Power Ledger is an Australian company seeking to disrupt the energy industry. Find out how it works today in our review.
What is Power Ledger?
Power Ledger and its POWR tokens seek to change the way we use, consume, and access energy. The company aims to solve crucial problems in today’s energy industry – like increased costs and increased centralization of control of energy production.
To solve these problems, Power Ledger aims to create a “new paradigm” by creating a decentralized, trustless trading platform. Anyone – like utility companies or ordinary consumers – can use that platform to trade energy in a P2P environment. Power Ledger allows communities to create their own stable energy ecosystem, or for consumers to enjoy lower energy costs from better energy sources.
The end result of Power Ledger is the creation of a competitive, fair, decentralized marketplace, where the best sources of energy rise to the top. Consumers can choose eco-friendly energy sources if they like, or they can choose to sell their own energy production on the blockchain using smart contracts.
How Does Power Ledger Work?
Power Ledger creates a decentralized, trustless, P2P marketplace. That marketplace can be implemented in any country with a regulated or unregulated energy market.
In countries with a regulated energy market, retailers can sell energy to consumers through this decentralized marketplace. In countries with a deregulated energy market, consumers can trade energy amongst themselves.
All payments are received in real-time using a trustless, automated reconciliation and settlement system. Power Ledger identifies other benefits – like the ability to select a clean energy source, trade with your neighbors, and receive more money from the power you’re already generating.
Users and consumers both benefit from increased transparency of trades on the blockchain along with low-cost settlements.
The end result of all of these features is a lower energy bill and improved ROI for energy producers.
Power Ledger is built on top of the Ethereum blockchain. The platform uses smart contracts and oracles. The top layer consists of Power Ledger applications, including peer-to-peer, neo-retailer, virtual asset operator, and distributed market management applications.
The second layer consists of ecochain services, including services for electrical vehicles, meter reading applications, and power trading transmission exchanges.
Finally, the third layer, just on top of the Ethereum blockchain, consists of the Power Ledger Core.
Power Ledger Features
Power Ledger emphasizes all of the following features:
P2P Trading: Power Ledger’s P2P trading gives retailers and consumers the ability to make transactions with each other in a transparent, decentralized environment.
Helps Neo Retailers: Neo-retailers enjoy smart demand and supply management along with instant remuneration and payment settlements while managing consumer exposure to the risk of non-supply.
Microgrid/Embedded Network Operator/Strata: Power Ledger allows the creation of applications to enable energy metering, big data acquisition, rapid micro transactions, and grid management “at an unprecedented granular scale,” explains the official website. Trading in embedded networks breaks the nexus between generation ownership and energy consumption, which means value can be derived from an investment in energy even if the investor is absent or doesn’t consume all the energy they generate. This opens the marketplace to microgrids, embedded network operators, and strata organizations.
Wholesale Market Settlements: Power Ledger offers low-cost and transparent settlements.
Autonomous Asset (AA) Management: Power Ledger allows for shared ownership of renewable energy assets as well as trading renewable asset ownership. The AA is able to buy and sell its own electricity and distribute its income to assigned wallet addresses.
Distributed Market Management: Power Ledger provides optimized metering data, the collection of big data, right to access and dispatch of assets, rapid transaction settlement, network load balancing, frequency management, demand side response, and demand side and load management. This optimizes network assets across the platform.
Electric Vehicles: Real-time metering data is facilitated with the Open Charge Point Protocol, or OCPP. Virtual pipeline and roadside assistance assets can be automated via the platform, opening the door for electric vehicles.
Carbon Trading: Power Ledger’s platform can be used to create smart contracts for carbon trading.
Who’s Behind Power Ledger?
Power Ledger was founded by Dr. Jemma Green, David Martin, John Bulich, Dr. Govert Van Ek, and Jenni Conroy, all of whom are listed as co-founders.
The company was founded in 2016. In Q3 2016, Power Ledger completed its first blockchain trial with National Lifestyle Villages in Australia. 15 dwellings were connected via the blockchain, leading to a community energy marketplace. In Q4 2016, the company expanded its testing to New Zealand.
Over 2017, they’ve partnered with multiple properties across Australia and New Zealand, along with Indra Australia. They also partnered with Synergy, Western Australia’s state-owned retailer, to deploy the first blockchain-based trading environment for electric vehicle charging.
How Do POWR Tokens Work?
POWR tokens serve as the fuel of the Power Ledger ecosystem. However, the platform is officially a dual token ecosystem, with a second token called Sparkz used for ecosystem transactions.
POWR tokens are required to generate Sparkz. Sparkz are a local market level token priced for the exchange market, then deployed to allow for frictionless transactions. Purchasing a sufficient amount of POWR tokens allows application hosts to access the ecosystem, where they can then convert POWR tokens to Sparkz and on-board their customer base.
The tokens are ERC20 tokens built on the Ethereum blockchain.
Power Ledger raised $17 million AUD during its pre-ICO, with a further 140 million POWR tokens available during the main crowdsale. In total, the company was able to raise $34 million AUD through its ICO, which concluded in October.
Power Ledger made headlines for launching the first ICO in Australia.
Power Ledger aims to empower individuals and communities to build their own energy future. To do that, Power Ledger creates a decentralized, transparent marketplace where participants – including energy producers and consumers – can interact in a trustless environment.
The ultimate goal is to create a power system that doesn’t rely entirely on centralized utility companies: it’s a low-cost, zero-carbon power generation system “owned by the people of the world.”
Power Ledger consists of an app built on top of the Ethereum blockchain. To learn more about Power Ledger and its POWR tokens, visit the platform online today at PowerLedger.io.