• South African startup Momint has launched the Suncash initiative, which is a blockchain-based solution that seeks to boost electricity generation in the country.
• Investors can buy non-fungible tokens (NFTs) linked to solar cells, which are then leased to institutions such as schools and hospitals.
• By using blockchain technology, Momint is able to make the project transparent while also lowering risks.
South African Startup Seeks to Boost Electricity Generation
The South African startup Momint has said the recently launched Suncash initiative aims to ease the country’s power generation challenges. For about $9, investors can reportedly buy non-fungible tokens (NFTs) linked to solar cells which are then leased to institutions such as schools and hospitals.
Momint Pilots Solution at One Local School
A South African startup, Momint, recently said it has launched a blockchain-powered solution that can ease the African country’s energy woes by installing more rooftop solar systems at public institutions like hospitals and schools. According to a News 24 report, the startup’s solution has already been piloted at Delmas High School in South Africa’s Mpumalanga province. As explained in the report, investors that wish to participate in this project can do so by acquiring non-fungible tokens (NFTs) which are linked 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 generated electricity via a so-called standard power purchase agreement.
Comment from CEO about Solution
Commenting on his company’s solution to South Africa’s power generation crisis, Ahren Posthumus, the CEO of Momint said: We are a technology company that’s trying to build for the next 15 years, but what we realised is we can’t build a technology company in a country that doesn’t have electricity.“ Posthumus also claimed that his company does not expect to profit from this project which he described as „not financially sustainable.“ The CEO claimed however that his organization chose pursue this project because they want help South Africa overcome its power generation challenges.
Blockchain Solution Lowers Risks for Momint
On why they chose blockchain as their solution Posthumus insisted that this not only makes he project transparent but it also lowers risks for Momint: „We take legal contracts that represent ownership of each individual cell, and we put those legal contracts into a file that’s typically referred too as ‘the token‘ on the blockchain It’s called a smart contract That smart contract says who ever owns this token has right too underlying asset and they have right too revenues underlying asset generates“.
Conclusion
While the blockchain based solution is seen as one of most appropriate solutions too tackle South Africa’s power generation crisis ,it remains unclear if it will be successful or not .
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