Using a solution that is based on blockchain technology, South African startup Momint has said that the recently launched Suncash initiative aims to alleviate the country’s power generation challenges. For around $9, investors can reportedly buy non-fungible tokens (NFTs) tied to solar cells that are then leased to institutions like schools and hospitals.
Momint pilot solution at a local school
A South African startup, Momint, recently said it launched a blockchain-powered solution that can alleviate the African country’s energy woes by installing more solar systems on the roofs of public institutions like hospitals and schools. According to a News 24 report, the startup’s solution has already been tested at Delmas High School in the Mpumalanga province of South Africa.
As explained in the report, investors wishing to participate in this project can do so by acquiring non-fungible tokens (NFTs) that are tied to solar cells and are sold for a minimum price of just under $9. The solar cells are then leased to institutions that agree to purchase the electricity generated through a so-called standard power purchase agreement.
Commenting on his company’s solution to South Africa’s power generation crisis, Ahren 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 that does not have electricity.
Posthumus also said his company does not expect to make a profit from the project, which he described as “financially unsustainable.” The CEO stated, however, that his organization chose to go ahead with this project because he wants to help South Africa overcome its power generation challenges.
Blockchain solution reduces risks for Momint
On why the startup chose blockchain, Posthumus insisted that this not only makes the project transparent, but also reduces risks for Momint.
“We take legal contracts that represent ownership of each individual cell, and we put those legal contracts into a file that is generally referred to as ‘the token’ on the blockchain. It’s called a smart contract. That smart contract says: ‘whoever owns this token is entitled to the underlying asset’ and is entitled to the revenue that the underlying asset generates,” the CEO said.
While the blockchain-based solution is considered one of the most appropriate, it has its own drawbacks. According to Posthumus, one of those drawbacks is the risk of non-compliance by public institutions.
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