A Spanish energy technology company is testing a new way to pay for cleaner energy, and it could transform the way renewable projects are financed around the world.
Turbo Energy has launched a pilot program, as Cointelegraph reports, to tokenize financing for solar and storage systems. Starting with an on-site installation at a supermarket, the project will use the Stellar Development Foundation blockchain to raise capital. The goal is to make sustainable energy more accessible and easier to build.
Alongside Stellar, Turbo Energy is developing the pilot project with digital asset company Taurus. Here’s how it will work: Instead of relying on traditional loans or large institutional investors, blockchain tokens allow many participants to finance a project by purchasing fractions of the debt. Each token represents a contribution to the installation – in this case, Turbo Energy’s Sunbox solar and battery system – that generates cleaner energy under a long-term power purchase agreement.
If the model works, it could streamline financing for commercial and industrial solar projects. This is important because the upfront cost is one of the biggest barriers for businesses wanting to transition to clean energy. But this opens the door to a wider pool of investors.
The pilot project is an example of energy as a service, now valued at more than $74 billion and expected to double by 2030, according to Grand View Research. With EAAS, customers do not need to purchase or maintain equipment; instead, they simply pay for the clean electricity they use.
This is an interesting pivot within the crypto industry, which has been heavily criticized for its environmental footprint. While proof-of-work models like Bitcoin use massive amounts of electricity – often tied to dirty energy sources – initiatives like this show some innovation towards environmentally friendly strategies.
We have seen similar efforts in the industry, such as Argo Blockchain mining cryptocurrencies with hydropower and Soluna building data centers near renewable energy farms. In fact, the Cambridge Digital Mining Industry Report found that Bitcoin now uses 52.4% of its energy from sustainable sources, up from 37.6% in 2022.
The reactions from those involved in the project have been enthusiastic. “We are combining real-world solar storage infrastructure with blockchain technology to create a path to new revenue streams and broader access to sustainable investments,” said Mariano Soria, CEO of Turbo Energy, per Stellar.
“We see it as our responsibility to ensure that blockchain innovation benefits real economies and communities,” added Lamine Brahimi, co-founder and managing partner of Taurus.
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