Energy currency refers to a type of digital or virtual currency that is created and used as a medium of exchange within a specific energy market or network. The idea behind energy currency is to facilitate transactions and the exchange of energy among different participants in the market, such as producers, consumers, and grid operators. Energy currency can be used to pay for the purchase of electricity, for example, or to incentivize the production of renewable energy.

Energy currency can be created through a variety of methods, such as blockchain technology, smart contracts, and other decentralized systems. The use of energy currency can also help to promote the adoption of sustainable energy practices, as it can be used to reward the production of renewable energy, such as solar or wind power, and also can be used to encourage energy efficiency. Energy currency can be a powerful tool to incentivize decarbonization efforts and to accelerate the transition to a low-carbon economy.

In the crypto world, "energy currency" is an emerging concept for tokens directly linked to real-world renewable energy production and distribution. These digital assets aim to tokenise energy, allowing it to be traded, financed, or tracked on a blockchain.

For instance, a solar farm could generate electricity and also mint tokens representing a certain amount of megawatt-hours produced. These tokens could then be sold to consumers or investors, creating a new market for green energy and providing project funding. Unlike Bitcoin, which is criticised for its high energy consumption, these cryptocurrencies seek to incentivise and democratize access to clean energy, transforming how value is assigned and transferred within the energy sector.