Current State of the Energy Industry

The global energy landscape faces several critical challenges that hinder progress toward a sustainable, equitable, and efficient energy future:

1. Resource Depletion and Inefficient Energy Use

Global primary energy consumption reached a record high of 620 exajoules (EJ) in 2023, increasing by 2% from the previous year, according to the Energy Institute. Despite a slight reduction in the percentage share of fossil fuels, they still accounted for 81.5% of total energy consumption. The reliance on fossil fuels not only depletes finite resources but also leads to significant energy waste. The transition to renewable energy sources is crucial to ensuring long-term energy security and reducing the inefficiencies inherent in the current energy system.

1. Environmental Impact and Underutilization of Renewable Energy

In 2023, global energy-related greenhouse gas emissions exceeded 40 gigatonnes (GtCO2e) for the first time, according to the International Energy Agency (IEA). CO2 emissions from fossil fuel combustion, which contribute around 87% of total energy-related greenhouse gas emissions, highlight the environmental cost of our current energy systems. Despite the availability of renewable energy, its adoption remains limited. Increasing the utilization of renewable energy is essential to mitigate climate change and reduce our carbon footprint.

1. Centralization Control of Energy

Traditional energy systems are centralized and controlled by a few large, shareholder-driven entities, leading to inefficiencies, lack of transparency in pricing, and unequal distribution of energy resources. These centralized systems are limited by their rigidity and inability to adapt to changing energy demands and technologies. Transitioning to a decentralized model can reduce costs, improve efficiency, and enhance system stability by distributing control and ownership more broadly. Decentralized solutions empower communities, promote fair access to energy, and overcome the limitations of traditional power distribution systems.

1. Energy Inequity

Approximately 750 million people worldwide lacked access to electricity in 2023, emphasizing the need for equitable access to energy resources to support global economic development. Energy inequity remains a significant barrier to global progress, particularly in developing regions. Addressing this inequity is vital for fostering inclusive economic growth and ensuring that all communities benefit from modern energy solutions.

1. Technological Obsolescence

Existing energy infrastructures are outdated and inefficient, struggling to meet the demands of modern energy consumption. The International Energy Agency estimates that approximately $2 trillion is needed annually until 2030 to modernize these systems and integrate advanced technologies like smart grids and IoT systems. Without significant upgrades, these infrastructures will continue to pose a barrier to the adoption of renewable energy and the overall efficiency of energy distribution.

1. Rising Energy Demand Due to AI

The rapid advancement of artificial intelligence (AI) and machine learning technologies has significantly increased the demand for energy. In 2023, data centers, which power AI applications, consumed approximately 460 terawatt-hours (TWh) of electricity, with expectations to reach more than 1,000 TWh by 2026, according to the IEA. This surge in energy consumption places additional pressure on the existing energy infrastructure, further highlighting the need for sustainable energy solutions that can support the growing digital economy.

OHM3 aims to address these pain points by developing a decentralized energy network that promotes the use of renewable energy, reduces emissions, ensures equitable access to energy, and integrates advanced technologies for efficient energy management. By leveraging blockchain and IoT technologies, OHM3 offers a sustainable solution to meet the growing energy demands, particularly those driven by AI advancements.