Elering is developing a smart grid platform based on an existing
data exchange layer, dubbed Estfeed, to enable efficient market dynamics in its
electricity and gas networks.
“This announcement is very exciting for us because WePower is the
first developer outside of Estonia to join the Estfeed platform and confirms
our vision that giving access to live data is the best way to test and develop
new technologies not only on the blockchain, but for the smart grid in Europe,”
Taavi Veskimägi, CEO of Elering, told Distributed. “We do this not just
for ourselves, but for society in general to work toward a smarter and greener
WePower wants to enable buyers to purchase green energy directly
from producers at below-market rates using Ethereum-based smart energy contract
tokens. According to WePower, energy tokenization ensures liquidity and extends
access to capital.
“The goal of the WePower platform is to bridge traditional energy
producers and the crypto world together,” Kaspar Kaarlep, CTO of WePower, told Distributed. “Building new infrastructure for
green energy production is expensive and that is why our energy trading
platform will help provide the financing and framework to make this possible.
Our goal is to work with the energy market as well as renewable energy
producers to evolve the smart grid, not disrupt it.”
Future evolutions of this project, which according to Elering and
WePower is the first of its kind in Europe, could connect European green energy
producers to the Estonian smart grid.
WePower will integrate its blockchain-powered green energy trading
platform into Elering’s Estfeed data exchange platform. A WePower blog
post informs that this pilot project will tokenize an already-functioning
energy supply ecosystem. The WePower
white paper describes how renewable energy producers will be able to tokenize
and sell energy. For example, a renewable energy producer connected to the
platform will be able to issue its own WPR energy tokens, each representing 1
kWh of green energy to be produced in a certain time in the future, and to
auction tokenized energy to the highest bidders, with priority given to
existing WPR token holders.
Legally, WePower acts as an independent energy supplier, allowing
the WePower platform to be connected to the energy grid and the local energy
exchange market as well as energy end users. According to the white paper,
WePower has the potential to become a next-generation utility company,
combining blockchain technology, smart contracts, data analytics and machine
learning to achieve its core objectives of decarbonization, democratization and
decentralization of energy markets.
According to WePower, the pilot project with Elering “will serve
as another strong case for governments across the globe on how innovation can
help improve infrastructure and systems used by citizens across their nations.”