(MENAFN- Khaleej Times) The energy sector is in the early stages of adopting blockchain and tokenisation to create a more sustainable and environmentally friendly industry. Blockchain technology can be utilised for various purposes, such as energy administration (collection and accounting of production data) and investor engagement.
By simplifying processes and reducing energy usage, blockchain can help lower emissions and make the energy sector greener. As the industry becomes more familiar with the potential applications of blockchain technology, it is expected that its integration will lead to further environmental benefits.
Khaleej Times spoke to Peter Bahorecz, chief networking officer, SunMoney Solar Group, to understand how the nascent technology can help secure a greener future. Excerpts:
Is the renewable energy industry is on the verge of a transformation?
The renewable energy industry is indeed on the verge of a transformation, and one of the growing drivers is the emergence of blockchain technology and artificial intelligence. These advancements have the potential to significantly change the way energy is produced, distributed, and consumed, leading to a more sustainable and efficient industry.
How can we create wealth while helping to save the planet?
Creating wealth while helping save the planet can be achieved through initiatives like community solar power programmes such as ours. The main aim of our community solar power programme is to get people to care for the environment knowing that they can actually make money doing it. As the community grows, more solar farms are included in the programme, and more shares are purchased by members, resulting in increased monthly income for participants. This situation promotes both financial growth and environmental preservation, making it an attractive option for those looking to support a sustainable future. Such a programme encourages people to invest in environmentally friendly projects that align with their financial interests.
How is the energy sector using blockchain and tokenisation to benefit the environment?
We, at SunMoney Solar Group, are taking one of the first steps in this area. Unfortunately, many in the industry do not yet know how much blockchain technology can be integrated and the potential it holds. Peter Bahorecz, chief networking officer, SunMoney Solar Group
How would you describe the move towards renewable asset tokens?
The move towards renewable asset tokens can be seen as a good step to protect savings against inflation. For instance, our tokens, the SDBN1 and SDBN2, can be considered as deflationary tokens since they have a limited issuance, ensuring stability and returns by continuously improving technology and adapting to market trends. Investing in renewable asset-backed tokens offers a hedge against inflation while supporting the growth of renewable energy sources.
How critical are tokens in the crypto market today?
Tokens have become increasingly critical in the crypto market today. However, many crypto projects are based on vision rather than tangible assets. In contrast, tokens backed by real solar power plants, such as SunMoney Solar's offerings, provide a steady pay-out to token holders, making them more stable and reliable investments in the volatile crypto market.
Is there a specific reason/advantage why SunMoney Solar decided to move to the blockchain platform?
SunMoney Solar decided to move to the blockchain platform for several reasons. Our community solar power programme and business model have been in operation for nearly a decade. We recently introduced a new product in 2021 that integrates the community solar plants programme with AI-powered online marketing to expand awareness and amplify the growth of the programme. This new programme has also been designed keeping crypto investors in mind. We have incorporated three popular trends - solar energy, AI-powered online marketing sales systems, and blockchain technology. With the combination of this trio, we were able to set our company on a new trajectory.
How is this working in the UAE?
The UAE has been a pioneer in the adoption of blockchain and cryptocurrency. In 2020, it became one of the first countries to introduce legislation allowing for the use of digital assets for energy trading. This move has opened up a number of opportunities for both local businesses and international investors. Furthermore, the government is making strides to ensure that blockchain technology is used responsibly within its borders by creating frameworks that promote a suitable environment for users, developing regulations surrounding crypto investments and operations, as well as introducing measures aimed at combating fraud and money laundering. The UAE aims to become a leading destination for cryptocurrencies either regionally or globally and we share this goal to establish ourselves as a pioneer in renewable energy for the crypto market. We are pleased to contribute towards promoting and increasing awareness about renewable tokens, both through conferences and in-person consultations.
How does an asset-backed, value-creating cryptocurrency token differ from a traditional cryptocurrency token?
Asset-backed, value-creating cryptocurrency tokens differ from traditional cryptocurrency tokens in several ways. The primary focus of these tokens, such as SDBN tokens, is not on the exchange rate but on providing a stable, steady income stream similar to dividend-paying stocks. This approach aims to reform the crypto market by offering stability, reliability, and the benefits of blockchain technology, setting them apart from more speculative investments commonly found in the crypto space.