Energy tokenization, exemplified by PowerLedger, is revolutionizing electricity markets by enabling peer-to-peer (P2P) trading of renewable energy. Blockchain-based platforms allow prosumers to sell excess solar or wind power directly to consumers, bypassing traditional utilities. This decentralizes energy distribution, enhances grid efficiency, and reduces costs. PowerLedger’s dual-token system (POWR and Sparkz) ensures transparent, secure transactions, fostering trust in local energy markets. By tokenizing Renewable Energy Certificates (RECs), it simplifies trading, prevents fraud, and promotes clean energy adoption. Such innovations empower communities, optimize resource use, and support sustainability goals. As regulatory frameworks evolve, tokenization could democratize energy access, stabilize prices, and integrate distributed energy resources, paving the way for a resilient, decentralized energy future.