Energy powers everything, from the lights in our homes to the infrastructure that keeps economies moving. Yet for decades, the control over energy systems has been highly centralised, dominated by large utilities and institutions. This structure has made it difficult for individuals, households and communities to participate, innovate, or directly benefit from the energy they help generate. But, this centralised model is starting to shift. A new energy future is emerging one that is decentralised, digital and rooted in community participation. At 2Tokens, we call this transition Energy Democracy. It’s a movement that places power literally and figuratively back in the hands of the people. It’s not just about upgrading infrastructure; it’s about rethinking ownership, access and the value of energy itself. A big part of this shift is being driven by technologies such as blockchain and tokenisation. These tools allow energy to be captured, measured and exchanged as digital assets. Imagine generating solar energy from your rooftop panels and receiving digital tokens in return tokens you can store, trade with neighbours, or use to pay for other services. This makes energy not just something you consume, but something you own and control.
Source: Power of the Many
Tokenisation offers new ways to incentivise sustainable behaviour and streamline transactions. Because everything is recorded transparently on a shared ledger, trust is built into the system. Smart contracts automated digital agreements can take care of who gets paid, how much and when, based on predefined rules. There’s no need for manual paperwork or intermediaries. And since these systems are programmable, they can reflect local values: rewarding those who reduce usage during peak hours or share excess energy with the community. At the same time, these innovations aren’t without challenges. Blockchain and token systems are still complex for many users, and the learning curve can be steep. There’s also the question of regulation. Existing laws were built around centralised energy markets, not peer-to-peer exchanges or digital wallets. Until regulation catches up, uncertainty remains around how scalable or legally compliant these systems can be - although at least in the EU, selling energy on a peer to peer basis is now legally allowed.
Then there’s security not in the blockchain itself, but in how users manage their wallets and keys. The technology is powerful, but it’s only as inclusive as the design allows it to be. These themes (both the promise and the limitations) are explored in depth in the white paper - Power of the Many - recently published by the 2Tokens working group. It lays out a practical vision for how decentralised energy systems can be implemented using tokenisation and community governance. The paper shows how local communities can move beyond being passive energy consumers and become energy organisers, co-ordinating their own generation, storage and use. What’s compelling about this vision is how deeply human it is. It’s not about replacing utilities with code; it’s about creating systems where people have agency. Community governance, transparency and shared ownership are core principles in this new model. Decisions aren’t dictated from the top down, but shaped locally, with flexibility to reflect the values and priorities of those involved. Of course, building something new also means learning as we go. That’s why the white paper calls for real-world pilot projects sandbox environments where communities, technology providers and regulators can test, learn and refine these systems in practice. These aren’t theoretical exercises they’re the groundwork for real, scalable change. However, it is not just about creating energy but tracking the waste and encouraging recycling of waste. It is estimated that: “Cumulative aluminium waste from PV panels and wind turbines is estimated at 162,736 tonnes, and copper at 154,883 tonnes by 2023. By 2050, PV panels and wind turbines will generate annual waste including 2.9 million tonnes of steel, 191,527 tonnes of aluminium and 52,874 tonnes of copper.”
Therefore, in an era of climate instability, rising energy prices and strained infrastructure, decentralising energy isn’t just a smart idea it’s becoming a necessity. Tokenisation isn’t a silver bullet, but it’s a powerful tool that can unlock new possibilities: not only for energy access, but for fairness, resilience and innovation. The energy grid of the past was built for control; the energy systems of the future are being built for participation. In a world facing climate disruption, rising costs and infrastructural strain, Energy Democracy isn’t a utopian ideal - it’s a necessary evolution. Enabled by blockchain and tokenisation, energy is no longer just a utility it’s a right, an asset and a means of co-ordination. This shift challenges more than outdated infrastructure - it challenges the very idea of who gets to define value, access and ownership. When communities can generate and trade energy peer-to-peer, power is no longer just electrical. It’s political. Tokenised energy doesn’t just decentralise technology - it decentralises trust.
But as with all revolutions, inclusion is not automatic. If these tools aren’t designed with care, they risk becoming digital gatekeepers instead of enablers. The question isn't just how we build the future of energy but who gets to build it, access it and benefit from it. The future of energy isn’t just renewable, it’s reimagined. And its most powerful source isn’t sunlight or wind - it’s agency. The future of energy is local, smart and shared. And best of all? It’s one we can all help build.
This article first appeared in Digital Bytes (3rd of June, 2025), a weekly newsletter by Jonny Fry of Team Blockchain.