Green energy is big news across the globe and continues to expand through the use of solar, wind and hydroelectric plants. Power Ledger (POWR) hopes to capitalize on this growing interest in a cleaner planet by creating a system of energy trading and investing across borders just as Ripple (XRP) is working to change legacy bank transactions.
Currently operating in micro units around the globe, Power Ledger is giving proof-of-concept of its blockchain management network which allows real time trading of energy on the network between producers and buyers without a transfer agent. It has received grants from the Australian government to help launch testbed in the cit of Freemantle to exchange both energy and water.
Just as Ripple (XRP) is working to unseat the legacy banking transfer system, Power Ledger (POWR) is working to upend the energy delivery network through use of blockchain technology. The hope is to help move energy from producers to consumers via a digital market allowing customers to bid for energy production through the use of a second token called Sparkz. Ownership of POWR will be required for producers to use the market and issue Sparkz which creates demand for the POWR tokens and hopefully drives prices higher as the network grows.
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Built on Ethereum ERC-20 technology
Ethereum (ETH) brought the blockchain the first innovation with the introduction of smart contracts. The Power Ledger network is built on this technology which allows for the issue of POWR and securing of the tokens on the blockchain as a sort of collateral. By securing POWR on the network in a smart contract, producers can then issue Sparkz tokens allowing customers to navigate the energy market to help move energy to consumers.
In the current environment, green energy producers are subject to both environment and market factors in energy production. Hydroelectric tends to create a steady even amount of energy both day and night despite most use coming during the day. This forces hydroelectric producers to sell power during off peak at very low to no profit or risk losing the power produced without buyers. Solar tends to produce large amounts of energy during peak and 0 energy during off peak forcing it to become a buyer during overnight to provide energy to its customers.
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The Power Ledger network hopes to marry this mismatch up in addition to micro markets such as in neighborhoods through the expansion of the network and future adoption. As an example, in a neighborhood there may be a handful of home owners with solar arrays. If the occupant is at work most of the day during peak production they may not use all solar produced. The Power Ledger network would allow the excess energy to be marketed to neighbors for purchase using Sparkz tokens which are then sent to the home owners digital wallet. Those same tokens can then be used to purchase energy overnight or cashed out for fiat currency in the local denomination of the network.
The Path Forward
Currently, Power Ledger is testing in multiple micro markets around the globe in addition to partnerships in Australia. The Origin Trial was set to run from Oct 2017 for 3 months with results shortly after. This places results soon from this hotly anticipated trial and should be the biggest news on the short term for the company. Recently, Power Ledger was a top 3 finalist in the prestigious Extreme Tech Challenge XTC2018 competition and will now pitch their business to Richard Branson later this year giving exposure both for POWR investors and eccentric billionaire Richard Branson.
As part of the next-generation blockchain economy, Power Ledger (POWR) seems well positioned with Ripple (XRP), Stellar (XLM) and Cardano (ADA) to upend a multi-billion dollar market through the use of the Ethereum blockchain. With news on the horizon we could see Power Ledger move higher from the current #68 on coinmarketcap with a value at just under $400 million and $1.06 per POWR token.