Saudi Arabia's ACWA Power to adopt Solarcoin

17/01/2018 05:53 AST

The usage of blockchain technology will offer an untapped opportunity for the power generation sector, Saudi-based utility company ACWA Power said on Tuesday as it announced the adoption of Solarcoin.

Solarcoin is a blockchain-based digital currency that aims to incentivise global solar energy production by disbursing digital coins to verifiably produced solar energy, rewarding energy producers with digital tokens at the rate of 1 Solarcoin (SLR) per 1 MWh of solar energy produced.

"We are always looking for ways to adopt new technologies to add value and reduce cost in all that we do and blockchain technology in our view offers a yet untapped opportunity for the power generation sector. Now through Solarcoin, we are able to utilise blockchain technology in one way to create value to renewable energy generation," said Paddy Padmanathan, President and CEO of ACWA Power in Abu Dhabi during the World Future Energy Summit. Solarcoin uses an ultra-low carbon blockchain technology called proof of stake time to maintain the open source ledger system, which is significantly less energy intensive than methods used by other crypto currencies like proof-of-work.

As the price of solar coins appreciate, through more users agreeing to accept Solarcoin for transactions, it can become an additional and relevant revenue stream for solar power producers, resulting in an incentive for solar energy investors to install more generation capacity.

"Awarding coins to solar energy producers such as ACWA Power provides an incentive to continue to invest in solar capacity. We hope to see further adoption of Solarcoin in the region, with the aim of building a strong community and spurring a global market for renewable energy investment," Nicholas Gogerty, Founder of Solarcoin Foundation said.

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