Introduction.
Poor access to electricity in Sub-Saharan Africa has limited the growth and economic development of countries in this region and has drastically reduced the quality of living. We see companies exiting these countries every day due to the increasing operational costs, the bulk of which goes to providing reliable electricity to run the company. Mortality rates in hospitals keep increasing with each passing day due to the unavailability of a reliable electricity supply to operate critical medical equipment necessary to mitigate health emergency risks. The primary aim of the M3tering protocol is to eradicate these troubling issues by increasing access to reliable and affordable electricity in Sub-Saharan Africa. In this article we will discuss the M3tering protocol extensively and its approach towards eradicating energy inaccessibility in Africa.
Energy inaccessibility: the idea behind the M3tering protocol.
Energy accessibility is defined as having unlimited access to affordable and reliable electricity. Access to a reliable energy supply is paramount to the economic development of a country and a nation with an underdeveloped economy is headed towards perpetual suffering. While countries in continents like Europe, North America, and Australia are ahead in the race to provide reliable energy supply, Africa as a whole is way behind the starting line. Research by the International Energy Agency (IEA) in 2020 showed that 591.7 million people in Africa live without access to electricity. Furthermore, the IEA predicted that in 2030, 560 million people in Africa will remain without access to electricity.
The influencing factor impeding energy accessibility in countries within Sub-Saharan Africa is the insufficient infrastructural capacity to generate enough electricity to supply their citizens. According to a BBC report, Nigeria generates way too little electricity (about 4000 megawatts a day) to sufficiently supply its citizens (about 200 million people) with reliable energy. This supply shortage leads to another problem. It’s common economic knowledge that when the demand for a product is high and the supply is low, the price of the product increases. In response to the scarcity of energy resources, electricity distribution companies in these countries impose high electric tariffs, primarily affordable to the upper-income class. Unfortunately, these tariffs are unaffordable for middle-income and low-income earners, leaving a substantial portion of the population without access to essential electricity services.
Energy inaccessibility has far-reaching consequences across healthcare, education, and the overall well-being of citizens. Without access to electricity, healthcare facilities may struggle to maintain critical medical equipment, impacting the quality and reliability of health services. Such situations can lead to compromised healthcare, increased health risks (death as the worst-case scenario), and challenges in responding to medical emergencies. Lack of electricity can impede access to safe drinking water, as electricity is often necessary for water treatment and distribution systems.
Consequently, this poses a direct threat to public health and can escalate existing challenges related to sanitation. Energy inaccessibility constitutes an unconducive environment for students to learn and study, limiting their academic progress. Limited access to electricity also hampers students' study habits, adversely affecting their academic performance. Poor access to electricity also hinders the use of electronic teaching aids in classrooms, hindering the quality of education. This limitation can impede students' learning experiences, limiting their exposure to modern educational resources. Electricity is essential for powering household appliances that enhance daily living. Without it, individuals and communities may lack access to basic amenities, leading to a diminished quality of life.
Over the years, leading authorities on energy have proposed various solutions to tackle the challenge of electricity inaccessibility. Among these, solar electrification has emerged as a standout solution. Solar electrification refers to the process of harnessing solar energy to generate electricity. Given the challenges of limited access to electricity in many areas, solar electrification offers a viable solution by utilizing the abundant sunlight in these areas to produce electricity. It involves the installation of solar panels and related infrastructure to generate electricity, providing a reliable and sustainable energy source that can improve living conditions, supports economic activities, and enhance overall development in countries facing energy scarcity.
Now, the question is, if solar electrification is the solution to energy scarcity in Africa, why is a large-scale implementation taking so long? The stark reality is that implementing solar electrification on a large scale is capital-intensive. According to Forbes, the average cost of setting up a solar panel system is around $16,000 (₦22,400,000), with prices ranging from $4,500 (₦6,300,000) to $36,000 (₦50,400,000) depending on the type and model of the panels, the inverters as well as any other equipment required to operate the system. Considering the prices stated above, it is safe to say that only the upper-income earners will easily afford solar electrification. With the M3tering protocol, it doesn’t have to remain that way.
What is M3tering?
