Investigating the last months’ ICO projects, I have already written about ICO scam and HYIP, then about the projects that seemed funny.
Now it is the turn of projects, which are really useful not only for their developers but also for humanity (in my humble opinion). 😉
The first of them concerns one of the most vital problems for all the humanity — electricity generation.
According to the BP company data, the explored oil reserves in the world would last 54 years only! Analysts assume that there is no more oil in Asia-Pacific region in 14 years. Fortunately according to experts’ estimates based on new information from Venezuela, Saudi Arabia, Russia and US the average is 53.3 years.
Regarding the safety of nuclear power plants… it is rather doubtful, so governments and peoples of many countries consider it necessary to find alternative energy sources. Some of them have already outstripped others: the share of green energy that is eco-friendly and renewable (taken from the sun, wind, tides, etc.) accounts for most of the electricity produced: Iceland (100%), Norway (98%), Brazil (86%), New Zealand (65%).
Maybe it is hard for you to believe, but in some countries solar and wind power stations already sell surplus electricity to the neighboring countries!
However, there are three main groups of problems:
The first (alternative energy producers’ side):
– lack of own funds to develop projects,
– high cost of bank loans,
– intermediaries, overcharging the buyers thus limiting the number of potential customers.
The second (investors’ side):
– poor understanding of the energy production as a branch of the economyin comparison with others (banking, financial markets, trade, real estate, etc.)
– limited transparency of the investment process in energy production,
– complexity and high cost of the investment process
The third (potential consumers’ side):
relatively high cost due to price hikes, caused by intermediaries.
Energy experts NikolayMartynyuk, ArturasAsakavichus and Haykki Kolk gathered an international group of 12 enthusiasts to unite the suppliers of green energy, potential buyers and investors in a single chain to make this market more transparent, understandable and free from intermediaries.
Their “White Paper” contains 48 pages. Let us have a look at it:
WePower is a blockchain-based green energy trading platform. WePower enables renewable energy producers to raise capital by issuing their own energy tokens. These tokens represent energy they commit to produce and deliver. Energy tokenization standardizes simplifies and opens globally currently existing energy investment ecosystem. As a result energy producers can trade directly with the green energy buyers (consumers and investors) and raise capital by selling energy upfront, at below market rates.
Legally, WePower acts as an independent energy supplier, allowing the WePower platform to be connected to the energy grid and the local energy exchange market as well as energy end users. WePower receives data about the produced, consumed energy, and energy price from the energy grid and energy exchange markets. Once a renewable energy producer is connected to the WePower platform, their future energy production is tokenized. Energy is tokenized based per kWh unit. One internal energy token represents 1 kWh to be produced at a certain time in the future.
The WPR-token economy is described in the “White Paper” below:
When a renewable energy producer requires capital to finance the initial cost of a renewable energy project, he may sell a portion of the energy to be produced in the future, on the WePower platform. The buyer/investor acquires this energy in a form of internal energy tokens.
Each energy token acts as a smart contract indicating:
1) type of energy,
2) when the energy will be produced and delivered;
3) price tag.
This smart contract represents a standard power purchase agreement between the renewable energy producer and energy buyer.
The WePower platform allows renewable energy producers to tokenize and sell the energy they produce. A renewable energy producer connected to the platform issues its own energy tokens within the WePower platform, where 1 energy token represents 1 kWh of green energy to be produced in a certain time in the future (usually within 4–6 months from the connection moment).
Each renewable energy plant connected to the WePower platform will organize an auction for the sale of tokenized energy. WePower token holders will have priority access to such auctions and their allocation will depend on the number of WePower tokens they have.
Each new plant will create an auction on the WePower platform for the sale of energy tokens to energy buyers with the minimum price set for each energy token, which will represent energy to be produced and delivered. Currently, the team is focused on launching a pilot project and tokenization of the entire Estonian electric power industry by April 2018.
Practical application is simpler than theory:
For example, a renewable energy producer is building 100 MW solar energy capacity plants in Spain. The cost of such a project is estimated at 100 million EUR. The producer lacks 20 million USD to bring the project to life. Using WePower the producer tokenizes the projected production of energy of 20 million USD and sells it up front. To incentivize buyers, the producer is always selling its energy below market price which they can use for themselves or sell on the marketplace.
The WePower token model has been clarified with the regulators and is not subject to securities legislation. Moreover, the platform itself is not considered a trading platform. Energy tokens and smart contracts are electricity purchase agreements that are transferred to a digital medium. These agreements indicate how much energy must be given to a particular person, tokens are not financial derivatives, and the platform itself is not subject to regulation of financial law as a trade object.
In August 2018, WePower intends to connect the first customers in Spain, the full launch of the platform in December 2018 and expansion into neighboring countries in 2019.
All in all they plan to sell $35 million worth of WPR-tokens.
During the October pre-sale $3 million tokens were sold (8.5% of all tokens).
WePower announced that the main sale under their roadmap will be held from February 1 to February 14, 2018.
Let us wish the WePower project a successful sale for their February ICO! Let all their plans come true!
As for us — I hope we shall have cheap and environmentally friendly electricity thanks to this project! The sooner the better! And the more the better…
You can check on the WePower project during the halftime period between pre-ICO and ICO on https://wepower.network
I rate the project 8 points out of 10 possible.