The Power Ledger Vision
Executive Summary for Power Ledger:
The energy sector is on the brink of disruption. Consumers around the globe are becoming more and more self-sufficient in terms of the production and storing of energy. Community powered cities are beginning to emerge as residents work towards creating a local low carbon energy economy, shifting the goal towards security of supply, long-term sustainability and competitiveness.
Power Ledger will play a significant role in this new energy economy, offering unprecedented customer empowerment and breaking down barriers for individual participation in the energy market.
Digital technologies will be an essential component in embracing these major changes and Power Ledger have identified blockchain technology as having the most potential to adapt the trading principles to the distributed ownership of energy resources.
Power Ledger will provide a fully-scalable transactional environment in a peer-to-peer marketplace, to deliver transparent, audit-able and automated market trading and clearing mechanism for residential and commercial businesses to decide who they want to sell their surplus energy to and at what price.
A token based system is required to facilitate direct trading between prosumers and consumers without the inclusion of industry intermediaries. For example, imagine a resident has extra power from their solar panels that they don’t need. A peer-to-peer marketplace, like Power Ledger, enables the prosumer to ‘sell’ the excess power into their local micro grid, which generates tokens for each kilowatt-hour provided. If, for some reason, they need more power than their solar panel can produce, due to prolonged cloudy weather for example, they can buy back kilowatt-hours using the same tokens from the micro grid. If they don’t need to buy any additional renewable power, they can sell their tokens on a separate exchange to generate additional profit from their renewable energy sources.
Where blockchain comes in, is to deliver the speed, security and transparency of data required to settle and reconcile the millions of transactions between hundreds of thousands of traders across 5-minute trading intervals in which energy is produced and consumed.
With a number of projects and trials already completed over the past twelve months, including a pilot with National Lifestyle Villages (NLV) in Perth, Australia, EnergyNest in Tasmania, Australia as well as a partnership with Vector Ltd. in New Zealand, the company is nearing the final stages of commercial deployment.
Power Ledger’s vision is to put the power to manage the energy economy into the hands of consumers, whilst maintaining the value of existing distribution networks. By working with grid operators to test out fairer grid charges for local trading and trials to reveal new ways of doing things, the company believes their model will empower individuals, communities and suppliers to work together to co-create their energy future.