Report: South African Startup Momint Seeks to Boost Electricity Generation Using Blockchain-Based Solution
Using a solution based on blockchain technology, South African startup Momint said the recently launched Suncash initiative aims to solve the country’s electricity generation problems. For around $9, investors can reportedly buy non-fungible tokens (NFTs) linked to solar panels, which are then rented out to institutions like schools and hospitals.
Momint Pilots solution at one local school
South African startup Momint recently said it launched a blockchain-based solution that could alleviate the African nation’s energy woes by installing more rooftop solar systems in government facilities such as hospitals and schools. According to a News 24 report, the startup’s solution has already been piloted at Delmas High School in the South African province of Mpumalanga.
As explained in report, investors wishing to participate in this project can do so by purchasing non-fungible tokens (NFTs), which are linked to solar panels and are sold at a floor price of just under $9. The solar cells are then leased to institutions that agree to buy the electricity generated under what is known as a standard electricity purchase agreement.
Commenting on his company’s decision to address the electricity generation crisis in South Africa, Aren Posthumus, CEO of Momint, said:
We are a technology company that is trying to build for the next 15 years, but we realized that we cannot build a technology company in a country where there is no electricity.
Postumus also said that his company does not expect to profit from the project, which he called “unsustainable from a financial point of view.” However, the CEO stated that his organization decided to go ahead with the project because it wants to help South Africa overcome its electricity generation problems.
Blockchain Solution Reduces Risks for Momint
Speaking about why the startup chose blockchain, Postumus insisted that this not only makes the project transparent, but also reduces the risks for Momint.
“We take legal contracts that represent the ownership of each individual cell and put those legal contracts into a file that is commonly referred to as a “token” on the blockchain. This is called a smart contract. This smart contract says: “whoever owns this token is entitled to the underlying asset,” and he is entitled to the income that the underlying asset generates,” the CEO said.
Although the blockchain based solution is considered to be one of the most suitable, it nevertheless has its drawbacks. According to Postumus, one such disadvantage is the risk of default by public institutions.
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