As blockchain technology is finding more and more use cases across multiple industries, it is gaining popularity in vital areas of our daily lives that have tremendous impact on our well-being. The World Economic Forum, Stanford Woods Institute for the Environment and PwC recently reported 65 existing and emerging blockchain use-cases for the environment (Source: World Economic Forum). It seems that blockchain technology can prove itself as the key which will allow us to solve some of the most pressing problems of humanity such as man-made environmental hazards and pollution.
In the energy industry, blockchain technology has already found multiple use cases – from enabling Smart Grids and micro producers of renewable energy to decentralized energy marketplaces and much more. Furthermore, distributed ledger technologies have the potential to improve efficiencies for utility providers by tracking the chain of custody for grid materials (Source: Consensys). The traditional energy sector can further benefit from blockchain due to its potential to improve existing process inefficiencies, lower operating costs, reduce harmful environmental impact and introduce a whole new level of security to data exchange processes and transactions.
Blockchain technology can also be applied to energy trading. Not only does the immutability of distributed ledgers enable the creation of P2P decentralized marketplaces for energy trading – the use of blockchain technology can facilitate and track trades of traditional fuels and lower the cost of trading by up to 30%.
With the apparent benefits blockchain is bringing to the fold, some companies in the sector with a longstanding experience have started to research the technology and to develop their own blockchain solutions. LCG Energy, a licensed energy contractor, trader and electricity supplier on the German and Austrian markets, believes that blockchain technology will revolutionize the sector and open new horizons for all stakeholders in the industry.
LCG Energy: since 2009
The LCG Energy company was founded in 2009. After acquiring licensing by the German and Austrian Federal Network Agencies for Electricity, Gas, Telecommunications, Post and Railway, the company became one of the few independent electricity providers in German speaking region of Europe. Today, the company is serving the needs of over 50.000 customers in both Germany and Austria, has subsidiaries in 5 countries across Europe and a partner network of over 1.000 suppliers.
As an energy contractor, LCG Energy specializes in energy optimization solutions for its customers. Energy contracting is the process of the development and execution of energy efficiency projects in buildings or production facilities with the purpose to minimize the project cycle cost. With the help of Smart Meters and its vast industry expertise, LCG Energy has managed to achieve approximately 20% lower cost per customer.
The transition to energy contracting with blockchain
With the advent of blockchain technology, LCG Energy was quick to grasp on its potential benefits for the sector. Two years ago, the company started its own independent research and, shortly after, its work on a unique blockchain solution, which would allow it to improve the efficiency of their energy contracting activities even further.
By utilizing blockchain, LCG Energy found out that they can build a secure network of all Smart Meters in the grid, gather and process data and then secure it on the blockchain. Distributed ledgers will allow for better analysis of that data, which, in turn, will enable LCG Energy to implement advanced processing methodologies. As a result, further insights about the consumption of the customers will be gathered, which will allow the company to design more advanced, tailor-made energy efficiency solutions. What is more, with blockchain, LCG Energy will be able to implement a new system for the distribution of energy among stakeholders, which will be much more cost efficient compared to the existing mechanisms.
Beyond energy contracting – the LCG Energy ecosystem
LCG Energy plans to combine all aforementioned applications of blockchain technology in the LCG Energy ecosystem, which will also allow its participants to acquire a wide array of energy related-services and products. The LCG platform, which will be the heart of the ecosystem, will facilitate all transactions and give users the possibility to invest in renewable energy projects.
The company plans to establish the LCG token as a universal payment method for energy trading in Europe in the foreseeable future. Negotiations with several exchanges, as well as the development of the need software to bridge the connection between the LCG platform and the markets, have been initiated.
The LCG Energy ICO
LCG is a Utility token released on Ethereum platform according to the ERC20 standard.
- The number of tokens to be issued: 2,500,000,000 LCG
- Total for sale: 1,750,000,000 LCG
- Fiat currencies accepted: USD, EUR
- Cryptocurrencies accepted: Bitcoin (BTC), Ether (ETH)
The token sale of LCG Energy will be carried out in three stages: Private-sale, Pre-Sale, Main Sale. The company plans to dedicate 80% of the proceedings from the ICO to the acquisition of energy on the open markets and investments in renewable energy projects. This mechanism will protect the LCG token from price volatility, which is usually associated with utility tokens on the cryptocurrency market.
For more information about the LCG Energy project and the company behind it, visit https://lcg-group.de/ .