Energy demand globally is expected to nearly double by 2030. World population will increase substantially, although at a gradually slower pace, reaching 10 billion in just 13 years. With finite resources, the energy sector will face an increasingly complex array of interlocking challenges – economic, geopolitical, technological and environmental.
With the growing demand for energy worldwide and counter challenges of the climate change, consumers are looking for a new distributed energy development model, which will directly connect them to producers to allow access to accountable, cheaper energy.
Restart Energy is developing a blockchain-based platform with a single, intuitive user interface by introducing a blockchain-based decentralized energy platform where consumers and produces can gain access to global energy supply, and will be able to pay peer-to peer with tokens and earn green certificates.
Restart Energy, an independent European Union electricity and gas supply company with USD 20 million in current annual revenue, has developed the first energy retail franchise based on decentralized and delocalized electrical energy supply platform and an ecosystem based on the blockchain technology. So, what are these novel technologies and how they can be applied in the energy sector?
Blockchain is a special technology for peer-to-peer transaction platforms that uses decentralized storage to record all transaction data. The blockchain innovation is that transactions are no longer stored in a central database, but distributed to all participating computers, which store the data locally. It is especially promising in the energy sector where networks of peers—electricity producers and consumers, connected via the grid, depend on shared sets of data. This technology drastically transforms the very architecture of the grid itself. Its core functionality is decentralized storage of transaction data. These mechanisms are called “smart contracts”. Thanks to the innovative breakthrough, a myriad of third-party intermediaries, whose services are no longer required in energy, are eliminated. Blockchain technology strengthens the market role of individual consumers and producers. It enables prosumers, i.e. households that not only consume but also produce energy, to buy and sell energy directly, with a high degree of autonomy.
At present, electricity is traded through exchanges or over-the-counter transactions (OTC). In many markets, more than 75% of the electricity volume is traded over the counter. As a result, bids and offers are managed by financial brokers, and therefore, are often executed outside of exchanges. This, in turn, makes all the transactions opaque.
Restart Energy, one of the fastest-growing energy companies in Europe, is building a global energy supply platform based on the blockchain protocol to democratize a sector burdened by bureaucracy and high transaction fees. The new platform would significantly reduce cost of the energy and thus save money, help local small producers to earn more and allow real peer-to-peer direct energy trading using existing infrastructure.
The main differences from other energy companies and Restart Energy’s advantages include the following features:
- Any registered user can buy or sell energy from any other registered user;
- Some consumers can become generators of power (e.g. wind/solar) as large power stations (gas, coal, nuclear) are being replaced with thousands of consumer-generators;
- P2P: All parties in one ecosystem can trade with each other;
- Green certificates are issued to the platform users; this is an innovative way to encourage consumers to switch to renewable energy;
- Franchises exist that can allow users to become small energy producers at various levels (details are available on restartenergy.io;
- bounty program exists for social media adopters who can benefit from participating and educating people about the company.
Moreover, Restart Energy has developed the only retail energy franchise in the European Union and has sold already over 300 energy franchises to its European business partners. They have various benefits, and their main solid advantage is the possibility for users to start their own power retail business at various levels.
Furthermore, Restart Energy will issue its own energy carrying cryptocurrency token called RED Megawatt Token (MWAT) in a token crowd sale that aims to raise up to $30 million. Each MWAT will cost equivalent of US$ 0.10 in ETH and works as a virtual battery with the ability to store up to 1 MWh/token. Each token will have an initial charge of 0,11 kWh. MWAT is crypto token that works like a battery enabling the storage of electrical energy.
MWAT tokens are the first tokens backed by real energy and business opportunity. Even at the point of sale the tokens are backed by real energy and each one has an initial charge of 0,11kWh of energy, tokens can be purchased on the platform with crypto and fiat money.
Each RED Megawatt Token has a storage capacity of 1 MWh. Restart Energy will allocate an initial charge of 0,11 KWh per RED MegaWatt Token. The amount of energy stored in each RED MegaWatt Token will continue to increase over time. The RED MegaWatt Token is an “energy battery”. It acts like a battery accumulating ever growing quantities of energy transferred by renewable energy producers and suppliers in exchange for access to the RED platform. Tokens can be used to pay energy bills or sell energy to other participants on the RED platform. Each has 1kW of energy and can be purchased on the platform with crypto and fiat money.
Are there any downsides to the decentralized energy platforms? Yes, there are, but they are insignificant. First, intermediaries in the energy sector assumed responsibility of interacting and informing the communities and end consumers. Energy brokers or suppliers do have legal responsibilities regarding the information they communicate to end consumers and it should be accurate. However, with the decentralized energy platforms, nobody will be responsible for community outreach. Second, with the fluctuation of prices, an average consumer would be exposed to vulnerability and will not able to trade energy effectively, because it requires certain technical knowledge and skills.
Besides that, a successful deployment of a decentralized energy market would reduce the need for the government to further encourage consumption of renewable energy, which is still necessary for large-scale utility power plants. And last, but not least, what risks does the decentralized platform bring if operated by a single entity? If a company fails, so will the platform. Having said that, we must always bear in mind that such risks can be insured.
The blockchain technology has the potential to radically change energy as we know it, by starting with individual sectors first, but ultimately transforming the entire energy market. Blockchain technology makes it possible for energy networks to be controlled through smart contracts, and customers, therefore, have an option to pay for energy using cryptocurrencies. Due to elimination of intermediaries, greater transparency and flexibility, and lower transactions costs, energy prices are significantly decreased for consumers. Besides that, the blockchain technology also provides the basis for transparent control of metering, billing and clearing processes.
About RESTART ENERGY
RED (Restart Energy Democracy) is a blockchain powered platform backed by Restart Group, a European energy provider with $20 million in revenues. The company was built with a view to democratize the energy sector and quash the dominance of legacy monopolies in the energy world. The company’s credentials include 400% growth since 2016 and a customer base of 27,000 household and 3,000 corporate clients, expanding at more than 2,000 clients per month.
Restart Energy is developing the world’s first peer-to-peer, fully decentralized energy transfer platform based on its proprietary virtual balancing system that uses A.I, Big Data, and IoT technologies. The RED ecosystem is comprised of the RED-Platform, RED-Franchise and RED-MWAT Tokens. RED-MWAT are crypto tokens that enable virtual storage of electricity and will facilitate the development of clean affordable energy.