U.K.-based Energi Mine today launched a blockchain-powered platform designed to decentralize the nearly $2 trillion global energy market by incentivizing energy conservation. The company has also appointed Lord Rupert Redesdale, former energy spokesman for the Liberal Democrats in the House of Lords, as an advisor.
According to the Advanced Energy Now 2017 Market Report from Advanced Energy Economy (AEE), the global advanced energy market exceeded $1.4 trillion in 2016, a seven percent increase from the revised $1.3 trillion in 2015. Advanced energy encompasses a wide range of technologies, products, and services that represent the most efficient and effective ways to meet energy needs.
Among the seven advanced energy segments, electricity generation remains the largest worldwide, generating $455.6 billion in revenue—up five percent from 2015. The remaining segments include building efficiency, advanced transportation, advanced fuel production, advanced fuel delivery, advanced industry, and electricity management and delivery.
Energi Mine, headquartered in Manchester, says the current electricity market model is flawed because it incentivizes energy companies to sell as much energy as possible at the highest price. The company currently manages over $140 million in energy on behalf of customers and serves approximately 1,100 customer sites across the U.K., France, Belgium, and the Netherlands. The new platform seeks to shift market dynamics by rewarding consumers and organizations for reducing energy use. It will issue ETK tokens to recognize energy-efficient behavior, such as using public transportation or purchasing energy-efficient appliances.
“Our AI and blockchain technology will plug into existing data feeds—smart meters or transport software—to verify energy-saving behavior has taken place,” said Omar Rahim, CEO of Energi Mine, speaking to CoinJournal. “We then help organisations build and manage their reward schemes in our infrastructure.”
ETK token holders will be able to redeem tokens within the Energi Mine ecosystem to pay energy bills, charge electric vehicles, convert tokens to fiat currency, or use them directly with transport authorities to cover travel costs. To streamline the process, users will receive tokens through a simple app provided in partnership with local transit authorities such as Transport for London. The platform aims to influence everyday choices by making energy-saving actions financially rewarding.
In addition to incentivizing reduced consumption, Energi Mine’s decentralized marketplace will allow consumers to sell surplus energy directly to others at transparent market prices, rather than surrendering it to power suppliers at rates set by those suppliers.
“The ultimate goal is, of course, to reduce global energy demand,” Rahim added. “It’s very difficult to change human behaviour and at the start of any movement it is necessary for there to be a financial reward. In the long term, wasting energy will become taboo—but we are not there yet.”