Decarbonizing Energy with Web3
Today, we are excited to announce Anode Labs’ $4.2 million seed round to develop the React Network!
The energy transition is one of the largest undertakings in modern infrastructure- trillions of dollars flowing to rearchitect the most foundational industry of our society. However, the energy transition poses unique challenges for the future operations of our energy system.
Our energy system is a complex web of infrastructure that ensures you are able to turn the lights on, run you AC, refrigerate your food, and watch Netflix. To work properly, the grid must always remain in balance- meaning that the supply of and demand for electricity remain equal. If this balance is thrown off, the system fails. Traditionally, it was relatively easy to balance the grid. Fossil fuel power plants could ramp their output up or down, always ensuring enough supply.
But our power grid wasn’t designed to handle the issues associated with renewable energy and electrification. First, renewable energy generation sources are intermittent, producing power based on the weather, which reduces our ability to control the supply of electricity. The “duck curve” is an excellent example of this — in the middle of the day, solar produces much more electricity than we need, but in the evening when electricity peaks, solar production declines.
Second, the electrification of massive new end markets such as heating and transportation additionally increases forecasting complexity. McKinsey estimates the electrification of new end markets will result in load growth of ~40% by 2035- compared to nearly zero load growth over the last 15 years. Third, weather patterns are becoming increasingly disruptive due to climate change. These issues make it increasingly difficult to balance the energy system.
To ensure this new sustainable energy system remains stable, we must massively increase the flexibility of our energy system. The current grid looks like a telegram- large, centralized power plants transport electricity over long lines to end users. Turning our grid into an interactive network that looks more like the internet is the key to building a more flexible system.
We can solve this by deploying distributed batteries all across the grid- in our homes, businesses, and vehicles. Batteries are like warehouses for electrons- we can store them when they’re abundant, and discharge them when the grid needs them. While each of these batteries may be small, we can pool these batteries together where they can be orchestrated together to provide a collective response to grid conditions. This creates a super dynamic, responsive, flexible energy system. And even better- everyone who contributes a battery to the pool gets paid, just like they were operating their own mini power plant!
Today, we’re excited to introduce React. React’s mission is to build this community-owned network of batteries to unlock a new era of stable and sustainable energy. Together, we’ll build a community committed to accelerating the energy transition- a new kind of energy cooperative building a better future for society.
Thanks to all of our amazing investors who have partnered with us to build the future of energy: Lerer Hippeau, Lattice, Digital Currency Group, CoinShares, Allegory, Gaingels, VaynerFund, + angel investors Chris Kemper, Founder & CEO of Palmetto, Eric White, Founder & CEO of Dividend Finance, and Dave Merin, Head of Corporate Development at ConsenSys.
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