Crypto investments will drive a revolutionary decade for renewables, expert says
The renewable energy sector in the Middle East – as also globally – is set to see a groundbreaking shift in investments, with the launch of asset-backed cryptocurrency tokens by some of the industry players which are tradable as stocks or digital currencies to raise funding for their projects.
Industry players such as SunMoney Solar Group are set to issue third and fourth tranches of their asset-backed tokens after reporting ‘fully sold-out’ positions for their earlier tranches, amidst the institutional investors-led surge in mainstream adoption of cryptocurrencies following the introduction of spot ETFs (exchange traded funds) in the crypto exchanges.
The cryptocurrency tokens, directly linked to physical, income-generating assets such as operating solar power projects, assure investors regular, monthly returns, besides stable investment.
“Our SDBN1 and SDBN2 tokens have already been sold out and we are all set to introduce SDBN3 in the market soon,” Zoltan Rendes, Partner and Chief Marketing Officer of SunMoney, told Arabian Business.
“The use of blockchain technology [for these tokens] ensures that transactions are secure, transparent, and decentralised, providing added comfort to investors,” he said.
Industry insiders said several more companies in the solar and other renewable energy sectors are either currently in the process or planning to issue asset-backed tokens to raise financing for their projects.
Dual purpose crypto assets
Industry experts said asset-backed cryptocurrency tokens, especially those linked to renewable energy projects like the SDBN tokens offered by SunMoney Solar Group, serve a dual purpose.
They not only support the growth and development of renewable energy but also offer an attractive investment opportunity for individuals worldwide.
By backing cryptocurrency tokens with tangible assets such as the operational capacity of solar power plants, these tokens assure investors of a stable and reliable investment, experts said.
“When investors purchase these tokens, they receive them in a secure blockchain wallet, protected by smart contracts. This means that investors have full control over their tokens, enhancing the security and attractiveness of the investment,” Rendes said.
He said one of the key features that make these tokens attractive is the promise of regular returns, as investors receive monthly payments directly to their wallets.
“This steady income stream is a significant draw for investors looking for both financial returns and stability,” the SunMoney senior executive said.
Investments in tokens support sustainability efforts
Beyond the financial incentives, investing in these tokens are also expected to give a major push to ‘green investments’ as they enable individual investors to contribute to global sustainability efforts.
Rendes said the current shifts in market dynamics and technology will herald a revolutionary decade for green investment and renewable energy sectors.
He said along with the new funding route through asset-backed tokens, the most promising trend in the development of advanced solar energy storage solutions will lead to a significant leap in the efficiency and cost-effectiveness of solar power projects.
“These advancements are crucial for minimising energy wastage and optimising the use of solar energy, making renewable sources more viable and attractive for widespread adoption,” said the senior executive of SunMoney Solar Group, which is currently on a major expansion in the emerging markets, including Middle East, planning to set up several solar projects.
“Our approach leverages the innovative concept of tokenised investments, which offers a flexible and inclusive model that encourages remote participation and investment in solar projects.
“This model is particularly suited to emerging markets, where access to traditional forms of investment may be limited,” Rendes said.