Currently, the average consumer can’t sell their ability to change the temperature in their home on a hot summer day. When the temperature in your home increases, you save the grid some energy. And someone should pay you for that. Excess energy currently has no market value to the average consumer, but the Brooklyn-based startup LO3 Energy is aiming to change that.
The company was founded in 2013 by Lawrence Orsini, who has spent much of his career founding companies as well as consulting to utilities, and Bill Collins, an expert in carbon markets and finance.
LO3 Energy aims to use blockchain technology to create new marketplaces in the electric grid industry. They want to allow people to buy and sell the bits of value in their homes when it comes to producing, storing, or generating energy.
LO3 Energy is Making Democratized Energy a Reality
With LO3 Energy’s innovations, regular consumers can earn money by turning off their lights or buying energy from their neighbor. This technology works on the existing energy grid. This makes it easier to establish a community of buildings that generate, store, and trade energy locally.
LO3 Energy claims to be the first company to do blockchain energy transactions. The startup differentiates from other energy blockchain companies in that they leave the payment part up to the consumer.
They don’t involve a cryptocurrency between the consumer and their energy bill, but rather allow consumers to send data to one another about what’s happening at the edge of the grid. The consumer can choose how they want to pay for that data and the services that come from it.
Now with key partnerships with Siemens, Centrica, and EPEX SPOT, the startup from New York has enabled 9 demonstration projects globally. With their current fundraising projects, they are hoping to do a global series of further demonstrations.
LO3 Energy is currently scaling in Australia and Europe and beginning a growth phase in the USA. They hope to be the energy model of the future, revolutionizing the way that energy is distributed.