WePower : Green Energy Financing Through Blockchain

     WePower network offers an innovative solution by connecting green energy consumers, producers and investors through a blockchain platform. When a green energy producer wants to finance a new set-up, they can sell part of their to be produced energy as energy tokens. This allows them to receive the necessary equity capital for the projects and to increase the return of equity ratio by 25%. By buying the energy tokens, users are buying future energy at below market price. This will benefit users when the price of electricity increases in the future. The return of such investments varies from 15 to 20%.

     These energy tokens represent smart contract under which renewable energy producers are obliged to produce in a certain amount (kWh) at a given timeline in the future. Energy tokens will also contain information about the origin and type of green energy it represents (e.g solar, wind, hydro). These tokens can be easily traded on WePower platform.

     Contributors, who support WePower at a very early stage will receive WPR tokens, which will give a right to receive part of the energy tokens circulating within the platform as a reward. The real value of WPR tokens will grow as WePower expands and more renewable energy producers start using the platform. The WePower token model has also been clarified with the regulator, the model does not fall under financial regulations as the WPR tokens are not a financial instrument, instead, they are access to the reward which is the donated green energy.

     Moreover, the platform itself is not considered to be a trading facility. ‘The energy tokens and underlying smart contracts represent power-purchase agreements, which are moved to the digital medium. These agreements evidence how much energy must be provided to a particular person. Therefore, based on such power purchase agreement the objective of sale/purchase is the energy that will be settled physically. Following such technicality, tokens are not financial derivatives and the platform itself does not fall under financial law regulation as a trading facility,’ explained by Arturas Asakavicius, co-founder of WePower in his article.

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Written by Brad Chillum

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