Blockchain
a16z Crypto Supports Daylight Decentralized Energy Protocol
Alvin LangJul 31, 2024 5:14 PM
a16z Crypto leads Series A funding for Daylight, a protocol that aims to decentralize energy management through distributed energy resources.
a16z Crypto, a venture capital fund known for investing in crypto and web3 startups, has announced a significant investment in Daylight, a company focused on decentralizing energy management through distributed energy resources (DERs). The move is part of a broader trend toward deploying DERs like solar panels, batteries, and smart thermostats, which are seen as essential to modernizing the energy grid.
Daylight Decentralized Protocol
Daylight is developing a decentralized protocol designed to allow developers to program the energy grid using DER. Initially, the company plans to sell DER data to traditional energy companies, helping them optimize grid management. Over time, Daylight aims to enable anyone to build a virtual power plant with access to DER information and control over its distribution.
A virtual power plant aggregates energy resources to serve as a power source for the grid, addressing the collective action problem posed by individually owned DERs. By enabling homeowners and businesses to capture and sell data from their energy devices, the Daylight protocol seeks to create a more responsive and efficient energy grid.
Innovative use cases
Daylight envisions a variety of use cases for its protocol. For example, a home equipped with a solar panel, an electric vehicle, and a smart thermostat could generate, store, and discharge energy as needed. The data these devices produce can be sold to energy companies to improve grid management. Additionally, homes and buildings could pool their energy resources, auctioning them off to virtual power plant operators via Daylight’s decentralized marketplace.
This setup enables a competitive marketplace where homeowners and businesses can offload their energy assets to the highest bidder in real time. It also enables the purchase of excess energy from Daylight-connected devices, potentially reducing energy costs across the grid.
Leadership and competence
Daylight is led by co-founder and CEO Jason Badeaux, who has extensive experience in the energy sector and a keen interest in cryptocurrency. He is joined by co-founders Udit Patel, who has experience operating the New York grid, and Evan Caron, an energy trader with a background in cutting-edge energy innovation. Together, they bring a wealth of knowledge and experience to the table, supported by a team of energy grid operators, smart contract engineers, and industry experts.
a16z Crypto’s Vision
a16z Crypto’s investment in Daylight is part of its broader strategy to support innovative solutions in the crypto and web3 space. By backing Daylight, a16z aims to help modernize and decentralize the U.S. energy grid by leveraging blockchain technology to improve grid management and efficiency.
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