M3tering is a protocol built on the IoTeX blockchain. Its primary goal is to ensure that energy generated through solar electrification is economically accessible to individuals across all income classes. The M3tering protocol achieves this through the implementation of Solar as a Service. Solar as a Service is a business model where a consumer pays a recurring monthly fee to a solar provider to enjoy access to the reliable and stable energy supplied by a Solar PV system belonging to the provider. It is a service for users who desire the reliable accessibility of energy generated through solar PV systems but do not have the financial resources to set up such a system.
Understanding How M3tering Works.
There are two categories of users on the M3tering protocol: the providers and the offtakers. A provider here is usually an actual solar solution company that provides a means for offtakers to enjoy solar electricity through a subscription-based model. The provider makes available all the equipment and materials necessary to set up a standard solar PV system. An offtaker is simply an entity seeking to utilize the Solar as a Service model to enjoy solar-generated electricity. Once an offtaker reaches out to a provider to purchase solar electricity, a Power Purchase Agreement (PPA) is drafted to this effect. A PPA is a documented agreement between a provider and an offtaker that contains the price the provider is selling a unit of electricity for, the timeframe the PPA will last for, and the terms and conditions the offtaker must adhere to while the PPA lasts. Once the provider and offtaker physically or electronically sign the PPA, it is encoded into the M3tering smart contract.
Offtakers are required to pre-pay for some units of electricity using DAI stablecoins based on the tariff specified in the PPA. The amount of DAI pre-paid for electricity can be thought of as collateral intended to ensure the commitment of the offtaker to the PPA and eliminate any economic benefit the offtaker might stand to gain from going against the agreement. Once the offtaker completes the payment is done, the provider proceeds to set up the solar PV system at the offtaker’s preferred location. Once the provider finishes setting up the infrastructure and the Maxwell smart meter is live, the meter will communicate with the M3tering smart contract to get the total kilowatt-hour (kWh) of electricity the offtaker pre-paid for. This kilowatt-hour of electricity is what the system will provide to the offtaker. The offtaker won’t make another payment until it uses up the energy it pre-paid for. Once the offtaker uses up the energy, Maxwell will cut off the energy supply until the offtaker renews the subscription.
The Maxwell smart meter.
Maxwell is the M3tering protocol custom smart meter integrated into solar PV systems mounted by providers on the protocol. Maxwell is designed to accurately detect any attempt by the offtaker to bypass the meter or engage in energy theft and mete out due punishment. Furthermore, Maxwell tracks the energy consumption rate of the offtaker in real time to avoid using estimates that may be unfair to the offtaker or the provider. Interestingly, Maxwell has a precise, automated diagnostics system that can discover operational faults in the connected solar infrastructure and promptly inform the provider about it.
There are ongoing upgrades to integrate Maxwell into an IoT network that provides LoRaWAN coverage to ensure seamless functionality and communication with the protocol in remote areas where wireless communication is difficult or unavailable. LoRaWAN, short for Long Range Wide Area Network, is a wireless technology that allows devices to communicate with each other over an extended distance, consuming little power in doing so. Currently, plans are underway for a mobile app enabling offtakers to link respective Maxwells. This app will allow offtakers to renew their utility subscription and monitor their energy consumption from the comfort of their homes. The app will have a support team working tirelessly to provide online assistance and customer support to offtakers when needed.
Each Maxwell has a representative M3ter NFT on the IoTeX blockchain. These NFTs serve as digital proof of ownership to the physical meters they represent. Maxwell meter stores information such as the unique ID, the wallet address of its owner (a provider), the tariff, and the data collected while the meter is running as metadata in its matching NFT. All offtaker payments are linked to the unique IDs of their energy provider's M3ter NFTs. Ownership of an M3ter NFT grants you a direct income stream based on the electricity consumption of linked offtakers. The transparent connection between payments and NFTs streamlines the distribution of revenue within the protocol.
M3tering protocol and its network effect.
Because offtakers pay for electricity using DAI, the protocol works in the background to convert the DAI to its equivalent amount in solaxy (SLX), the protocol’s native token using a decentralized exchange pool. The protocol then sends providers their revenue in SLX tokens. This conversion allows SLX to increase gradually in value due to the network effect of the protocol. In M3tering, the network effect occurs when the value of SLX increases as many participants on the protocol begin to transact with it. How does this work?
