P2P trading has been a part of the crypto industry since its inception with Bitcoin, but when it comes to other commodities such as energy, the concept of peer-to-peer trading is relatively new. Powerledger is DePIN project that makes software for utilities to help them innovate and make new products for their customers. By unlocking the potential for peer-to-peer trading of energy, 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 industry, as well as how Powerledger is revolutionizing the way we think about energy consumption and distribution.
Empowering Benefits For The Energy Grid
After a brief introduction about how Jemma Green got into the blockchain space and co-founded Powerledger, she dives into one of the main topics of the interview – how Powerledger is empowering benefits for the energy grid.
According to Dr Green, the energy industry has historically 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 trading of energy, it allows for a more democratic and fair distribution of energy resources.
“This is incredibly important for the grid or else it would have to build more poles and wires and upgrade infrastructure like substations which is really expensive.”
Dr. Jemma Green, Co-Founder of Powerledger
She emphasizes the importance of energy being consumed locally as it puts less strain on the grid. With a transparent model powered by blockchain technology, this is made possible as consumers can directly purchase energy from their neighbors who may have excess solar power, for example. This not only reduces the reliance on traditional energy sources but also promotes a more sustainable and resilient energy system.
Why Blockchain Is Needed In This Ecosystem
Although Jemma explains that it’s entirely possible to solve the issue of energy distribution without blockchain, she believes that it’s a crucial piece in the puzzle. With a decentralized system, blockchain allows for 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 energy, there are a lot of problems with green-washing, sometimes willingly and sometimes just through 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 can potentially get away with selling their carbon credits multiple times, leading to confusion and a false sense of progress in reducing carbon emissions.
Companies prior to the advent of Powerledger showed signs of hesitation because of these issues with the carbon credit market. Combined with recent scandals from major companies such as Verra and their fraudulent carbon credit trades, it’s no wonder the market seems to have stalled. Through innovations such as blockchain, the market has started to bounce back and Powerledger is at the forefront of this change.
How DeFi Can Improve The Energy Industry
Jemma’s eyes light up as she recalls how settlements within the energy industry can also be made more efficient with blockchain. Settlements made through stablecoins for example, can even eliminate the need for intermediaries such as banks, further reducing costs and increasing efficiency. With blockchain, settlements can 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 really appealing because normally you get your electricity bill every 60-90 days and you pay it a month later, so it’s really latent.”
Dr. Jemma Green, Co-Founder of Powerledger
With a real-time approach towards energy settlements, consumers can have a clearer understanding of their energy usage 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 alluded to earlier, these benefits of blockchain technology aren’t essential but it undoubtedly has features that are an improvement on the current system.
Choosing The Right Blockchain For The Job
As the conversation shifted from ‘why’ use blockchain to ‘which’ blockchain to use, Jemma reminded us that being able to become flexible in a growing and rapidly changing industry is key to success. With that being said, Jemma explores the timeline of experiments on different chains such as a fork of Bitcoin and EcoChain which was a private chain based on Ethereum.
Finally, Powerledger has found its home on a hard fork of Solana as the demands for their project are high. Despite the L2s available, having another blockchain as a part of their ecosystem would have presented more problems down the line. Solana’s efficiency was hard to deny as it can process up to 50,000 transactions per second while still being secure and decentralized, which led to the decision of using it as a base for Powerledger.
With their native currency ($POWR) originating on Ethereum, the team at Powerledger has been diligently making practical strides to migrate to Solana. Recently, they have launched $POWR on Solana and liquidity is being worked on 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 Powerledger can focus on their main goal of 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’ve layed down the foundation of blockchain technology and its uses 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 as it reduces the reliance on the utility companies. However, Powerledger won’t be putting these traditional suppliers out of business as when supply of energy runs lower than demand, the utility company can step in to fill the gap.
“The utility is the supplier 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 the demand, this excess energy can be sold to the utility company, ensuring a consistent payout for producers. This sustainable model reduces wasted energy while maintaining supply if needed.
Uncovering Transparency of Energy Sourcing
Understanding the exact amount of renewable energy that is being produced and consumed can be difficult in traditional energy systems. 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 allows for better decision making and accountability among energy producers and consumers.
“What blockchain provides is a rock-solid order trail that can alleviate some of these issues.”
Dr. Jemma Green, Co-Founder of Powerledger
As an example, Jemma shares how one of their clients provides energy to an EV charging station and users of the station can see exactly where their energy is coming from, whether it be solar or wind power. This not only creates trust between consumers and producers but also encourages the use of clean energy sources. By providing this capability for their partners, producers are able to offer more value-added services to their customers.
Final Thoughts
In today’s world, where the shift towards renewable energy is becoming increasingly crucial, 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.
The cost of living is another problem for people, but with blockchain it can be reduced so that everyone has access to affordable and clean energy. Jemma Green is empowering communities and transforming the energy landscape through Powerledger’s innovative use of blockchain technology.
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