Advertisment


You want the latest news about Crypto? Sign up to our weekly Newsletter!


On June 3 2016, the Chile’s central grid operator revealed that it has produced an excessive amount of solar energy that it had to distribute it for free throughout the country. Last year, the price of solar energy remained at zero for 192 days. Last year, the price for solar energy remained at zero for nearly the entire year.

Sources including Independent have revealed that the rapid decline in the price of energy has become a major problem for energy companies within the country. Because solar energy has essentially become free in the country, the demand for energy companies and services have decreased significantly.

Despite such large supply of solar energy within the country, according to the central grid operator, the country is struggling to distribute solar energy throughout the country. The central grid and the northern grid are even having problems distributing solar energy to cities, areas and regions near their centers.

“A key issue is that Chile has two main power networks, the central grid and the northern grid, which aren’t connected to each other. There are also areas within the grids that lack adequate transmission capacity,” Independent reported.

Even if Chile and the two major grids produce an infinite amount of solar energy that is sufficient to power the entire country for free, it will be of no value and importance of the grids can’t supply generated energy to many areas and regions. More importantly, Rafael Mateo, chief executive officer of Acciona SA’s energy unit, stated that investors are starting to lose their money due to cut in profits and revenues.

The fundamental issue in energy distribution that exists in Chile and other countries including China that have evolved into major solar energy distributors, can be solved with blockchain technology and with decentralized energy distribution platforms including MyBit. If energy grid operators can be incentivized in real with with cryptocurrencies or crypto assets based on the amount of energy they provide, it will be beneficial for both grid operators and consumers.

Although the price for solar energy has decreased substantially over the past two years, for consumers that can’t get access to solar energy still are forced to rely on conventional energy service providers and grid operators relying on coal and other non-renewable sources of energy.

Hence, the integration of a blockchain-based decentralized solar energy system being developed by MyBit could become an efficient and practical solution for companies, grid operators and consumers in countries like Chile.

“Traditional energy grids will not be able to scale rapidly enough to keep up with the demand. Decentralized energy grids, composed of renewable energy technologies such as solar panels that can be installed on homes and office buildings away from the traditional (centralized) energy production storage facilities, will be a critical component of the solution to the increased energy demand,” MyBit explained.

Already, MyBit has raised over $850,000 in its initial coin offering (ICO). Its ICO campaign is set to come to an end on August 16.


Image Credit: Pixabay, No Attribution Required

About Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He’s worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.

Disclaimer: 
Live Bitcoin News does not endorse this publication, not any of its members are associated with it. Readers are recommended to research on their own before making any investments in any company.