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A blockchain company for solar energy in South Africa collects $ 3 million and plans to expand across the continent

June 9, 2020

Peer-to-peer blockchain platform for renewable energy in South Africa Sun Exchange received a $ 3 million investment from Arch Emerging Markets Partners, completing its $ 4 million Series A round of financingAccording to a statement released on Monday.

Sun Exchange enables international customers Buy remote solar modules – either with Bitcoin (BTC) or South African rand – and then rent them out to energy companies and organizations in emerging markets. Abe Cambridge, founder and CEO of the startup, told Cointelegraph:

“Solar module owners earn revenue from the electricity they generate, while schools, businesses, clinics, and other organizations have access to affordable clean energy, which reduces electricity costs and CO2 emissions.”

With the new investment, With Sun Exchange, customers can “further diversify their solar module portfolios across regions and industries”.. The company is also exploring various markets in sub-Saharan Africa, including Namibia, Zimbabwe and Nigeria, Cambridge told Cointelegraph.

Power consumption problem

A blockchain company for solar energy in South Africa collects $ 3 million and plans to expand across the continentA blockchain company for solar energy in South Africa collects $ 3 million and plans to expand across the continent

Bitcoin’s consensus model, proof of work, is known to consume large amounts of energy worldwide. According to the latest Digiconomist data The total annualized area of ​​the cryptocurrency is 58.78 terawatt hours, which is comparable to the energy consumption of the entire country of Israel.

When asked if they were concerned about Bitcoin’s power consumption, Cambridge said to Cointelegraph:

“Although bitcoin mining consumes a lot of energy, it is more efficient than the alternative banking system, and in the race, bitcoins continue to be mined in the most efficient manner, using the least expensive energy that is now solar energy in places with lots of light. We hope that Bitcoin mining can be done with solar energy. “

The energy that solar panels produce during their lifetime is “much greater than the energy needed to mine the bitcoin they were bought with, creating a positive energy balance.”added the CEO.

Other peer-to-peer solar energy initiatives

In May, Australian company Power Ledger announced a partnership with Thai Digital Energy Development to create a blockchain-based peer-to-peer platform for digital energy in the country.