**Estonia’s Renewable Energy Transition with Blockchain Technology**
*WePower, a blockchain energy trading platform, has chosen Estonia as a testing ground for its innovative approach to increasing the percentage of electricity generated from renewables.*
*Smart Meter Coverage and Data Sharing*
WePower’s CEO, Nick Martyniuk, states that the main aim of the platform is to test the limits of what’s possible with blockchain technology. Currently, only 18 per cent of energy in Estonia comes from renewables. The platform aims to increase this percentage by enabling people to share their energy meter data with service providers. Georg Rute, Elering’s digitalisation development manager, highlights that Estonia is an ideal piloting country due to its 100 per cent smart meter coverage.
*Blockchain and Renewable Energy*
The sensitive nature of energy data has been a roadblock for innovators and engineers interested in building new solutions. However, Martyniuk explains that blockchain provides the necessary trust for data sharing and creates liquidity and accountability between energy buyers and producers. This simplifies the trading process on the renewable energy trading platform, allowing energy buyers to connect directly with energy producers.
*Challenges and Scalability of Blockchain*
While blockchain offers promise, there are concerns about its scalability. WePower currently uses the public ethereum blockchain, which operates on a proof-of-work (PoW) approach that requires a significant amount of energy and computing power. This might limit transaction capacity, according to Fei Wang, a senior research analyst at Wood Mackenzie.
*The Future of the Project*
The success of the pilot project in Estonia could pave the way for a potential energy exchange or facilitate peer-to-peer trading using blockchain technology. However, the scalability of the project remains an open question. Scaling up would mean using blockchain for data that flows at high speed and in huge volumes, posing a significant challenge.
*Conclusion*
Despite the challenges, WePower’s innovative approach to connecting energy buyers with producers through blockchain technology has the potential to revolutionize the renewable energy trading market. As the pilot phase progresses, the project will provide valuable insights into the feasibility and scalability of using blockchain to drive the transition towards renewables in Estonia and beyond.
*To learn more about blockchain technology, visit [WIRED](https://www.wired.co.uk/article/what-is-the-blockchain).*
