P2P trading has been a part of the crypto industry since its inception with Bitcoin, but when it comes to other commodities like energy, the concept of peer-to-peer trading is relatively new. Powerledger is a DePIN project that creates software for utilities to help them innovate and create new products for their customers. By unlocking the potential for peer-to-peer energy trading, Powerledger aims to create a more sustainable and efficient energy system.
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In this interview, Dr Jemma Green shares her insights on the challenges and opportunities in the energy sector, as well as how Powerledger is revolutionizing the way we think about energy consumption and distribution.
Improved benefits for the energy grid
After a brief introduction to how Jemma Green got into the blockchain space and co-founded Powerledger, she dives into one of the key topics of the interview: how Powerledger is enabling energy grid benefits.
According to Dr. Green, the energy industry has traditionally been a highly centralized and monopolized system. However, with the rise of renewable energy sources and the increasing demand for sustainable solutions, there is a need for more decentralized and efficient systems. This is where Powerledger comes in: by enabling peer-to-peer energy trading, a more democratic and fair distribution of energy resources becomes possible.
“This is incredibly important for the electricity grid, otherwise it would have to build more poles and wires and upgrade infrastructure such as substations, which is very expensive.”
Dr. Jemma Green, co-founder of Powerledger
She emphasizes how important it is that energy is consumed locally, because this puts less strain on the electricity grid. A transparent model, enabled by blockchain technology, makes this possible because, for example, consumers can purchase energy directly from their neighbors who may have excess solar energy. This not only reduces dependence on traditional energy sources, but also promotes a more sustainable and resilient energy system.
Why Blockchain is needed in this ecosystem
While Jemma explains that it is entirely possible to solve the problem of energy distribution without a blockchain, she believes it is a crucial piece in the puzzle. With a decentralized system, blockchain provides a more transparent and secure way to track energy production and consumption. She uses the analogy of a cornerstone where grocery items have a barcode. This feature makes the entire tracking system more efficient. Blockchain does this with energy through its transparent tracking system of every transaction publicly displayed on their ledger.
“In the energy field there are many problems with greenwashing, sometimes voluntary and sometimes simply due to poor accounting systems.”
Dr. Jemma Green, co-founder of Powerledger
When it comes to the carbon credits industry, a lack of proper accounting can be disastrous. Without a more efficient and fair tracking system like blockchain, a carbon credit holder could potentially get away with selling their carbon credits multiple times, leading to confusion and a false sense of progress in reducing carbon emissions.
Businesses prior to the arrival of Powerledger showed signs of hesitation due to these carbon credit market issues. Combined with recent scandals involving major companies like Verra and their fraudulent trading in carbon credits, it is no wonder that the market appears to have come to a standstill. Innovations such as blockchain have seen the market start to recover and Powerledger is at the forefront of this change.
How DeFi can improve the energy sector
Jemma’s eyes light up when she thinks about how settlements within the energy industry can also be made more efficient with blockchain. For example, settlements via stablecoins can even eliminate the need for intermediaries such as banks, further reducing costs and increasing efficiency. Blockchain allows settlements to be processed almost instantly, reducing the time and costs associated with traditional methods. This not only benefits the energy market, but also creates a more streamlined and transparent process for consumers.
“This is very attractive because normally you get your electric bill every 60 to 90 days and pay it a month later, so it’s really latent.”
Dr. Jemma Green, co-founder of Powerledger
With a real-time approach to energy billing, consumers can gain a better understanding of their energy consumption and costs, allowing them to make more informed decisions about their energy consumption. This not only benefits individual consumers, but also contributes to overall energy management and conservation efforts. So, as mentioned earlier, these benefits of blockchain technology are not essential, but it undoubtedly has features that are an improvement over the current system.
Choosing the right blockchain for the job
As the conversation shifted from ‘why’ use blockchain to ‘which’ blockchain we should use, Jemma reminded us that being able to become agile in a growing and rapidly changing industry is the key to success. That said, Jemma explores the timeline of experiments with different chains, such as a fork of Bitcoin and EcoChain, a private chain based on Ethereum.
Finally, Powerledger has found its home on a Solana hard fork, as the demands for their project are high. Despite the available L2s, having another blockchain as part of their ecosystem would have caused more problems down the line. The efficiency of Solana was hard to deny, as it can process up to 50,000 transactions per second while being secure and decentralized, leading to the decision to use it as the foundation for Powerledger.
Since their native currency ($POWR) comes from Ethereum, the Powerledger team has diligently taken practical steps to migrate to Solana. They recently launched $POWR on Solana and are working on liquidity for a seamless exchange between the two chains. This will not only enable faster and cheaper transactions for their users, but also allow them to take advantage of Solana’s unique features, while allowing Powerledger to focus on their main goal: creating a sustainable energy future.
Exploring the Powerledger ecosystem
The P2P model of exchanging unused energy for monetary value was explored in more detail as we laid the foundation for blockchain technology and its use in the energy sector. Essentially, the blockchain serves as a secure and transparent platform for users to buy, sell and trade renewable energy.
This not only benefits individual households, but also creates a more sustainable future by reducing dependence on utilities. However, Powerledger won’t put these traditional suppliers out of business because when the supply of energy is lower than demand, the utility can step in to fill the gap.
“The utility is the provider of last resort.”
Dr. Jemma Green, co-founder of Powerledger
If the opposite scenario were to occur where the supply side has more energy available than demand, this excess energy can be sold to the utility, ensuring a consistent payout for the producers. This sustainable model reduces energy waste and maintains supply when necessary.
Exposing transparency of energy sources
In traditional energy systems, it can be difficult to understand the exact amount of renewable energy being produced and consumed. However, with Powerledger’s blockchain technology, the entire process from production to consumption can be tracked and verified in real time. This level of transparency enables better decision-making and accountability between energy producers and consumers.
“What blockchain offers is a solid order path that can alleviate some of these problems.”
Dr. Jemma Green, co-founder of Powerledger
For example, Jemma talks about how one of their customers supplies energy to an EV charging station and users of the station can see exactly where their energy comes from, whether it is solar or wind energy. This not only creates trust between consumers and producers, but also encourages the use of clean energy sources. By offering this capability to their partners, manufacturers can offer more value-added services to their customers.
Final thoughts
In today’s world, where the shift to renewable energy is becoming increasingly important, blockchain technology offers a sustainable and transparent solution for managing energy systems. Powerledger’s platform not only benefits producers and consumers, but also contributes to a greener and more equitable future for our planet.
Another problem for people is the cost of living, but with blockchain this can be reduced so that everyone has access to affordable and clean energy. Jemma Green is strengthening communities and transforming the energy landscape through Powerledger’s innovative use of blockchain technology.
