Home / Coin Guide / What is Power Ledger (POWR)? A Comprehensive Guide

What is Power Ledger (POWR)? A Comprehensive Guide

Power Ledger is a blockchain-based platform whose strife is to completely transform the global energy space by capacitating local areas to sell and distribute solar energy to their neighboring community without the interference of third parties. To better understand this, imagine a world void of dependence on large utility organizations or foreign resources for all the energy required to run your life. Thanks to the Power Ledger blockchain-based project, such a world is bound to becoming a reality in the near future.

Deutsche Bank, in a 2015 report, indicated that not less than 30 countries globally have thus far reached grid parity, the state where the price of solar-generated electricity is equivalent to or less than the cost of local retail electricity. By amalgamating innovations from both solar power and blockchain technology, Power Ledger proffers an unrivaled green energy solution that is not only cleaner but less costly and with more sustainability as compared to the conventional energy alternatives.

Company History and Accomplishments

Power Ledger’s contrivance was aimed at addressing 3 key challenges that are faced by the global energy system, as mentioned below:

  • To include individuals living in high-density housing in the distributed energy economy.
  • To change electricity networks to make an incentive for the connection of decentralized energy resources (DERs).
  • To mitigate the risk of connecting billions of dollars in network assets.

Power Ledger Technical Overview

The Power Ledger platform establishes p2p energy transactions by keeping track of both the generation as well as the consumption of all the participants on the platform in real time. Most noteworthy, the transactions entailing the generation and use of energy have predetermined rates.

How the Power Ledger Ecosystem Works

The Power Ledger platform operates on 2 blockchain layers and is fueled by 2 crypto coins namely; the Power Ledger Token (POWR) and Sparkz. Both of these crypto tokens are used to power the ecosystem and play various roles on both blockchains. The ecosystem implements Ecochain, a private consortium blockchain, as well as the public Ethereum blockchain.

  • POWR (the Power Ledger Token):

POWR enables application hosts and contributors to gain access and use the platform. Most significantly, in the event an app host does not have an adequate no. of the POWR tokens, it will not be in a position to access the platform. After an app host returns Sparkz to the ecosystem, the Ethereum Smart Bond gets unlocked. Consequently, the POWR tokens that had been previously locked on escrow are returned to the app host.

While the total volume of the POWR tokens is a million, the presently available supply of the tokens rests at just under 400K.

  • Sparkz:

The Sparkz tokens can be purchased and redeemed using conventional currencies (fiat currencies) within select cryptocurrency trading platforms that have closed-loop exchanges for energy and Sparkz. The app host uses the Sparkz tokens to onboard its clients. Basically, customers pay cash for Sparkz, which they as result exchange for electricity.

Most significantly, the total amount of Sparkz is variable. Sparkz tokens are produced based on the amount required, used, after which they are destroyed when redeemed. The price of Sparkz is tethered to a local government’s fiat currency and power cost. For example, in Australia, a single Sparkz token would be equivalent to 1 AUD (Australian Dollar).

Sparkz’ price ought to retain its stability, given that it is attached to a government-issued currency. There are a variety of blockchains for every different local currency to enable multiple fiat currencies from all over the globe to partake in the Power Ledger ecosystem at various prices.

Product & Traction

With VPP2.0 which is an expansion of virtual power plants and is at the moment still under development as one of their products, Power Ledger boasts 5 other key products as listed below:

  1. Asset Germination,
  2. C6 & C6+,
  3. xGrid,
  4. PowerPort, and

The above-mentioned products offer various energy solutions, the entirety of them on the blockchain. xGrid capacitates users on the platform to purchase and sell energy on the existing electrical grid via p2p transactions. With uGrid, on the other hand, just as is the case with xGrid, users are in a position to as well trade energy via p2p transactions. Be that as it may, with uGrid, unlike xGrid, the transactions are carried out on an existing microgrid or embedded network, for instance, within an apartment building.

