With many of the world's population being into emerging markets such as Asia and Africa, developing a roadmap for those economies for sustainable access to energy and electrification will be a critical part of any sustainable and decarbonised energy goal.
In our previous introductory article on the Power Blockchain, we discussed the impact of Power Blockchains on the energy markets and identified 5 opportunity themes. This article discusses the Emerging Markets theme and associated systems.
Development in Photovoltaic and Distributed Micro Generation technology have been the most effective approach in increasing energy access in emerging markets. This has been largely driven by economics and levelized cost of energy. China has had a substantial investment in clean energy development. In 1990, about 73% of the global population had access to electricity. In 2014 this increased to 85% and this trend is continuing.
However, in many emerging markets access to electricity remains unreachable due to lack of grid infrastructure and government funding. The main barrier for investment in providing a grid along with energy generation capacity is the lack of a marketplace to allow a return on investments in the assets.
For example, investments in energy generation and a grid will not yield a return if there is no market to monetise the energy flow from generators to consumers. Power Blockchains combined with other technologies will provide the platform to monetise and produce a return for investors. This can take many forms, from Power Blockchain Trading Platform on the revenue side of the equation to capital raising for new projects investments.
The main challenges of Power Blockchain adoption in the emerging markets will be access to adjoining technologies such as communication network infrastructure and capital. However, with global internet access growing faster than energy access rates and Power Blockchain providing a pathway for capital flow, the challenges can be resolved. After all, access to electricity and reliable power is a compelling reason to explore these options.
Atlantic Power Exchange is building a multichain platform with interoperability that can help the Electric Vehicle market accelerate its market penetration and further reduce the carbon footprint within the transport sector.