Hi everyone,
It's been 5 days since my last post and for good reason.
I have been diving deep into research mode on this energy blockchain called Power Ledger.
Power Ledger (PL) is one of the top headlining energy blockchain projects in the world; for reasons such as:
- PL had successfully raised US$25 million in their Initial Coin Offering (ICO) back in October 2017.
- PL have won the Top 3 Finalist Spot for Sir Richard Branson's Extreme Tech Challenge (XTC) which will be held at his private island, Necker Island in Fall 2018.
- PL, originally from Australia, are already present in 6 more countries including New Zealand, Thailand, Japan, Europe and North America.
What is Power Ledger?
In a nutshell, Power Ledger is a blockchain which allows energy producers to sell electricity (e.g. rooftop solar) directly to consumers without a middleman such as an electric retailer.
Rooftop solar on a home.
If this sounds alien to you, it should be because it is!
Firstly, there aren't many people who generate solar electricity from their homes. Secondly, even if you do have electricity to sell, you cannot deal directly with electricity consumers because:
- You do not own the grid (the physical network that delivers electricity to consumers).
- You have no way of knowing who your consumer is.
- Billing is a hassle.
However, thanks to blockchain technology, new alternatives such as PL are emerging to create these new possibilities.
How Blockchain e.g. PL is Changing the Rules
1. Transactions without a middleman
Bitcoin is the first and longest running blockchain to demonstrate how value can be exchanged from one person to another without needing to go through a bank.
In the current energy network, there are actually many people involved in delivering electricity to your home. From the electricity generation companies to transmission to distribution; each layer requiring its own check and balances or audit trail when it comes to monitoring actual deliverables and money.
Blockchain offers the opportunity (and threat) to cut away all intermediary costs and create a "trustless" platform where you can transact with people who you do not know.
Therefore, you can sell electricity directly with consumers with ease.
2. Tokenization of Energy
Energy has no signature.
Traditionally, there was no method to tell apart one unit of electricity that was made from solar or a carbon-based source.
PL's POWR token
With a blockchain, each unit of electricity created can be recorded onto the public ledger and represented by a token. In other words, you now can choose clean electricity by buying these tokens.
In the near future, I envision there would be tokens that represent different things such as electricity from solar, wind, biothermal... perhaps even kinetic!
Gym bikes that generate electricity
3. Opportunity for Prosumers to Gain More Profit
Prosumers are rooftop solar owners who produce electricity for own consumption and sell excesses as an additional income
Naturally, the opportunity (and threat) to do away with intermediaries will bring about significant reduction to electricity costs; which the margins can be transferred either to the prosumer or the consumer.
In its demo video, PL explains that prosumers are currently selling solar electricity to energy companies in Australia @ 7 cents and then it is sold to the consumer at 20 cents.
By using PL platform, prosumers can sell directly to consumers at 20 cents, pocketing 15 cents for themselves (2x income) while 5 cents is rewarded to Western Power who is responsible for maintaining the physcial electrical infrastructure e.g. poles, wires and grid.
Can Power Ledger be used in Malaysia?
Not yet. But just maybe.
Power Ledger has already made its presence in Thailand and they also made a recent appearance at our government agency led conference ISES 2018 held in Kuching, Sarawak.
In other words, they are definitely on the radar of our local regulators.
It remains to be seen whether Malaysia would allow Power Ledger to do a trial run here because:
- Our electrical supply network is still highly centralized.
- Our main electricity retailer, Tenaga Nasional (TNB) will stand to lose out the most.
- There might be huge political implications.
If they do however:
- All the prosumers in the country stand to gain more from their production.
- We might see rampant growth in renewable energy adoption in the country.
- We might see a healthier vibrant renewable energy industry in the country.
Final Thoughts
Upon my research, I realize both PowerLedger and I share many similar objectives.
Both of us are working towards a future where:
- Renewable energy will be our main source of electricity.
- We do it together; by generating our own electricity (using rooftop solar) and selling excesses to our neighbors.
- We can rely on each other; leading to the eventual independence from centralized utility companies.
There are huge challenges. But the future looks promising each day.
Buzz
Hi, my name is Jason aka @buzz.lightyear. I envision a future where renewable energy is our main source of electricity in this lifetime; reducing the largest contributor of carbon emissions by 90% and bringing our global temperatures back to its natural balance.
I believe that this is no easy task but it is achievable with your support.
I am developing an open blockchain that incentivises both producers and consumers of renewable energy and am looking to collaborate with brilliant minds who share this vision so that we can create a future where it just makes sense to go 100% renewable, visit your local store, buy some latest tech and generate energy for your own use and for others.