PowerPort fosters transparency to Electric Vehicle charging, enabling users to select their preferred source for the power that charges their vehicle. C6 & C6+ implement blockchain technology to keep track of, as well as verify carbon credits. What’s more, smart contracts facilitate the trading of carbon credits. Lastly, Asset Germination offers a platform that monetizes the communities’ excess renewable energy.

Economics

POWR’s Presale sold out in a mere 3 days, in which case it came up with more than $13 million AUD in exchange for 190 million Power Ledger (POWR) tokens. Subsequent to the presale, Power Ledger carried out an Initial Coin Offering (ICO) to sell the rest of the 160 million POWR tokens allotted to TGE (Token Generation Event). Most noteworthy, following both rounds, that is the ICO and the TGE, a total of $34 million AUD were raised.

Also worth mentioning is with regard to the fact that the Australian Government, in addition, awarded Power Ledger an $8 million AUD grant to further the development of its technology and concept. Australia has one of the highest electricity costs globally and as such has a big stake in the overall success of the Power Ledger project.

On the 1st of November 2017, after its TGE, the POWR tokens were released for trading on major cryptocurrency exchanges for just about ten cents. From the time it hit exchanges, POWR had an imposing short-term bull run attaining a $2.10 USD all-time high in the 1st week of January 2018.

Since it attained its all-time high, POWR’s price fluctuated throughout the rest of the 1st quarter of 2018, hitting quite a number of more highs, for instance, $1.09 USD and $0.80 USD. In the recent past, the price of POWR has been lingering around $0.15 USD, a significant drop from its January 2018 peak. The negative price movement of the POWR tokens in 2018 has been largely attributed to BTC’s colossal downsizing since the beginning of 2018. On the assumption that VPP2.0’s launch is a success, there are chances we could witness an upturn in the value of POWR.

Where to Purchase POWR Tokens

So far, the POWR tokens can be purchased from, among others, such cryptocurrency exchanges as Digifinex, Upbit, Binance, and Huobi, just to mention but a few.

Where to Store Your POWR Tokens

Given that POWR is an ERC-20 Token running on the Ethereum blockchain network, the tokens have to be stored in cryptocurrency wallet that supports ERC-20, most preferably an Ethereum wallet. Consequently, MyEtherWallet is among the most renowned Ethereum wallets, owing to its appreciable reputation.

In comparison to software wallets, hardware wallets offer much better security. As such, hardware wallets provide the most secure means for shrewd investors to cache their crypto assets. The 2 most renowned and reputable cryptocurrency hardware wallets are Trezor and the Ledger Nano S. Modeled with ERC-20 support, both of these wallets can be used to store POWR tokens.

The Market Size

  • Stationary Energy:

Electricity is a vital enabler. The present electrification state of the universal population rests at 84 percent. Advanced and transitional economies necessitate secure access to contemporary energy sources, to fortify their development as well as growing prosperity.

In so far as third-world countries are concerned, the accessibility to affordable and steadfast energy is key to alleviating poverty, improving healthcare, increasing productivity, fostering competitiveness, as well as promoting economic growth.

Hundreds of millions of people have attained access to modern energy over the last 2 decades via distribution networks, particularly in such countries as India and China. The implication of this is that more people from all over the world are at the moment connected to the continuously growing and interconnected electricity networks.

This, as a result, contrives a massive appetite for innovative new p2p (peer-to-peer) platforms for energy transactions.

  • Non-Stationary Energy:

Besides the consumers of stationary electricity, being inclusive of houses, apartments, buildings, and factories, users of non-stationary electricity are driving up the demand for electricity across the universe.

The year 2015 saw the global threshold surpass a million EVs (Electric Vehicles) on the road, with the aggregate number closing at 1.26 million.

To service this crescive fleet, there was an approximated total of 1.45 million charging stations for electric cars globally in 2015.

Significantly, Electric Vehicles are projected to attain price parity with combustion engine cars by the year 2025. The latter is majorly attributed to not only the falling in the cost of batteries, but increasing fuel density as well. Consequently, highlighted below are the ranges of the deployment scenarios for the stock of Electric Vehicles (EVs).

