The UN Development Programme (UNDP) is planning to provide power bought with cryptocurrency to one of the largest universities in Moldova. Sun Exchange – a marketplace that finances solar power with cryptocurrency will facilitate the purchase of solar panels.
“The establishment is expected to meet most of its energy needs from solar power overnight and make considerable savings on its bills, thanks to rooftop installations expected to reach 15,000 square meters in surface area,” the press realease on the UNDP website says. The contractor, Sun Exchange, uses SolarCoin, a cryptocurrency created by ElectriCChain.
People can purchase solar cells from Sun Exchange and then lease them to interested organizations such as schools, hospitals, and any other entities who are willing to use them. Anyone who is using the solar energy systems bought with SolarCoin will have to pay for the units of energy they consume, up to 20 years until the cost of the equipment and other services are fully paid. Owners of the solar cells will also receive payments in SolarCoin.
Dumitru Vasilescu, the UNDP programme manager, believes that this mechanism would help businesses and private homes realize their basic energy needs while achieving global goals too. “Ultimately, this could revolutionize the renewable energy market for Eastern Europe and Central Asia” he says. “One of the biggest obstacles to countries investing in renewable energy is a lack of finance, as you often have to wait 10 to 15 years before you get a return on your investment,” he told the Thomson Reuters Foundation.
In a country where 74% of the energy is imported, solar energy bought on a long term payment plan would definitely be welcome by the general public. Moldova who import all kinds of energy including coal, natural gas, and petroleum from abroad, has a growing US$5 billion debt to Russian natural gas supplier Gazprom.