Blockchain Platform Electrify in Singapur is Helping Cut Energy Costs
Businesses in Singapore are slashing electricity bills by up to 25 percent using the blockchain-based and AI driven platform, Electrify. The platform will be available for residential use in Japan and Australia later this year.
Electrify: A New Blockchain-based Energy Platform
The energy industry is in a perfect situation to benefit from decentralization, according to Electrify’s co-founder and CEO, Julius Tan. It would seem Singaporean businesses are in agreement. Twenty-nine year old Benson Wang is a restaurant owner who has used Electrify to save substantially on electricity costs.
Wang’s restaurant is the only one around 500 local businesses that have adopted the technology, cumulatively saving over 1.5 million Singapore dollars in the past year. To help customers save money, Electrify gives them access to multiple energy providers on a single dashboard where deals can easily be compared. The platform also uses smart contracts to handle administrative and accounting tasks, which saves around 30 % in transaction costs.
Julius Tan hopes that Electrify will make it easier for people to choose the energy provider. He also hopes that it will increase the accessibility of renewable energy options, which is more important now than ever. According to the Asian Development Bank, annual energy use in Asia is expected to rise from $700 billion this year to $1.6 trillion by 2035.
The Electrify platform is the natural next step for the energy industry, according to Tan. “Many industries are going from centralized to decentralized to the sharing economy,” Tan told CNBC and added that Electrify sees “…the energy industry as no different.”
Digitizing the Energy Industry
“The electricity retail business is not digitized in many countries, especially in Asia, so customers have lots of options but no unifying platform,” said Tan. To bring the industry into the 21th century, Tan and his co-founder David Lim have implemented Artificial Intelligence in Electrify, which matches people with energy plans based on their budget and amount of energy to be used.
According to industry analyst Mark Hutchinson, new disruption in the industry could leave traditional companies behind. “These new entrants provide both competition and opportunities for collaboration,” Hutchinson told CNBC.
Electrify is only available to business customers at this moment. It will be available to everyone starting this fall, when the company also plans to expand beyond Singapore to Japan and Australia. Tan hopes to roll out an energy-sharing model that will give power-generating households the ability to share power with other homes, much like We Power, which launched an experiment in Japan earlier this year. The expansion will be funded by investors, who supported the company with $30 million in an ICO in March.