Marubeni to develop a renewable energy procurement and trading platform using blockchain

On July 5, Marubeni < securities code :  8002> announced that it had signed a convertible loan agreement on July 1, 2019 with the start-up company WePower UAB, which is developing a renewable energy procurement and trading platform.

 

According to the announcement, WePower—incorporated in the Republic of Lithuania in 2017—is developing its platform using blockchain technology to enable commercial and industrial energy consumers (“C&I consumers”), who wish to procure renewable energy, to easily execute power purchase agreements (“PPAs) directly with renewable energy developers by matching them through auctioning.

 

The platform is expected to reduce the time and cost associated with executing PPAs and enable C&I consumers to quickly procure renewable energy at competitive prices. They can also enjoy more flexibility in energy procurement by selling surplus energy on the secondary market if their consumption volume changes in the future. The platform will also benefit renewable energy developers by providing them with a secure, stable revenue source as an alternative to other renewable energy incentive schemes, such as feed-in-tariff.

 

WePower is currently focusing on business development and commercialization in Australia, but is also planning to expand its business in other countries and regions. In the announcement, the company stated: “Marubeni will contribute to expanding and enhancing renewable energy development by supporting WePower’s global business expansion.” Marubeni also stated its future vision: “Marubeni will continue to facilitate partnerships with start-up companies in order to create new value and to provide solutions for social issues beyond the existing framework of industry.”

 

*This article was written by Fisco