The corporate war of Thomas Edison and Nikola Tesla set in a new trend for the world. Electricity as a source of power and energy was developed at an unprecedented rate. As technology improved and became cheaper, the use of electricity increased, seeing massive growth in the late 20th century and onto the next. Today, a life without electrical power is impossible. From powering cooling and heating at homes to running large businesses, it is everywhere. Even the article you are reading right now is on a device that runs on electrical power.
The population and industrial growth fuels the demand for energy evermore. With developing nations quickly rising, their needs are growing the most. These emerging markets will comprise of more than 90% of all energy produced globally by 2035.
Issues in Energy
Currently, the energy sector in the emerging markets is hampered by issues. Largely dependent upon traditional energy generation from fossil fuels such as coal and furnace oil, these are struggling to supply what is demanded:
- The rising cost of fuel outstrips the inflation rate of the countries.
- Red tape and bureaucracy creating inefficiencies.
- Old power plants giving lower output.
- High cost of installing new plants.
- Other geopolitical reasons.
Furthermore, with global climate a hot issue, many are discouraging the use of fossil fuels for power generation. Other modes of large power production include hydel (dams), but these cannot be built everywhere, as the land, soil, general area, population and quantity of water flowing in the rivers determine the feasibility. Other options include wind power, which is again subject to the winds running constantly. The most suitable solution left as a reusable energy source is solar power. However, once again, the solar plants are subject to the above mentioned issues, making it very difficult and infeasible to run a nationwide solar electrical grid.
Emerging Markets Solar Fund
The Emerging Markets Solar Fund (EMS Fund) is an initiative by investment firm, Invictus Capital. The EMS Fund is a setup where investors can fund the development of solar grids all over the world, concentrating on emerging markets. The use of a private venture capital firm means that a lot of inefficiencies in state run systems do not exist. Furthermore, Invictus Capital brings a level of data, power and financial efficiency never seen before in the solar power sector. It leverages the use of decentralized technology, blockchain.
Invictus Capital helps people invest in different projects, each with its own set of commercial, financial, geographical and profit ratios. The well planned workings of Invictus Capital ensures that investors are have the lowest financial risk possible. Furthermore, it does not charge a broker fee. Traditionally, this fee can be very high and increase the time taken for the return on any investment. The use of blockchain also eliminates a lot of steps and middlemen that would otherwise increase expenses and eat into the profitability of the investor.
The use of blockchain and a seed funding method also ensures that several investors can group together for a solar project. This increases the purchasing power of the EMS Fund, allowing it to execute the project that would be otherwise too costly to be done by a single investor. The bulk purchases of the hardware, such as solar panels, stands, wiring and others also helps in decreasing the initial investment needed. This is also helpful in reducing costs of upgrades to the system.
Each project is started with the funds from investors. The revenue generated from the project is partially reinvested, for maintenance, expansion and upgrades. A portion of the profit generation is set aside as liquidity pool. This pool value is locked in a smart contract, allowing investors to get cash at any time, without the need to jump through different hoops.
The projects are specifically aimed towards emerging markets and low income areas, giving the people there a chance to improve their lives. Invictus Capital CEO, Daniel Schwartzkopff is visibly excited about the EMS Fund, saying,
“We are very excited to announce the launch of our EMS Fund and play a key role in helping underdeveloped communities reach the higher standard of living that they greatly deserve” and, “With the growing need to start affecting serious change in the energy sector, as well as the demand for a more affordable resource for underdeveloped communities, now is the time to start encouraging this kind of investment. An effective way to execute such initiatives moving forward is through funds like ours.”
An alternate investment firm, Invictus Capital is a company that relies on the latest technologies and methods to provide investors with an easy way to generate income and profits. The reliance on technologies such as blockchain and others ensures a higher efficiency than other investment firms. The firm promises on an average 11 to 13 percent.