Swytch, a blockchain-based clean energy project, in collaboration with a decentralised energy retailer Energy2market GmbH (e2m), has launched a pilot of the first blockchain and clean energy initiative in Germany.
The trial includes around 3.5Gw of solar, hydro, biogas, and wind energy capacity which is capable of powering more than 500,000 homes. Under the program, the companies will be testing the new platform, including the first versions of the estimators, dashboard, data flow, and token allocation models.
Based in Austin, Swytch aims to change the way people produce and consume energy. The company offers a blockchain-powered platform that tracks and rewards organizations and people who make sustainability efforts to reduce worldwide level of carbon emissions. By generating clean energy, producers issue Swytch utility tokens.
The solution is based on an open-source “Oracle” that uses artificial intelligence and machine learning technology to trace how much carbon is emitted and determine the amount of tokens to award. Thus, Swytch will serve as an incentive for producers to generate solar, wind and other forms of renewable energy.
“We firmly believe that blockchain technology can be used to unlock long-term value for Europe’s renewable energy assets,” said Andreas Keil, CEO of Energy2market. “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 is the leading energy trading company in Europe, specializing in managing and optimizing diverse portfolios of generators, consumers, suppliers and grid operators. With a Virtual Power Plant and a 24/7 trading team, the company can aggregate power from decentralized generation and consumption systems and trade it in real time.
By partnering with Swytch, e2m will be able to leverage the benefits of the blockchain technology and get information about existing incentive programs. The company believes that Swytch can urge governments, corporations, cities, and people to take part in driving 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 Evan Caron, co-founder and managing director of Swytch.
“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.”
At the moment, Swytch is running a token generation event that will be closed tomorrow, on July 11, 2018.