Global energy solutions company Energi Mine has announced the launch of its blockchain-based platform which is designed to incentivise energy conservation with digital currency.
Aiming to decentralise the reportedly $2 trillion global energy market, the company is releasing a new digital token, ETK, which will be at the core of Energi Mine’s energy efficiency reward system.
According to a company release, The current electricity market approach encourages energy companies to sell as much energy as possible, at the highest price possible. It’s a broken and even dangerous approach in a time when the perils of climate change are increasingly evident. Recognising this paradox, Energi Mine will instead encourage consumer and organisations to reduce energy consumption, by issuing ETK tokens to reward energy efficient behaviour, such as taking public transportation or buying energy-efficient appliances."
ETK tokens will have a market value, which may be redeemed on the Energi Mine platform to pay for energy bills, electric vehicle recharging or exchange for fiat currency. [According to Wikipedia, fiat money is a currency without intrinsic value established as money by government regulation or law - Ed] For example, local city transit authorities, such as Transport for London, would encourage commuters to use public transportation instead of gas-guzzling alternatives by rewarding them with ETK tokens. Once earned, commuters can either cash in their ETK or trade the token directly with the transit authorities to pay for their trip.
“The energy sector needs a bold, new solution, and the [this] blockchain-platform is it,” said Omar Rahim, CEO of Energi Mine.
“Existing energy incentive programmes have been met with limited success, because they do not reward good energy practices or increase competition among energy suppliers to drive down prices. Energi Mine does both.”
In most electric power markets today, energy produced by a consumer generator that exceeds what that consumer needs is sold back to the power supplier at a rate determined by the power supplier. However, with this decentralised platform, excess energy can instead be sold to a different consumer at transparent market rates.