Power Ledger just might disrupt energy distribution
Power Ledger is an Australia based blockchain company, which provides distributed renewable energy marketplace. Its main feature is that the electricity is generated from renewable energy resources, which encourages sustainable development. The buying and selling of electricity are peer-to-peer, without the need of any middleman. Also, the market trading of electricity is very transparent and auditable to both consumers and producers.
This idea of peer-to-peer electricity trading was germinated by Dr Jemma Green (the co-founder of Power Ledger). She found that people in Australia did not have access to renewable energy easily. Her vision was to simply allow common people, living in apartment buildings to trade electricity with each other, without the need of an energy generating company. She chose blockchain network for this, where the transaction of currency and services is completely decentralised, direct, transparent and accessible.
The concept behind Power Ledger is very simple. The surplus electricity, which is generated from renewable energy resources at residential and commercial developments can be directly sold to buyers. They just have to be connected to existing electricity distribution networks to sell/buy the electricity. Power Ledger has built several blockchain applications, such as P2P trading, Neo-retailer, Wholesale Market Settlement etc. to allow trading and businesses in electricity.
This blockchain service is accountable to both consumers and producers. On Power Ledger, producers have complete autonomy and independence to decide who they want to sell their surplus electricity, and at what price. They can track the transactions and distributions across distribution network by providing a secure revenue stream for DNSPs.
From the perspective of consumers, they can easily track the whole system of energy production, unit-wise from production to distribution. Then they can follow the financial aspects, ranging from the costs of renewable energy production and energy investments to the costs of transactions and distribution of electricity. This transparent information allows consumers to know what they are buying and encourages eco-friendly enthusiastic to opt for sustainable energy sources.
It is also encouraging for new consumers – individuals and eco-friendly firms (that opt for environment-related Corporate Social Responsibility) to participate in the new renewable energy market. Especially those firms and individuals who cannot afford to commit to the expensive renewable energy generating capacity, but would like to do so at lower prices.
The vision of Power Ledger
Currently, this blockchain service utilises solar energy to be traded. Tenets can set up solar panels on the rooftop and sell it to people living in the apartments of the building or to the buildings nearby. If the energy is generated at large scale, they can provide energy to a large group of buildings too. The key here is to incentivise the production of renewable energy by involving profit-generation. Anyone can invest in small-scale projects of renewable energy, and earn profits in the long-run. In the same manner, those who cannot afford to set-up solar panels or do not have a roof can directly buy electricity from nearby (and mostly, at cheaper rates). In this manner, energy market can become more decentralised and easy to enter.
The working of ‘Power Ledger’ is short and easy to follow, which makes it more accessible. It basically has a software solution that connects smart meters and records energy transactions. The electricity is tokenized in a unit called ‘Sparkz’. The electricity transaction is recorded on the blockchain network, which records the movement of Sparkz from the wallet of the buyer to the wallet of the seller.
These Sparkz are transferred continuously from buyer’s wallet to seller’s wallet, at the rate of energy consumption. Sparkz can be converted to national currencies. In this manner, the seller directly and instantaneously gets paid for the provision of electricity. It is unlike normal electricity transaction, where the bill comes after a certain period of time. This ensures that the seller is instantaneously getting paid for his service, without any defaults.
Power ledger recently completed public sale offering for POWR Tokens.
POWR tokens are the platform protocol tokens used to allow access to the Power Ledger platform, create security for participants via SmartBond, create a network effect by rewarding early adopters, incentivize usage and renewable power generation.
POWR token is available for trading at 0.21$ on binance, You can consider it as a good mid-term investment opportunity. Our target is 1$ in 2018.
Power Ledger has a range of applications for energy trading:
P2P Trading: This is the most basic and core service of Power Ledger. It allows peer-to-peer energy transaction and permits payments to be made instantaneously. Its simple benefits are the option to go for a clean and transparent energy source, and trading with neighbours. Financially, it allows sellers to receive more money for excess power and makes settlement costs very low for consumers. Thus, it mutually benefits both the parties.
Neo-Retailer: It follows smart supply and demand management. It protects the seller by ensuring instantaneous payments and settlements and protects the consumers from risks of non-supply.
Autonomous Asset (AA) Management: This application allows renewable energy assets to have shared ownership and share income generated. The payments are directly distributed to the assigned wallet addresses. Also, ownership of renewable assets can be transferred (bought/sold) here.
Carbon Trading: Power Ledger has a very interesting and useful service for corporate sector called Carbon Trading. It offers smart contracts for carbon traders to have legitimate, credible, transparent and auditable proof of their carbon footprint. It is especially useful for “Corporate Social Responsibility” (CSR) to report carbon credits or certificates to regulatory authorities.
Other technical applications are Wholesale Market Settlement, Distributed Market Management, Power Port etc. where a collection of data, its management, settlement issues and other services are carried out. For instance, one of them is Microgrid which enables the storage of all information regarding energy generation and transaction. It records “electricity metering, big data acquisition, rapid microtransaction and grid management at an unprecedented granular scale.”
Therefore, in the decentralised world of blockchain network, Power Ledger aims to diversify to the energy sector. By allowing peer-to-peer buying and selling of renewable energy, it is not encouraging transparency and accessibility in the energy sector, but also incentivising sustainable means of energy production in the much-needed era of the twenty-first century.