Crypto data mining is big business. The continuous blocks provide incentives to people from all over the world to participate, let alone, the substantial benefits to industry. No requirement for third-party verification, increased transparency, and security.
However, as expansion continues, the demand for energy increases. The Bitcoin Energy Consumption Index illustrates the relationship between the growth of digital currencies and energy requirements, in terawatt hours (TWh).
Bitcoin Energy Consumption Index
As the majority of electricity production is coal based, results are of concern. In the brief period from Feb-17 to Jan-18 energy consumption has increased five times from 10TWh to 50TWh. Placing into some context, this is the equivalent to powering the whole of Hong Kong. The question of sustainability is a real issue, especially when interest in the technology continues to advance.Last year the energy consumption increased five times from 10TWh to 50TWh. This is the equivalent to powering the whole of Hong Kong. Learn how @WePowerN solution is a key driver for climate change mitigation Click To Tweet
The counteract is to focus on production methods of electricity. Today, the bulk of electricity production is carbon intensive. Mitigating to cleaner energy sources such as renewables will have a considerable impact on the consequences of increasing energy demands in the digital currency space.
Current state of clean energy investment
According to Bloomberg New Energy Finance (BNEF), renewable infrastructure investment in 2016 declined by 23% on the previous year. Q3 and Q4 of 2017 saw a slight reversal, nonetheless, underwhelming. The graph splits investment by geographical region, Asia Pacific (APAC), Europe, Middle-East and Africa (EMEA), and North, Central and South America (AMER).
New Investment in Clean Energy by Region, 1Q 2014 – 3Q 2017 ($BN)
The declining global trends in renewable energy infrastructure investment demonstrates the bleak prospects. Not helped by rolling back of government subsidies and the difficulties in obtaining project finance. However, one startup is in the early stages of combining energy producers with investors and consumers, through digital tokenization.
The need for Wepower
WePower enables renewable energy producers to raise capital by issuing their energy tokens also known as Wepower (WPR) tokens. These tokens act as real energy which the producer commits to deliver. The tokenization process is broken down into the Wepower explainer video.
Energy tokenization will reshape the existing energy investment ecosystem. As a result, energy producers can trade directly with the green energy buyers (consumers and investors), and raise capital by selling energy upfront at below-market rates.
In essence, energy tokenization with an open, decentralized database opens up renewable infrastructure investment to a broader pool of investors. An open platform eliminates the difficulties in sourcing local investment. WePower estimate that the simplification of financing renewable investment will reduce finance costs, thus, eventually passed onto producers/consumers.Today @WePowerN #ICO launched - with a cap of $40m! This is @Sbootcamp first #ICO and biggest in-program raise. Click To Tweet
WePower has a number of partnerships in the pipeline. Elering, an electricity transmission operator, is launching a pilot project to tokenize Estonian energy nationwide. The collaboration with 220 Energia, an electricity retailer, operating in Estonia, Latvia and Sweden allows WePower to expand the platform. This essentially means having the ability to trade energy not only with large renewable producers but, also households. Not to mention, being accepted on our accelerator program Startupbootcamp Energy Australia.
Ultimately building strategic partnerships will increase awareness of the value of energy tokenization to the energy industry at large.
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— WePower (@WePowerN) February 1, 2018