Finance solar energy with cryptocurrencies
Solar energy presents funding problems in Eastern Europe. As an alternative, the UN Development Program collaborates for the first time with a company funded through cryptocurrency so that one of the largest universities in Moldova uses the sun as a source of energy.
In certain developing countries, it is difficult to use these instruments, since the bank loans necessary to buy them present a very high price.
Sun Exchange is a company that offers users the possibility to buy panels and rent them to hospitals, schools and other entities using their national currency or SolarCoins, a digital currency introduced by the ElectriCChain company.
The UN agency cooperates with this entity so that the Technical University of Moldova can use the sun's rays as a source of energy.
How does it work?
Once all the necessary panels for the project have been purchased, the tenants begin to use them and pay for each unit of electricity generated. After twenty years, they acquire ownership of the panels and the former owners receive SolarCoins depending on the amount of energy produced during that period.
"It is not surprising that this is the fastest growing cryptocurrency market. The system has all the right incentives: it drastically reduces the costs of using solar energy and makes it easier for anyone in any place to have a solar panel and, with it, create a stable source of remuneration through light, "says Abraham Cambridge, founder and CEO of Sun Exchange.
The case of the Technical University of Moldova
In Moldova, 74% of the energy is imported, so prices have increased more than 50% in the last five years. Faced with this situation, being able to produce and use your own energy seems the best alternative.
To meet the needs of the institution, it is estimated that about 1 megawatt of peak power is required. After twenty years, the initiative will have zero costs for the university, which will be the owner of the facility.
With an area of 15,000 square kilometers, the initiative is expected to meet its energy needs through solar energy and to save considerably.
Future projects
In June, the Development Program will establish a pilot fund to raise awareness of how to access and promote solar energy, but also to be able to replicate the model elsewhere.
"This alternative financing mechanism helps cities, businesses and households meet their basic needs by fulfilling several World Goals at the same time," says Dumitru Vasilescu, the program director of the agency. "Ultimately, this could revolutionize the energy markets of Eastern Europe and Central Asia."
Tying cryptocurrencies to tangible products is what's going to really push them to the forefront of cutting edge industry. That's what Filecoin is doing by reimbursing people with cryptocurrency for providing their hard drive space for other people's remote storage.
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