700 Households in Germany Benefit from Ethereum Energy Project

700 Households in Germany Benefit from Ethereum Energy Project

Cheaper energy due to the unaltered ledger is real. Lition, an Ethereum-based project, supplies 12 largest German cities with energy at a lower cost by directly connecting citizens with energy producers. Here’s more about the project.

Licensed, Cheap and Novel

Energy consumers in such German cities as Berlin, Munich and Hamburg and others are now benefiting from the DLT. According to Lition, on the whole, over 700 households are using its services to purchase cheaper energy.

Lition, a authorised in Germany energy provider, is build on Ethereum unaltered ledger. Thus, it obviates the need for intermediaries in the energy supply chain.

As CoinDesk explains, typically suppliers sell its energy (e.g., electric or solar) to mediators which often appear to be MNCs. Consequently, the latter sell the energy to consumers. But Lition’s CEO Richard Lohwasser believes these middlemen bar consumers from an array of energy choices and impose their own influence.

Therefore, Lition works on making the energy chain decentralized as we have already seen in the banking domain — DLT eliminates the need for banks to carry out transactions. With the elimination of the need for intermediaries, the price for the service goes down as well.

Lition claims it helps customers save 20% on their community services bills. In the meantime, the company adds, cutting out of intermediaries helps power plants gain 30%. Interestingly, these savings occur even given the fact that Lition focuses on environmentally friendly energy, which is traditionally considered more expensive.

When it comes to the energy choice, Lition says it customers can choose between such options as:

  • Wind
  • Energy
  • Biomass

Moreover, it’s consumers who decide which provider to choose, and, apparently, it appears to be the cheapest one, Lohwasser stressed.

The payment for the service is done in euros directly to Lition. It is noteworthy that this project plays the role of an intermediary too, though its role is only informational in the energy supply chain.

However, not everything is so «sunny,» Lohwasser admits. The company’s exec says Ethereum is a slow system. He even called it «not a good» one. The issue is that it might take 20-30 seconds to let the clients know whether they can purchase energy. To overcome the struggle, Lition started looking into other options, but Lohwasser says all DLT networks have their own disadvantages.

Image Source: Flickr