WePower/Elering Nationwide Energy Experiment Results Revealed

The buzz has been building in our offices in Europe and Australia over the past few weeks as we edged towards this moment. Finally, we can share with you the results of the groundbreaking nationwide energy tokenization pilot in Estonia!

Today we are announcing the successful delivery of a landmark nationwide energy tokenization pilot project in partnership with Estonian transmission system operator (TSO) Elering. One that paves the way for the digital revolution of the energy sector.

The project involved converting a year’s worth of Estonia’s national energy consumption and production data onto Ethereum blockchain and the results prove positive for both energy and blockchain industries.

26,000 hours and 24TWh of energy production and consumption data was turned into 38,973,240,000 Smart Energy Tokens.

On behalf of WePower’s team, I would like to thank our friends, partners, and token holders as well as the wider WePower community for your continuous support.

Why did we run the experiment?

Our mission is to foster the global transition to renewables by providing a streamlined way for companies to transact directly with green energy developers. The financial and legal instruments that currently exist in the market, such as Power Purchase Agreements (PPAs), are too complex and expensive for corporate energy buyers. Our next generation green energy procurement and trading platform uses virtual PPAs — taking a process that usually requires years to complete to an entirely new level.

By simplifying the contract process and offering the opportunity to offtake a small share (min 0.1%) of the total volume, WePower is opening the PPA market to buyers who previously could not participate. We are enabling all companies, regardless of their size, to become greener in a cost effective and fungible way.

The nationwide energy tokenization pilot in Estonia allowed us to test the technological capabilities of Ethereum, the blockchain that sits at the core of WePower’s platform and build a solid infrastructure to allow us to run the first green energy auctions, as well as develop features for large-scale energy trading in secondary markets.

Key goals of the test

Lack of scalability is one of the biggest roadblocks when it comes to blockchain solutions for the energy market. There is also a lack of reference architectures for combining centralized IT platforms with public blockchains.

In order to succeed, we needed to:

  • Design a testing environment that would be realistic, yet fully compliant with privacy regulations.
  • Test the asynchronous integration layer between WePower’s centralized platform and a public blockchain.
  • Test the processing capacity needed to run the WePower trading platform at a national level.

Interesting fact: Had we not optimized the data set, storing 6.132 billion data points would have taken us roughly 14 years and cost EUR 210 million. Find out how we optimized the data in the extended Technical Report.

Why Estonia?

Estonia has great energy data infrastructure already in place. Elering’s Estfeed acted as a perfect scalable data bridge for us. The Estfeed data exchange platform facilitates secure and authorized access to energy (e.g. electricity and gas) meter consumption data by enabling end consumers, scattered producers and network operators to choose who to share their data with via the online platform e-Elering.

The data provided by Elering was anonymized by aggregating together hourly consumption data from all meter points within postcodes. Essentially, the data of all neighbors was added together, so that no single neighbor could be identified.

“Future clean and secure energy will depend on innovative solutions and consumer empowerment. However, a major barrier in most countries is the lack of access to energy data. Estfeed unlocks data access within Estonia and we are now working towards doing this on an international level. WePower’s proof of concept is important for showing how data access leads to innovation.” — Taavi Veskimägi, CEO of Elering

Results and Conclusions

26,000 hours and 24TWh of energy production and consumption data was turned into 38,973,240,000 Smart Energy Tokens.

Ethereum is mature enough to accommodate contracts with multi-year terms. There are promising alternatives available as well in the development phase, but their infancy is a concern in relation to typical durations of energy contracts.

Ethereum performance indicators are sufficient for WePower to operate the renewable energy procurement and trading platform at this stage. The hybrid platform architecture can be operated with the required cost-performance for current business needs. In order to meet increasing performance requirements in the future though, we will need to consider validating other blockchain/DLT solutions to identify more efficient systems to run the larger scale trading platform.

I had a chat with our CTO Kaspar about the project. Have a look:

“Projects of this scale and ambition haven’t been attempted before, in part because of the complexity involved, but also because energy data is highly sensitive. Blockchain is the ideal enabler because its foundational principle is trust, which can be leveraged to bring revolutionary transparency to the industry. The project will deepen our understanding of blockchain as a means to share data, paving the way for much needed innovation in the energy industry.”
 — Kaspar Kaarlep, CTO of WePower

Find out more about the project from our dedicated R&D page:


Read our Extended Technical Report covering all the steps of the pilot:

This 20-page report will give you an in-depth look at how our engineers carried out the experiment as well as information about the next steps and upcoming features.

You can find the Executive Summary of the report here.

I could not be prouder of our team for making the first stage of this groundbreaking blockchain pilot a success! From here on, our R&D team will be focused on the features that are required to further optimize WePower’s platform for large-scale commodity trading purposes, for example, electricity and energy price settlement and netting. The roadmap is leading the way to concepts that support WePower to grow into a fully functioning virtual utility.

When we have the essentials covered, we’ll look deeper into energy market behavior. As part of the second phase of the Elering pilot, we will explore different aspects of secondary Smart Energy Contract marketplace dynamics.

WePower Testbed on GitHub

Last but not least, our developers have started a dedicated GitHub page where they are sharing the technical findings. We’d love to hear from other blockchain protocol developers. Don’t hesitate to reach out!