LCG Energy is a licensed electricity provider, energy contractor and reseller that has been active on the German and Austrian energy markets since 2008. The company is currently serving the needs of over 50.000 customers in the german-speaking region of Europe and has subsidiaries in 5 countries. After reaching €40M revenue last year, the company is currently in the process of acquiring renewable energy projects worth €80M with an expected ROI of 20%.
According to Global Market Insights, the share of blockchain in the energy sector is set to increase by 500% until the end of 2025. Furthermore, blockchain in the energy market in the private category is set to grow over 45% by 2025. The revolutionary technology emerged in the beginning of 2008 as the public transaction ledger of the cryptocurrency bitcoin. Blockchain did not gain in popularity until the beginning of 2012 and since then, it has been regarded as the remedy of multiple problems across many industries, starting with the financial and banking sectors. Blockchain is applicable virtually everywhere where there is a need for secure transactions of data and the energy sector is not an exception.
Blockchain has been recognized by many leading corporations like PwC and IBM to hold a significant potential and they have been heavily investing in the research and development of blockchain solutions over the past years. A survey by the The World Economic Forum, Stanford Woods Institute for the Environment, and PwC recently acknowledged over 65 use cases for blockchain technology in the environment and particularly the energy sector – improved real-time data management, secure exchange of carbon credits, microgrids, P2P marketplaces and new businesses models are just a fraction of what blockchain has to offer (Source: WorldEconomicForum).
The role of technological progress and blockchain in the energy industry
The energy industry has been under tremendous regulatory and social pressure to reduce its negative footprint on the environment. With the petroleum and coal industries considered to be the biggest polluters on the planet, as well as utility companies using dangerous and outdated techniques to generate electricity, the whole industry is forced to adopt radical changes if environmental goals are to be completed. This pressure the sector is forced to deal with is has led to a challenging economic situation for energy companies, because they have to invest considerable resources in the research and development of new technologies as well as in changing their current infrastructure and processes which are associated with unsustainable operating models. As a result, industry players have started to look for emerging technologies such as artificial intelligence, automated machine learning and blockchain that have the greatest potential and would allow them to deal with the economic pressure they are facing by achieving a greater degree of efficiency.
The interest in blockchain by industry stakeholders is further enhanced by the interrelatedness of the sector to many other industries that heavily depend on energy consumption. Furthermore, blockchain offers new investment models and enables P2P marketplaces for energy trading that can allow micro producers of renewable energy to trade their excessive energy through local micro grids, which can make them independent of big utility companies. This can ultimately speed up the adoption of renewable energy sources which are the cornerstone of environmental sustainability, a goal towards humanity has been desperately striving towards over the last few decades due to the obvious consequences of our actions on the planet.
Because of the increasing degree of interconnection and digitalization of centralized grids, concerns regarding their security have arisen. The potential dangers of a cybersecurity attack and the consequences of such can be dire – recently, Russian hackers managed to access several utility networks in Ukraine and shut them down, which resulted in whole areas in the country left without electricity and losses of millions of dollars. Blockchain can potentially solve this issue by distributing data across multiple nodes rather than a centralized network, which would require attackers to gain access to more than 50% of all nodes on the blockchain and thereby reducing the threat of a single point of failure. Overall it has been found that the technology can enhance process efficiency, flexibility and security across the board and works very well in conjunction with emerging technologies like Artificial Intelligence and Automated Machine Learning.
LCG Energy: a visionaire in the energy sector
LCG Energy envisions the energy sector as heavily driven by technology and innovations. The company believes in the substantial role digitization has played over the last 50 years in the sector and its increasing importance for the years to come. With blockchain technology already being used to introduce new data models, LCG Energy has acknowledged the vital part it will play in the foreseeable future and the wide array of advantages for all industry stakeholders. Capability to provide simple governance structures, lower-cost operations and faster transactions are some of the prominent features stimulating the growth of blockchain and the interest by utility companies towards it. As a result, LCG Energy has been committed towards the implementation of blockchain in their activities as a utility provider, energy trader and contractor. The result of the past two years of active research and development is the LCG Energy ecosystem that consists of the LCG utility token and the LCG Energy blockchain platform.
The LCG Energy platform will facilitate all data and monetary transactions inside the ecosystem. Users will be able to obtain energy-related services and products, invest in renewable energy projects that are registered in land registers and fully regulated as well as pay for their electricity bills using the LCG Energy token. The platform will also offer direct customers of LCG Energy their own dashboard with a history of their energy consumption data as well as a real-time feed. This will be enabled by an integration between blockchain and the Smart Meters LCG Energy has been installing for the last 10 years which is currently being developed by the company and is projected to go live until the end of 2021.
The company plans to patent their Smart Meter and blockchain integration for approximately 8 years after its launch, positioning it as the first utility company to adopt blockchain technology for Its daily operations. LCG Energy hopes to raise the bar for the whole industry and promote the use of blockchain in the energy sector, which will drive innovations and its widespread adoption further than ever before.
Learn more about LCG Energy, their blockchain initiative and upcoming Initial Coin Offering on https://lcg-energy.com/