional utility companies.

ElonCity wants to solve the problems associated with centralized power grids – adaptability and resilience, safety and reliability, unaffordable cost, and environmental and public health concerns among others.

The company’s solution is a multifaceted solution that employs decentralized renewable energy resources to eradicate barriers to attain safe, healthy, vibrant and equitable energy future. From a technical standpoint, the startup is introducing a blockchain and AI algorithm trade system that makes energy transparent with fair prices referenced from real-time market data.

It also has a smart energy storage system layered on IoT to balance demand with supply of energy.

While many blockchain projects are built on existing blockchains such as Ethereum, the ElonCIty Token Protocol (ECTP) uses a Proof-of-Stored Power (PoSP) as a new mining scheme designed to make energy an investment grade financial asset.

In addition, the ElonCity Token (ECT) is designed to be a utility token that will facilitate energy exchange on its ecosystem microgrids — firstly, as a means of exchange when prosumers sell their excess energy and secondly, as a store of value backed by the value of electricity generated and stored in the microgrid.

WePower

WePower is leveraging blockchain technology to create an enabling environment for developers to raise funds upfront for renewable energy projects by allowing them to sell upcoming energy production upfront using smart energy contracts.

Renewable energy projects require huge capital expenditures that most developers lack for deploying projects at scale. Unfortunately, the current structure of the capital markets is not designed to support renewable energy projects, especially considering the fact that the industry is at odds with big oil.

Secondly, funds available from donor organizations tend to be limited in their availability, and they are also capped by geography.

WePower believes that blockchain technology can be instrumental in standardizing energy contracts for flexibility in power purchase agreements. Blockchain also provides a layer of transparency that is currently lacking in energy trade accounting. The cryptocurrency market that blockchain enables also provides a simplified solution to crowdfund renewable energy projects by developers.

Lastly, the blockchain provides liquidity in the energy industry by making smart energy contracts tradeable within the platform.

WePower’s WPR token is a utility token that holders can use to get priority access to auctions of renewable energy generation facility projects on the WePower platform. The holders of WRP token can buy energy less than or equal to the value of the WPR tokens they hold before such projects can be sold to the public.

LO3 Energy

LO3 Energy is trying to reshape the future of the energy industry with its blockchain-powered solution for generating, storing, buying, selling, and using energy at the local level.

The key components of LO3 Energy’s project include its vlockchain infrastructure that verifies transactions, a smart meter technology that measures energy production, an API that makes collaboration possible with other stakeholders, and the grid infrastructure that makes it possible to transmit and trade energy locally.

LO3 already has an operational Exergy platform built on decades of expertise in energy efficient program to deliver structured finance that enables people to autonomously manage energy transactions in real-time in the local marketplaces. The company’s pilot project, the Brooklyn Microgrid in New York enables a neighborhood of about 130 homes (some with solar PVs and others without PVs) to engage in peer-to-peer trading of electricity.

 

Editorial Staff

The Invest In Blockchain team is made up of talented writers and analysts from around the world.

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