Casting our minds back to the early 2000’s, companies like eBay were revolutionising the retail market by eliminating supply chain intermediaries between manufacturers and consumers.
Despite its far reaching effects, predictions that eBay would eventually replace the conventional retail store have not been realised some 20 years later.
Contrastingly, over 15% of retail purchases currently occur through an online source because most retail businesses have incorporated an online strategy.
One important aspect of an online business strategy is data because the online purchase interaction is utilitarian. Consumers know what they want, search for that specific item on user friendly platforms, compare features with prices, and then complete their online purchase.
With a physical store purchase, the transaction reflects an emotional aspect which complements the consumer purchasing experience. Additionally, consumers browse for specific items within the physical store but also acquire incidental items they were not necessarily looking to buy.
Energy vs Retail
Drawing comparisons between Energy and Retail, there is little difference between the Watts, Volts and Amperes of energy producers and so the commodity marketplace is dictated by price as the primary differentiator.
With the rise in social responsibility and environmental awareness, a new element of consumer choice has been added into traditional energy markets. And increasing consumer demand for clean energy solutions is driving renewed innovation and investment.
With the proliferation of distributed resources such as rooftop solar panels and battery storage, the sources of energy production have increased significantly giving way to community sourced clean energy solutions.
The missing element has been enabling technology to allow prosumers and consumers to trade openly and transparently.
We can draw similarities between the impact of Blockchain across the energy marketplace to the impact of the internet and eBay across the retail industry.
Blockchain will allow prosumers to trade with consumers in a price-driven marketplace devoid of third-party intermediaries and the distribution of clean energy producers will continue to increase.
While Blockchain will allow free flowing economic benefits by alleviating price pressure, an important aspect will be the genuine trade transparency that Blockchain provides.
Consumers will have a choice in acquiring their power from accredited clean energy sources and Blockchain will provide the assurance of social responsibility along with affordable energy prices.
Furthermore, this will allow geographical benefits of investment between local communities positioned at the edge of energy grid infrastructure and alleviate the need for significant government infrastructure investment between centralised cities with dense populations.
Atlantic Power Exchange
At Atlantic Power Exchange, we are redefining our energy marketplace by using distributed ledger technology to provide the missing element with the primary objective of putting the power in your hands.
Our aim is to ensure that communities flourish with clean energy solutions.