Blockchain Technology Empowers the Green Energy Revolution

If you’re in the green energy business, you have likely experienced a network of red tape and backdoor politics just to get projects off the ground.

One of the major issues in managing green energy usage using the average electricity grid is estimating how much power has originated from sustainable sources compared to the traditional fossil fuels. This puts green energy tech at a massive disadvantage as one cannot accurately gauge sustainable energy consumption against standard electricity, which means potential investors are straddling a neutral line.

Governments have issued tradable certificates concerning sustainable energy usage; however, these are badly managed and provide no tangible way forward.

Green energy is the way to a brighter future; no pun intended

Enter blockchain. Blockchain’s backbone is a system of incorruptible, encrypted ledgers that is the ultimate solution where data management is concerned. This sounds promising for the energy sector where consumers and producers alike share the same data sets.

To give you a more accurate scenario, let’s imagine a sustainable energy power plant.

● Phase 1 — The plant generates x units of energy today, which is logged on a typical spreadsheet. The data then travels to a registry provider where the data is logged and a certificate is generated.

● Phase 2 — Agents’ broker deals between buyers and the sellers of the certificates.

● Phase 3 — A third party verifies the purchase to ensure validity.

Phew, that’s a long process for one certificate! There’s also the problem of human error and/or outright fraud when evaluating the transparency of the process itself.

Blockchain would make such processes obsolete overnight. No middle-man, no fraud and an accurate representation of energy consumption in one move.

Creating New Architecture

Blockchain will also break ground at record speeds when it comes to transforming the construction of modern grids itself. The electricity industry, by and large, still operate using massive centralized plants. Electricity is sent over long distances through traditional lines, which is inefficient for those using storage facilities like solar panels since they cannot reach their maximum potential.

Immediate Payment

Another bonus, which energy producers will appreciate, is the speedy processing of each transaction. It takes 2–3 months, on average, for electricity producers to receive payment. By utilizing a blockchain-based system, these producers receive payment immediately — Christmas come early every day!

Too Far Ahead of the Competition?

For many, buying green equates to outlying more money. While subsidies and policies have been issued to try to cover the extra costs in favour of the consumers, utilizing taxpayers’ funds to enable these subsidies have decreased. Businesses, on the other hand, still need to provide these services, which means they’re footing the bill, increasing costs and risk losing market share should they jump ahead of the competition.

Green cryptocurrency is the start of truly global financing in the new age. By combining technologies like blockchain and smart contracts with green data, one opens the door to raising finances on the green front, leading to innovation and influence in a leadership capacity. Rewards for clean/green purchases will push the movement forward at an exponential rate. The ultimate goal is to turn green tech into market commodities that can be accessed by anyone.

Inspiring confidence

Corporations currently utilizing blockchain technology, to improve their supply-chain management, can also manage environmental data and embed this info in their transaction. On the consumer end, such transparency inspires confidence among buyers who rely on information provided from sources they need to believe is incorruptible. By using a blockchain-based system, their wish has been granted!

All in all, blockchain technology and green cryptocurrencies provide an innovative way to fast forward the next phase in the green energy revolution.

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