Power Ledger Announces Asset Germination Events
In the energy industry, the speed of organic growth is typically glacial, but our planet doesn’t have time to wait for change.
If we’re going to turbocharge this growth in renewables, we need investment, so we’ve pioneered a product to do just this.
The reason for releasing this information ahead of an official launch is because we feel a moral obligation to keep our community informed with developments in the AGE model and to maintain a level of transparency. While there are still details to be finalized, we are confident enough in our proposed model that we feel the community is entitled to be informed.
Asset Germination Events (AGEs) use blockchain and cryptocurrencies to provide new sources of capital for funding energy projects. In 2019, people will be able to invest in and co-own energy assets, using AGEs.
This will be a world-first regulated crypto energy offering.
First and foremost, it’s worth noting that POWR’s value will remain tied to its utility — as a license and a bond for Application Hosts to use our platforms. Uptake in platform use still equates to uptake in POWR use, as Application Hosts are required to escrow POWR for as long as they’re using our technology. Irrespective of AGEs, the purpose of POWR remains as it always has and will still be used in all of our other applications, including peer-to-peer trading, carbon credit trading, virtual power plants and the AGE assets themselves will need to escrow POWR.
You can read more about what AGEs mean for POWR token holders here.
“The aim is to bring the investment potential of renewables to a new generation of consumer,” says Dave Martin, MD and co founder of Power Ledger.
“They can make so much financial sense, we wanted to create ways for ordinary people to get involved and invest in them.”
“It’s designed to be simple and transparent,” Martin said.
There is a social impact angle to this product too. Power Ledger co-founder and chair Dr. Jemma Green sees it as a way of creating a financial instrument to incentivise investment in energy infrastructure in emerging economies.
We’ve recently earned the endorsement of Sir Richard Branson after winning his Extreme Tech Challenge, who understands firsthand how important a product like this is for the industry.
“I was at Paris talks and we did all pledge carbon neutrality by 2050 and we’ve got to have it,” said Sir Richard, as he awarded the title.
Power Ledger sees that Asset Germination has a role to play in countries being able to meet their Paris goals. We’re confident our team can deliver.
Ultimately we see AGEs as a way of helping people out of oil poverty or replacing high carbon energy sources with something cleaner. And like all our products, it’s based on blockchain.
The blockchain functions as the asset register, which makes things very secure. It means the ownership registration is secure as is all the data relating to the energy it generates. This makes it ideal for the new generation of tech savvy investors who bring a social and environmental awareness.
The proposed scheme allows investors to pay with anything from a few dollars worth of POWR to thousands. You can do it as part of a community or as a sole player. The scheme, which we intend to operate like a trust, will have a custodian managing the asset on behalf of token holders. Token holders will have a higher-priority claim to the underlying assets than what they would have under traditional share ownership schemes.
Recent issues with share registries have shown how vulnerable ordinary investors are to the back office foibles of traditional ownership schemes. Such errors appear to be due to counting and timing errors under the traditional clearing systems. Blockchain is designed to address exactly these sorts of issues. Risk of this is greatly reduced by using the blockchain. Rehypothecation of assets will be impossible using our blockchain register.
Critics of the new model say it will need to comply with regulations, which we don’t see as a negative thing. IEA estimates put the market share of renewables in electricity supply to be 30 per cent by 2023, with investment in 2017 exceeding $300 billion according to Bloomberg New Energy Finance.