Swytch, a blockchain-based clean energy project has partnered up with e2m, a decentralized energy retailer, to launch a pilot which will be the first blockchain and clean energy initiative in Germany. The pilot will offer energy producers and traders access to a tokenized incentives program that aims to cut costs and eradicate fraud.
The trial makes use of 3.5Gw of solar, hydro, biogas, and wind energy capacity with which more than 500,000 homes will be powered. During the program, the platform will undergo many tests run by the companies, comprising of the first versions of the estimators, dashboard, data flow, and token distribution models.
Swytch’s goal is to change how energy is produced and consumed. The company developed a platform built on top of a blockchain, which has the role of tracking and rewarding organizations and people who want to decrease the total amount of carbon emissions. By producing clean energy, the companies make Swytch utility tokens.
The pilot uses an open-source “Oracle” code that employs artificial intelligence and machine learning technology to calculate the quantity of emitted carbon and establish how much tokens will be awarded. Accordingly, Swytch will act as a motivating factor for producers to produce solar, wind and other systems of reusable energy.
“We firmly believe that blockchain technology can be used to unlock long-term value for Europe’s renewable energy assets,” said the CEO of Energy2market Andreas Keil.
“Today, renewable energy represents 32 percent of the total energy market in Germany, but we have a goal of reaching 70 percent by 2050. Government-based incentive programs can only do so much, and a more dynamic option is needed. Additionally, some countries, like Germany, will begin phasing out their incentive programs in the next few years. We need to prepare for the future and identify new subsidy instruments and trading mechanism.”
e2m (Energy2market GmbH) is Europe’s leading company in energy trading, specialized in managing and enhancing various groups of generators, suppliers, consumers, and grid operators. By employing a Virtual Power Plant and a 24/7 trading team, the company can supply power from decentralized generating and consumption systems and make it available for trading it in real time.
Through this collaboration, Swytch and e2m will have the possibility of leveraging the benefits of blockchain technology and receive information concerning existing incentive programs. The company thinks that Swytch can determine governments, corporations, cities, and citizens to get involved in increasing the use of sustainability programs.
“Just as blockchain is applicable to supply chain management and verification of physical assets, it is also beneficial for recording and tracking environmental attributions,” said the co-founder and managing director of Swytch, Evan Caron.
“When compared to existing programs this will drastically reduce fraud and administrative costs as well as open up incentive mechanisms to residential properties, which are the key to accelerated adoption of renewables. This positions Swytch as a central player in the global grassroots movement to reduce carbon emissions.”
Currently, Swytch is holding a token generation event that will end tomorrow, on July 11, 2018.