Power2You is an outgoing project within the InnoEnergy business line, it aims to unlock aggregate and manage energy flexibility, to set the platform business model and the all we can often utilize leading edge technologies and solutions with the energy, InnoEnergy community and the business partners. For our to-go-to the market strategy our first target customers are the regional real estate companies. We will start from Sweden and but our goal is to grow to an international business. The next step for us is to team up with the right partner, so that we can grow faster and stronger and the same time, if all the conditions are favourable, we are probably going to provide this peer-to-peer energy retailing business.
What blockchain applications are the most promising in the energy sector? In order to expand the usage of blockchain technology in the energy sector, I would say the use of the smart contract is quite important or promising so to say like for example the more sophisticated transaction requirements, or user case conditions can be added on this smart contract layer and at the same, in sort, all sorts of interactions between parties can be implemented automatically or digitally, in this way I would say blockchain technology will be used more efficiently in the energy sector.
And furthermore, a visionary concept is to add in big data and the predictive task automation on the smart contract, so that this smart contract can become a more decentralized unit and at the same time with a very high… high degree of autonomy and also they will build their own laws so which is to say to promote the decentralized use of blockchain more in this energy sector. Explain for me of the concept of Eve integrated with blockchain technology. The primary function of this Eve service is to allow the end users, for example some tenants living in the residential housing buildings, and some employees in offices they can book a car through this Eve service, this Eve platform, for driving.
This is also called Eve driving. And the second function is to allow the residential housing building owners or car port owners to utilize the e-mobility battery for their building use for example peak shaving of their facility load. At the same time they can rent out this capacity to the external energy market. And then the third step is for the external energy market players, for example transmission system operator, PRPs, balancing responsible party, and the district distribution system operators, they can use this rent out capacity from the Eve platform for frequency control of the grid and also for congestion management and portfolio unbalancing.
And then when it comes to the integration with the blockchain technology, the Eve services or functions will be more interesting, for example in the primary market, the functions we just mentioned and can be implemented and people can use the Power2You token to buy different services upon their needs. From that point individuals can drive, the building owners they can rent out and gain some revenues from this flexibility, electric vehicle flexibility.
And in the secondary market, well, actually the Power2You token will be traded among the users, among the investors at the early stage some investors, are going to buy this Power2You tokens through some digital currencies, but then at a later stage they could trade this token and then when it comes to this global market as long as this token and poses some kind of certain level of liquidity and the business model of Eve, of Power2You, will be sustained and people can use this token globally just to access to the Power2You service portfolio or access to the Eve services.
In the year long run this…
token or blockchain based technology is going to boast and the service development of Power2You in general. Explain the concept of the blockchain based energy retailer. How does that work? Since we want to solve the problem of the unprofitable condition of the prosumers, so to say those are the people who own a solar panel generator but probably sometimes they couldn’t use all the generation on their own, so they want to share, or sell out their electricity but under some conditions they couldn’t get the profits. So we want to create some value added services for them, to solve this problem and at the same time to raise the… renewable awareness of the consumers, normal consumers.
So we provide this value-added service, first to the retailers on this existing electricity contract, and then to delivered and users prosumers and consumers for electricity trading through a peer-to-peer scheme. How does energy retailing work today in Sweden and how will that change under this scheme? Currently the end-consumers subscribe a contract, electricity contract with a local retailer and they pay an electricity fee of the cost, and also a grid fee and retail service fee and also energy tax, all that and some certificate. This is the current situation. How would it be changed?
For example, the situation I described, more and more end-users they have now solar generation, decentralize generation, and in this case people want to trade electricity in the local community.
We can introduce this peer to peer energy contract, so as to allow some end-users and consumers who wants to buy electricity from the local community, they can do it now on this P2P contract. But they have to pay premium fee, because at the same time they will get some benefits from this local energy trading. For example, they can… rent out the availability of the energy assets so they can consume this local renewable energy for real, at the same, time they will receive the real-time data so they can track what and how they use this local renewables. And the same time they are empowered to vote for the new PV installations in their local community.
And on the other hand for the prosumers, they will get some financial support from the local end-users and then they get incentive to run their renewable generation and to kind of compensate their investment on the solar panels. So what happens next? Next, when this value-added service, a peer-to-peer energy contract, is introduced by the retailers, the end-users, the consumers they will pay the extra premium fee. And then… Within this kind of consorting the end-user, the consumer, the prosumer, and also retailer, and also the peer-to-peer energy contract operator, they will kind of split this premium fee.
For example, for a retailer, they are kind of running this electricity structure for all the end-users in this case, so they get a certain amount of the fee for that. And the new contract operator, for example Power2You, they will get also some small certain percentage of the premium fee and then, most importantly for the prosumers, they will get most part of the premium fee, so as to compensate the local generation and the contribution to the peer-to-peer energy sharing. Yes. You are going to need to get consumers to change their behavior. How do you go about doing that? We need to give them some incentive.
Although they are paying some extra premium, we also wanted them to feel good about this because they are consuming local electricity, they are consuming the renewables and renewable generations. We want to introduce the sustainability column. While we can offer can give them some discounts when their assets, energy assets, consume the local generation surplus for real, which means, as long as the systems verifies the real generation, the real consumption of the local generation surplus in real time, this system will also automatically reduced their electricity upbeat based on the definition of the sustainability column on the peer-to-peer energy contract. So what’s the final message you would like to send from Power2You?
Yes, as a member of Power2You, I would like to say that were using a bottom-up approach to create values, needs, and new trends, during this transition period of energy sector. And we want to engage the end-customers, the consumers, with the most cost-effective, energy efficient and decentralized sustainable solutions and services, and we are ready for revolution.