Gregory Lavigne Quoted on Blockchain and Energy Deregulation
Akin Gump global project finance counsel Gregory Lavigne Jr. has been quoted by Corporate Counsel Business Journal (formerly Metropolitan Corporate Counsel) on blockchain’s potential to democratize energy deregulation.
Lavigne, whose practice focuses on transactions surrounding energy and infrastructure projects, noted that blockchain is the natural next step in a process begun in the 1990s, when the U.S. government separated electric generation, transmission and distribution.
He said, “Companies are now building platforms on the blockchain that will allow anyone that generates electricity to become a third-party seller of power in the same deregulated marketplaces as third-party retail electricity and gas companies. Once electrons enter the power grid, they cannot be guided or tracked to a specific end user. As a result, buying electricity that is not physically connected to the end user is primarily a financial transaction, and the blockchain is designed to facilitate those at scale.”
Lavigne added that this could revolutionize the financing of new projects and mandating of how end users’ energy budgets are spent, citing as examples “aggregating individuals on the blockchain to replace a conventional single-user PPA or allowing a single large user of power to satisfy its renewable commitments by purchasing directly from hundreds of small generators, like rooftop solar.”