  • Between 2 to 20 million EVs in use worldwide by 2020;
  • Between 18 to 60 million by 2025; and
  • Between 22 to 140 million by 2030.

The Team behind the Power Ledger Project

The Power Ledger project boasts a team with a lot of expertise as regards both blockchain technology and electricity markets. Notable members of the team include Dr. Bill Tai and Dr. Jemma Green, who is a co-founder of the project and its chair.

  • Jemma Green:

Dr. Jemma Green is a co-founder and chair of the project. She is vastly experienced in blockchain technology, AI (Artificial Intelligence), and energy. Other than Power Ledger, she is not only a board member at Water Corporation in Perth, Australia, but is as well the Chairman of Climate-KIC Australia, a group working on the innovation of solutions pertaining climate change. She is a holder of a Master’s degree in Sustainability Leadership from the University of Cambridge, as well as a Doctor of Philosophy (Ph.D.) with the Sustainability Policy Institute from Curtin University.

Her role in the organization entails providing strategic external relations, risk management, and leadership development. She boasts a long-standing career in finance that arches over more than 15 years highlighted with 11 years of experience in investment banking. What’s more, she as well holds a Ph.D. in Disruption.

  • John Bulich:

John Bulich is also a Co-Founder and the MD (Managing Director) of Power Ledger. He is additionally a Director at Ledger Assets, an organization that develops blockchain apps for power, asset sharing, medical uses, and photo validation. He formerly served as a Director at WA Property Investments for twenty-two years, working on portfolio management, securities trading, and property development.

  • David Martin:

David Martin, Power Ledger’s Co-Founder and MD, worked as a Director at Future Effect, an Australian-based energy company. He is a former Senior Executive of Horizon Power where he served as a General Manager.

  • Bill Tai:

Holding an MBA from Harvard, Dr. Bill Tai is a Global Ambassador and Advisor with Power Ledger. He is renowned for being a co-creator of the Blockchain Summit. He is as well a board member of the BitFury Group and Voxer. He has previously served as the Chairman of the Board for Treasure Data, a data pipeline and repository under Softbank’s ARM Corporation, as well as Hut8 Mining Corp, which is the biggest publicly listed cryptocurrency mining operation in North America.

On the whole, Tai’s experience is rather intensive. He is a world-renowned venture capitalist and has worked as a Board Director for 7 publicly listed organizations that have seen growth from startups that he funded. He is as well part of the World Economic Forum’s Technology Pioneer Committee, besides being an Adjunct Professor at Curtin University.

  • Marc Van Hoof:

Marc Van Hoof, the organization’s COO (Chief Operating Officer), is an investor who is at the moment engrossed in such organizations as Revl, Inc., and Breathometer. He is as well a Board Advisor with Law Advisor, which is an online service for individuals seeking legal advice or a lawyer. He worked for Cisco as a Product Manager in 2005.

The entire Power Ledger team comprises of approximately thirty members.

Power Ledger Notable Partnerships

The Power Ledger team has been working around the clock to form a number of commercial alliances with entities outside of the blockchain space.

  • Clean Energy Blockchain Network:

Clean Energy Blockchain Network is an off-shoot of Power Ledger whose focus is on the mainstream adoption of the Power Ledger Platform in North America. The group keeps their own team as well as advisors independent of Power Ledger and has affiliations with such notable organizations as Microsoft Azure and IBM Blockchain. The group was the driving force behind the first North American deployment of Power Ledger at Northwestern University.

  • Greenwood Solutions:

Greenwood Solutions offers energy solutions to industrial, residential, and commercial clients. The organization joined forces with Power Ledger to particularly deploy the Power Ledger Peer-to-Peer energy trading platform in Burwood, a suburb of Melbourne, Australia. Via the deployment of solar panels, the alliance hopes to make it possible for the community to monetize their extra energy.

