Worldwide, energy markets are subject to economic friction arising from centralised control and ownership. Power prices are often set artificially high in markets with high barriers to entry or are capped low to force out competition. Neither of these scenarios are beneficial to energy consumers in the long run. Blockchain technology—a decentralised, encrypted ledger that is maintained by a network of computers— with smart contract functionality strengthens the market role of individual consumers and producers by enabling them to buy and sell energy directly, with a high degree of autonomy.
ELECTRIFY’s mission is to make energy transactions fully accessible through the development of a decentralised energy exchange and trading tools for individual consumers and producers. By ensuring transparency, assurance, and enforcement, blockchain technology enables the delivery of solutions that empower consumers to contract directly with the source of their power with full cost transparency, and even become producers themselves. The use of token mechanisms will help incentivise the community to take ownership and make decisions that promote public good. Finally, blockchain will also support the transition toward sustainable energy systems by enabling distributed renewable energy asset owners to plug into the grid and sell their surplus power directly to consumers.
In the short to medium term, it is unrealistic to completely eliminate centralised utilities and rely solely on decentralised energy sources. We believe that a balance can be struck between both extremes that offers an optimal position for a consumer’s benefit and promotes transparent pricing from centralised utilities. In the future, we believe that the community can become more collaborative, self-sufficient and transparent.
Decentralised ownership of the ELECTRIFY ecosystem and its open-source tools will result in the eventual disintermediation of rent-seeking utilities, resulting in a more even distribution of benefits and utility. We envision that the community will run and make decisions for the ELECTRIFY ecosystem that are inclusive, sustainable and beneficial to the community at large.