Blockchain technology is being deployed to securely manage and share data, eliminate transactional inefficiencies, and reduce costs which explain why some of the most interesting use cases are in the solar energy space.
Because of its ability to enable peer-to-peer trading of energy credits as well as crowdfunding projects, blockchain ledgers are indeed the crucial missing ingredients to disrupt the energy industry. New Era Energy and Solana are just a few of the projects experimenting with distributed ledgers to transform the energy sector.
Last month, blockchain energy startup WePower joined the movement with the launch of an alpha version of its blockchain-based renewable energy financing and trading platform. The alpha version features six projects developed by Conquista Solar from which end-users and the firm’s corporate customers can purchase renewable energy. Hours after the alpha went live, thousands of users signed up on the platform to review these projects and indicate their interests to participate in the future auctions of the energy to be sold.
Announcing the launch, WePower CEO Nick Martyniuk said:
“I strongly believe, that with Alpha platform launch, WePower brings a blockchain energy network to commercial fruition.”
Conquista Solar, a Spanish green energy developer, will use WePower platform to raise funds by selling their future energy production upfront in the form of energy tokens. Each of its six projects is able to produce 50 megawatts of solar power, bringing the total supply capacity to 300 megawatts. Despite this relatively high generation capacity, WePower and Conquista Solar intend to expand the platform’s supply to 1,000 megawatts over the next 12 months.
The key element for the success of WePower project is giving consumers the ability to get directly involved with promoting sustainable energy without having to invest in their own green energy solutions. The platform allows clean energy producers to raise capital by selling future energy upfront at a low cost, and energy consumers can purchase it through power purchase agreements enabled by smart contracts.
In addition to enabling developers to bypass the traditional funding models of securing funding for projects, WePower platform also allows countries to add renewable energy production into their grids using blockchain technology.
WePower recently introduced an auction feature on its platform to allow bidders to start getting energy from Conquista power plants as early as May next year. Participants who purchase energy or invest in Conquista project will be able to consume the energy themselves or sell it to Spain’s wholesale market at a profit.
By using distributed ledgers and smart contracts, WePower aims to provide transparent green energy accounting, making the market more accessible for renewable energy. The firm is already expanding into Australia, a move that could allow it to scale the platform as quickly as possible and compete with similar blockchain applications.