WePower Explores Blockchain Technology in Estonia
The bulk of energy in Estonia is currently being produced by fossil fuels, with only 18 per cent coming from renewable sources. However, one company is seeking to change that by testing the limits of what’s possible with blockchain technology. WePower’s CEO, Nick Martyniuk, explains that the main aim is to increase the percentage of electricity generated from renewables in the country and provide small to medium size companies with a better way to start buying green energy.
Making Energy Data Accessible
WePower has decided to make energy data available, and even enable people to share their energy meter data with service providers. According to Georg Rute, Elering’s digitalisation development manager, Estonia is a good piloting country due to its 100 per cent smart meter coverage.
Utilizing Blockchain for Data Sharing
The sensitive nature of energy data has been a roadblock for innovators, developers, and engineers interested in building new solutions. Martyniuk believes that blockchain provides the necessary trust for data sharing and creates liquidity and accountability between energy buyers and producers. This makes it easier for people to trade on the renewable energy trading platform that connects energy buyers directly with energy producers. In other words, blockchain gives people and companies the possibility to decide what green energy project to buy from, “hour by hour – token by token.”
Focusing on Renewables
WePower is focusing on renewables, allowing its platform to connect the grid, local energy exchange markets, and the end users of energy. Stephen Woodhouse, chief digital officer at Pöyry, a consulting company focusing on energy, industry, and infrastructure, says that the cryptocurrency and tokenization approach is offered as an alternative to a more traditional renewable energy power purchase agreement. The trial itself is an attempt to understand the limits of this approach. If successful, the project may be scaled up, potentially creating an energy exchange or facilitating peer-to-peer trading.
Potential Challenges Ahead
One concern is the capacity for transaction volume, as WePower mainly uses the public ethereum blockchain that applies the proof-of-work (PoW) approach. This approach requires a lot of energy and computing power that only professional ethereum miners can provide. Fei Wang, senior research analyst at Wood Mackenzie, an energy research and consultancy firm, states that this may be a hurdle if the project were to expand to a full commercial deployment.
In conclusion, WePower’s blockchain project in Estonia represents a significant effort to revolutionize the energy market, with the potential to increase the percentage of electricity generated from renewables. However, as with any innovative technology, there are challenges that need to be overcome for the project to reach its full potential.
I have over 10 years of experience in the field of cryptocurrency and blockchain technology. I have attended numerous conferences and events around the world, and my work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and Yahoo Finance.