On the provider side, when solar providers off the protocol see that their colleagues on the protocol have established a consistent flow of revenue generation for their companies and are earning token rewards for their contribution towards the growth of the Solar as a Service business model, they’re enticed to join. On the offtaker side, when a normal energy user comes in contact with an offtaker enjoying a stable and reliable power supply, surely, they will want to know how come because it is way too uncommon to see an average person enjoying 24 hours of steady electricity without a power outage. The normal energy user will be shocked to find out that the offtaker pays less compared to what the traditional electricity distribution companies charge the normal user.
The enticing advantages that seem too good to be true are sufficient to attract the average user to join the protocol. More offtakers means more DAI payments and more DAI payments translate to increased demand for SLX tokens in the decentralized exchange pool for conversion. It is common economic knowledge that the increase in demand for a product is directly proportional to the increase in the product price. Providers in turn will get more value for their SLX tokens. As this cycle repeats, the number of participants in the protocol increases alongside the value of the SLX tokens. This cycle is known as the flywheel effect. Note that this effect is in no way unique to the M3tering protocol but to a set of applications known as Decentralized Physical Infrastructure Networks (DePINs) of which the M3tering protocol is an example.
The Garage: a real-world use case of M3tering.
The Garage, a popular workspace hub in UNN, is arguably the first company in Nigeria to benefit from the solar subscription model provided by the M3tering protocol through Switch Electric, a solar solution provider operating in the state. This workspace distinguishes itself by providing a blend of consistent power supply, high-speed Starlink internet access, and comfort to its users. Consequently, it attracts a daily influx of students and other university community members.
During the BlockchainUNN 2.0 conference, Raymond Chuma-Onwuoku, a co-founder of The Garage, talked about the idea of the Garage and how it could bolster the increase in work rates of tech workers. After the brief talk, I was bullish and bearish about the project. I was bullish because the project intended to address the challenges of unreliable power supply and epileptic internet speed, two problems limiting the productivity of tech workers in Nigeria. I was bearish because I couldn’t fathom the practicality of running a startup heavily reliant on electricity in an environment with an unreliable power supply. It is no longer news that the university community experiences frequent and prolonged blackouts. The cost of petrol, a potential alternative, was almost N700 per liter.
I imagined how they planned to maintain student-friendly prices amid the potential financial challenges that might arise due to this electricity shortage. Remarkably, The Garage utilized the solar subscription model of the M3tering protocol through Switch Electric, a provider to forestall the potential issues I was concerned about. Switch Electric installed a reliable solar electricity system at The Garage. So, whenever there’s no power supply from the grid, The Garage uses the electricity generated by the solar electricity system. Below is a live video showing one of Switch Electric's engineers configuring the Maxwell meter with the solar energy system at The Garage.
Partnerships between investors and solar providers
The original idea for the m3tering protocol was to work with providers already in the solar industry. Over time, this idea has evolved to accommodate providers unfamiliar with the solar industry. There are two categories of providers within the M3tering protocol: solar providers and investors. Investors are providers with little or no knowledge about the solar industry but are interested in generating revenue from selling solar electricity through the protocol. Solar providers possess first-hand knowledge about the industry and the technical expertise required to excel in the solar sector.
It is usually in the best interest of investors to collaborate with solar companies within the protocol to save time and money. An investor delegates the task of setting up the solar infrastructure at the offtaker’s location to a solar company on the protocol. The investor will supply the solar provider with sufficient capital to cover the cost of purchasing the equipment and materials needed to set up the infrastructure, transporting these materials to the offtaker’s location, and their pay for the job done. After setting up the infrastructure, the solar provider will transfer the M3ter NFT of the Maxwell smart meter integrated into the infrastructure to the investor. The protocol links every payment the offtaker makes to the M3ter NFT. So, anyone in possession of the NFT gets the revenue generated by the smart meter. If necessary, the investor can pay the solar provider a monthly commission fee to perform regular maintenance checks on the infrastructure.
Conclusion.
Adopting the M3tering protocol in a country suffering the effects of energy inaccessibility can trigger a chain of events capable of boosting the nation’s economy. Through the provision of a stable and reliable energy supply, mortality rates in hospitals will be reduced, the quality of education and living will increase, mass production of local products will surge higher, the rate of crime will reduce, burning fossil fuels to produce energy will be a thing of time past and so on. As the adoption of the M3tering protocol increases, we are bullish about the positive changes it will bring. Visit here to learn more about the M3tering protocol or join their discord server and follow on Twitter to stay updated with new changes and improvements to the protocol.