The blockchain-hype is everywhere, perhaps one of the most benefitted sector from the blockchain is the energy industry. One such example is Lition, which is supplying power to more than 700 households in popular cities of Germany.
The power supplying industry Lition is backed by ethereum based decentralized technology and also a licensed marketer in Germany. Reportedly, the company’s customer base is spread across 10 major cities in the country including Berlin, Hamburg, Munich.
The popular concept of ‘no-middleman’ which is inbuilt within blockchain is leveraged by the company to connect directly with its customers.
Traditionally, a multinational power industry will sell the solar or electric energy or whichever they are producing to an intermediate company. These intermediaries then become a supplier to household users.
In a nutshell, the blockchain powered Lition is eliminating these brokering company and hence provides customers with enough choice to switch to whichever energy type they want.
In public statement Richard Lohwasser, CEO Lition quoted that,
Our energy exchange connects customers and producers directly. Producers put their energy on the exchange and then customers can buy it.
Furthermore, he added that,
Usually buying directly from producers is limited to energy suppliers that are big corporations. We’re bringing the exchange to the consumer, so consumers can pay for the energy they want.
Profit gains by Eliminating the Intermediaries
Surprisingly, the company statistics states that cutting middleman charges saves customers an average of 20 percent on their utility bills, and increases power plant revenue by up to 30 percent.
Also, as explained in the demo section of the company’s official page, users have the option to choose from different green-energy categories of solar, wind or biomass. Once a user finds the energy they want to buy, they make a payment in euros to the company.
The blockchain technology simplifies the process of buying energy directly from green producers of any scale by employing transparent smart contracts that allow consumers to circumvent all of the complexity of energy distribution brokers.
According to Lohwasser, although blockchain has the potential to radically change the way energy industry works, the current situation seems pretty much like a proof-of-concept for a bigger goal.
As of now, only customers from Germany can avail this energy distributor. Also, the company’s website offers a price calculator based on the entered postal code which can help interested customers.