Swytch pilots blockchain in German renewables market
June 19, 2018
Texas-based clean energy company Swytch is helping Germany’s Energy2Market (E2M), a specialist in aggregated energy trading throughout Europe, implement a 3.5GW blockchain pilot.
The pilot programme includes roughly 3.5GW of solar, wind, hydro and biogas energy capacity in Germany, which is enough to power more than 500,000 homes. As part of the large-scale pilot, Swytch is testing its first versions of the data flow, blockchain, dashboard, estimators, token allocation models and other key parts of the platform.
Swytch also announced its public token sale. Swytch is a blockchain-based platform that tracks and verifies the impact of sustainability efforts and actions on the worldwide level of CO2 emissions.
Swytch uses smart meter and blockchain technology to reward the companies and people who reduce carbon emissions the most. At the core of the system is an open-source oracle that uses artificial intelligence and machine learning to determine how much carbon is being displaced and therefore how many Swytch tokens to award. As a result, producers of renewable energy create Swytch tokens by generating solar, wind and other forms of renewable energy.
E2M perceives Swytch's approach to tokenised incentives in the energy market as particularly attractive to the larger energy producers and traders it serves.
"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 E2M. "Today, renewable energy represents 32 per cent of the total energy market in Germany, but we have a goal of reaching 70 per cent by 2050. Government-based incentive programmes can only do so much, and a more dynamic option is needed. Additionally, some countries, like Germany, will begin phasing out their incentive programmes in the next few years. We need to prepare for the future and identify new subsidy instruments and trading mechanism."
This partnership will allow E2M to gain insight into alternatives to existing incentive programmes and leverage blockchain, which has security and immutability, making it a suitable technology to help reshape an industry that relies on timely and accurate data.
Additionally, E2M believes that Swytch, as a global incentive programme and data source, has the ability to empower governments, cities, corporations and individuals to take a more active role in accelerating the adoption of renewable supply and sustainability programmes. A partnership with Swytch could create a competitive advantage as buyers and sellers of energy gain access to higher quality data in addition to an incentive that could be effective across geographic barriers.
"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 programmes, 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."
As an independent trading company operating throughout Europe, E2M specialises in managing and optimising dynamic portfolios and marketing the flexibility derived from decentralised generation and consumption systems. With a marketed generation capacity of renewable energy of more than 3500MW in Germany, it is in that region one of the biggest providers of market access services. It has the infrastructure required for marketing flexibility as well as access to all German and international trading markets. The firm has subsidiaries in UK, Poland, Austria, Italy and Scandinavia.