The Isfayram-1 hydroelectric power station in Kyrgyzstan enters the blockchain for the first time
For the first time in world practice, a hydropower project has become available for investment through blockchain. A hydroelectric power station in Kyrgyzstan, thanks to a partnership with the technology company PicWe, has launched what the developers call “the world’s first digital investment product backed by hydropower.” This step opens a new page in financing renewable energy sources, combining real electricity production with the world of digital assets, according to Hydropost.
We are talking about the Isfayram-1 hydroelectric power station, located in the picturesque mountains of the Tien Shan. This is a flow-through hydroelectric power station with a capacity of 4.02 MW, which annually generates about 22.9 million kWh of electricity. The annual income from the sale of electricity is approximately 1.15 million US dollars. The station is part of a large-scale project involving the construction of a cascade of five hydroelectric power stations on the Isfayram River to increase the share of green generation in the country’s energy system.
The innovative model allows investors from all over the world to purchase digital tokens, which represent a share in the capital of a hydroelectric power plant. In fact, everyone can buy a “digital share” of a real energy facility. The projected annual return for investors is about 20%, while payments directly depend on the volumes of electricity produced and sold.
Blockchain technology plays a key role in the project, providing unprecedented transparency. All data on the performance of the station and its revenues are recorded in a distributed registry, which eliminates the possibility of their forgery and allows investors to track indicators in real time. At the time of launch, the market capitalization of the Isfayram-1 tokenized asset is estimated at $ 10 million.
The profit distribution mechanism is structured as follows: 80% of the income from the sale of electricity is sent to token holders, and the remaining 20% is reinvested in the operational needs of the HPP and financing the construction of the next cascade stations.
The Isfayram project fully complies with the legislation of Kyrgyzstan in the field of renewable energy and has already been recognized as an important element of the national transition to environmentally friendly energy sources. This precedent can become a model for attracting international investment in vital infrastructure around the world, making financing of green projects more accessible, faster and more transparent.
Original (in Russian): ГЭС «Исфайрам-1» в Кыргызстане впервые выходит на блокчейн
