WePower, a blockchain startup backed by Japans Marubeni, has unveiled a new solution that allows companies to easily buy renewable energy in a typical e-commerce experience. Mojo Power, an Australian electricity trader, is the first to use the Elemental marketplace, which is marked in white.
WePower tokenizes electricity contracts so that the energy can be fractionated. However, if a company has bought more energy than it needs, it can sell it on. In many countries, a consumer or a company can easily switch between electricity suppliers. The aim is to make securing electricity from renewable sources just as easy.
Typically, renewable energy is purchased by a company or utility from a renewable generator through a formal power purchase agreement (PPA). This usually involves a fixed amount of electricity for a fixed period of several years. What happens when the company moves? So PPAs are not flexible and it is a non-trivial amount of work.
WePower previously worked with Mojo, and that work has now been standardized for other retailers in its Elemental solution. The retailer Mojo, for example, signed a PPA agreement with Robinvale Solar Farm in Victoria. And this energy was provided with a token so that Mojo can sell energy blocks to various buyers and the electricity buyer can resell unused quantities.
“Mojo removes the reliance on complicated energy procurement procedures and enables businesses of all sizes to easily purchase local green energy with full transparency,” said Warren Murphy, CEO of Mojo.
WePower Elemental not only enables retailers to bring renewable products to market for corporate customers, it also makes it easier for electricity traders to enter into contracts with renewable producers.
Meanwhile, other blockchain initiatives to promote the consumption of renewable energy are on the rise. Peer-to-peer trading (P2P) seems to be a common solution that households and businesses can use to trade their excess solar energy. The Australian Power Ledger has carried out P2P trials in India and Austria. The Tokyo Institute of Technology has also partnered with Mitsubishi Electric Corporation to develop a blockchain platform for P2P energy trading. Renewable Energy Certificates (RECs) are another common application. The Thai energy company PTT, in cooperation with the Energy Web Foundation, has developed a blockchain-based marketplace for certificates for renewable energies.