  • KEPCO (Kansai Electric Company):

KEPCO is Japan’s 2nd most established electricity utility company. Power Ledger’s alliance with KEPCO is aimed at trialing Peer-to-Peer energy trading in Japan from ten initial residences in Osaka, granting Power Ledger the opportunity to demonstrate why its platform has more flexibility and is more robust as compared to extant standards.

Power Ledger’s other notable alliances are inclusive of a three-month trial carried out with Origin, a renowned Australia-based energy company, as well as a 1 year trial with Tech Mahindra. Headquartered in India, Tech Mahindra explores Microgrid-as-a-Service platforms. The team is as well working alongside Silicon Valley Power, a municipal utility organization run by the City of Santa Clara, CA, to put into trial the Power Ledger platform as regards recording carbon credit transactions and managing energy utilized in an Electric Vehicle charging facility.

Power Ledger Notable Competitors

Restart Energy Democracy is a vastly established European producer of solar cells. The group has instigated a blockchain platform to operate as an energy franchise sales company. They aim to onboard energy producers who then sell directly to consumers through the platform.

SNC is  an energy-trading platform for buying and selling electricity, similar to Power Ledger. SunContract is currently focused on the Slovenian market through the SONCE group, a major Slovenian energy company.

ELEC is the first retail electricity marketplace in Southeast-Asia addressing the need for transparency and security in the consumption of energy. They are developing a platform to allow anyone to source energy (renewable and non-renewable) from commercial energy suppliers or to buy directly from a private producer.

GRID is a Consensys-affiliated project leveraging the Ethereum network to find wholesale electricity prices and offering energy to consumers. One GRID token is pegged to 500 kWh of electricity, and GRID+ takes a small premium on top of the wholesale prices for revenue. It offers asset trading beyond just electricity through the Lattice1 wallet. While Power Ledger works to incorporate its platform into existing utility networks, GRID appears to be focused on disrupting the utilities market, buying energy themselves and selling it at a better price than commercial rates.

WePower  is a crowdfunding/financing platform for renewable energy projects, which gives participants the opportunity to raise capital by selling future energy production.

Future Projects and Roadmap

Power Ledger has given a comprehensive list of its objectives for the coming 2 years. The organization has already signed an agreement to bring its technology to Europe in 2019, in which case, the Liechtenstein Institute for Strategic Development will become the first European Application Host to implement Power Ledger’s p2p energy trading platform in Europe.

What’s more, Power Ledger concluded a number of agreements that will bring its platform to Asia in the next year as well. Indian based Tech Mahindra has additionally sealed a deal with Power Ledger to settle microgrid transactions.

Achievement Timeline

Founded in May 2016, Power Ledger has realized a number of significant milestones in so short a period. In August 2016, Power Ledger developed and trialed Australia’s first energy trading blockchain network. Shortly after, the company made its first international deployment by taking live its p2p blockchain-based energy trading platform across a distribution network in New Zealand.

In the second quarter of 2017, Power Ledger developed and deployed a commercial energy management system that capacitated the transparent distribution of locally generated recyclable energy to tenants in multi-unit departments. Power Ledger has successfully implemented pay for the use of solar-powered electric vehicle charging units into various Australian developments. In the most recent past, Power Ledger has come up with the first p2p energy trading trial in Bangkok, Thailand with BCPG, the energy developer.

Conclusion

Power Ledger offers a blockchain-based marketplace that has the capacity to truly revolutionize the world. By taking power away from big energy organizations, the project grants local communities the power to sell their excess solar power to their neighbors. The organization has come up with an energy distribution and tracking ecosystem that capacitates consumers to purchase carbonless, viable energy at significantly reduced prices as compared to what conventional electric companies offer.

Power Ledger aspires to broaden its operations to 3 continents globally and has garnered an army of powerful strategic alliances to help realize its objectives. With the scheduled release of multiple apps for its platform in the immediate future, Power Ledger has positioned itself to disrupt various energy markets throughout the globe, and as such contriving a future that is bright for all partakers involved in this green revolution.

Power Ledger Rating

Tech - 9.6
Economics - 9.5
Team - 9.8
Market Opportunities - 9.7
Product - 9.8

9.7

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