Blockchain: Funding Clean Energy to Fuel the Future
PR PROJECT FIN INANCING CHALLENGES • Project’s bankability • Power Purchase Agreement feasibility and financial health of off-taker/buyer • Risk of capricious government policies supporting or preventing renewable development • Political risk relating to contracts, permitting and land access • Currency risk leading to exchange rate hedging
BLOCKCHAIN APP PPLICATIONS FOR IN INVESTORS Environmental Crowdfunding & Microlending & Attribute Certificates Tokenization of Assets Microfinance & PPAs
WHAT IS IS BLOCKCHAIN
Dis istr tributed Led Ledger Tec echnology is an online • register that securely stores information Serves as a repertoire of knowledge • accessible to everyone Data is spread across multiple computers • rather than centrally managed Cryptography ensures information stored • cannot be changed or corrupted • Promotes transparency and the sharing of information Sm Smart t co contr ntracts ts are self-executing contracts • Terms of the agreement between buyer and • seller being directly written into lines of code.
CROWDFUNDING & TOZENIZATION OF ASSETS • Opening up investments to smaller institutional investors • Including small-to-medium sized assets (<5MW) • Pre-screened and approved investments Representing future asset ownership or rights to discounted electricity prices • Trusted and accredited investors • Lists viable renewables projects and provides the tools to assist in raising funds from potential investors. Proceeds of investments can be used (in the US) to pay utility bills Holds crowd-funded asset investment for a wind, solar or battery farms. Participants receive a portion of the asset’s profits upon sale, or the tokens may be traded for individual liquidity at any time
ENVIR IRONMENTAL ATTRIBUTE CERTIF IFICATES & POWER PURCHASE AGREEMENTS These environmental property rights contracts offer liquidity to projects as tradable financial instruments. Traditionally challenged by: High verification costs • • Difficulties tracking compliance and authenticity • Centralized reporting bottlenecks Lack of trust between buyer and seller • Limited data integrity and reporting for banks • Fraud and manipulation due to opaque nature of markets • By unlocking a trusted global market for environmental attributes, and by providing data monitoring the blockchain provides a secure revenue stream to generators, thereby increasing scalability of existing projects and providing financial incentives to develop new ones
MIC ICROFINANCE & MICROLENDING
“Blockchain provides the necessary trust for data ta sh sharin ing and creates liq liquid idit ity as s well as s accounta tabilit ity between energy buyers and producers.” - WePower’s CEO Ni Nick ck Ma Mart rtyniu iuk
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