A small Ethereum project called Lition is helping citizens of Germany find cheaper energy.
Lition was launched earlier in the year and has already been licensed as an energy supplier in 12 major cities in Germany. Some include Hamburg, Berlin and Munich who have subscribed to its decentralized energy market. The project was built on the Blockchain of Ethereum, and it connects users directly with small or large energy providers.
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Presently, over 700 households in Germany are using this decentralized platform to buy energy.
The company is trying to disrupt how global energy works using a concept that is familiar to Blockchain evangelists. Bypassing the middlemen help users save money on energy.
How it works
In households, energy suppliers sell electric energy or solar to an intermediary and customers buy from that intermediary.
Here, the problem lies with the multinational intermediaries who have too much control and do not give the consumers the choice of what energy to buy.
The solution of the company is to remove the middleman completely.
Lition CEO Richard Lohwasser says,
“Our energy exchange connects customers and producers directly. Producers put their energy on the exchange and then customers can buy it,”
“Usually buying directly from producers is limited to energy suppliers that are big corporations. We’re bringing the exchange to the consumer, so consumers can pay for the energy they want.”
Removing the giants
Cutting out the middleman reduces costs as well. According to Lition, the customer could save up to twenty percent on utility bills. Also, it increases the revenue of power plants by thirty percent.