When thinking about clean energy, Australia is one of the first countries that comes to mind. This continent has long been the synonym of immense potential. “Power Ledger” is the company which recognized the need for transformation in the energy sector and drew the following fact out on the surface: reliable, renewable, clean and low-cost energy is one of the basic human needs. Better access and control are obviously something Australians had a focus on. The way they managed to pull it off, and not just in Australia but worldwide, is by using the blockchain technology.
There is an interesting line I came across on their web site that says: “We’re reimagining energy.” And this is what the entire story is about – using blockchain networks to redesign the world around us and to make different resources more available and controllable.
How Blockchain-Driven Systems Improve Our Lives
What blockchain actually does is allowing all users to choose the source of the energy they wish to use, as well as to buy and sell the energy directly from other users of the network, i.e. members of their community. We have written in the past about the advantages of using blockchain, and how it transformed our views on life, while still transforming economies globally. As a quick recap: it provides transparency in each piece of information shared, while at the same time protecting anonymity of all users. Tracking all steps in the process of payment, or exchange of information and assets while eliminating the centralized “third party” (or the “middle man”) are highly regarded features of blockchain. What does it all mean for a member of a community?
Producing, selling and buying of clean energy makes a household independent of larger companies that usually hold monopoly in the power sector, and which are using fossil fuel. On the other hand, whether there is a potential for these companies to become partners of a regular guy, member of the blockchain community, is still the subject to be explored.
How Does Blockchain-Based Power Companies Work?
The hero of this story, the company Power Ledger, has set up microgrids and linked them to the producers of clean energy, as well as to new residential developments. The company provided the users with the network where they can trace the sources of energy, the ways this energy is produced, the active parties involved, the prices, and eventually – the opportunity to trade with energy directly. This is what makes sustainable development.
The predictions are that the number of people interested in this type of energy production and supply will be on the rise, as there is already a large number of households that are disconnecting from the “traditional” grid and ready to join the blockchain community.
As a result, massive changes are expected in energy markets around the world. The question is if the large companies which are running a fossil fuel burning plants are ready for some crucial changes. While we will leave professionals to dwell on this subject, let us remind quickly about the key features of blockchain-based energy production:
• Enables consumers to receive instant income from renewable energy assets
• Customers can buy less expensive renewable energy
• Competitive advantage for innovative retailers
• Transparent, secure and instant electricity transactions
• Better return for excess energy
• More competitive electricity prices.