Elering AS, an independent electricity and gas system operator in Estonia, and WePower, a blockchain based green energy trading platform that aims to drive global green energy adoption and promote sustainable living, have announced a pilot project to test the large-scale tokenization of Energy data on the blockchain in Estonia.
This project is the first of its kind in Europe and will pave the way for a future practical test that will connect European green energy producers to the Estonian Smart Grid.
To achieve this, WePower will integrate its blockchain and smart contract powered green energy trading platform into Elering’s Estfeed data exchange platform. This will form a proof-of-concept system for Estonia, demonstrating nation-state scale tokenization of energy consumption and production data on the blockchain.
This system will be first of its kind, enabling concrete steps towards a global blockchain powered energy trading. This will make energy trading accessible to prosumers of all sizes and configurations.
WePower will be leveraging Estonia's existing advanced smart grid infrastructure, particularly the 100% smart meter coverage with hourly reading and a central data hub. These are the ideal technical conditions to test the true scalability for tokenized asset trading technology and provide a stronger bridge between green energy producers and traditional grid operators.
“We are thrilled to announce our partnership with Elering AS,” said Nick Martyniuk, Co-Founder and CEO of WePower, “as it is the first step in our goals of making the smart grid greener. Estonia is the perfect country to start with, as it already has an existing advanced smart grid infrastructure that we can integrate our technology into.
"This partnership is an excellent use-case to show the viability of blockchain technology in the green energy space, and marks a huge achievement towards creating a global blockchain powered energy trading network."
When it comes to the uptake of blockchain technology in the energy space, a more cautious approach is suggested by Dr. Pavel Kravchenk, who holds a PhD in technical sciences and is the founder of Distributed Lab. Dr Kravchenk believes the market needs to be aware of two potential obstacles when it comes to blockchain.
The first relates to potential access to any asset for anyone in the world. There is currently a lack of regulatory framework to guide opening an account, the purchase and sale of an asset.
The second challenge to tokenization involves the lack of existing infrastructure and standardised approaches. Organisations that manage these assets tend to create their own tokenisation, accounting and reporting systems. The use of a standard system will ensure greater predictability, reliability and easy business integration.