Electrify.Asia

Electrify.Asia
ELECTRIFY.ASIA
02.09.2018
ENERGY MARKETPLACE FOR ASIA
CHRISTIAN OTT
AUTHOR
Introduction
The liberalization of energy markets in Asia is in an ongoing process. Several countries (including China and Japan) have started to deregulate their markets and allow non-state-owned enterprises to enter the space.1,2 The motivation behind that movement is to face the increasing demand of electricity, fight the surging pollution, prevent catastrophes like Fukushima and generally explore new ways to produce energy.3,4 Electrify.Asia aims to expand into this increasingly liberalized space. Equipped with their already operational business Electrify.SG in Singapore, where they provided companies with more than 500 thousand kWh of electricity and therefore helped them save more than a total of 200 thousand US Dollars per year,5 the company held an ICO earlier this year. Their goal is to further develop their business by moving it to the blockchain, where transactions will be fueled by their token ELEC.6
FEATURESELECTRIFY.ASIAMARKETPLACESYNERGYELEC(TOKEN)
Marketplace 2.0
Electrify’s marketplace 2.0 offers consumers and providers the possibility to enter smart contracts with each other. These smart contracts are fully transparent and can be modified based on the preferences of customers and providers, allowing them to negotiate energy usage and fees in the contract.7 The marketplace 2.0 also offers customers the possibility to subscribe to a switching service, that will provide them with the most suitable energy plan and provider. This service is based on an AI engine, that will alter its decisions based on parameters chosen by the customer, such as energy source, price, contract length and usage patterns.8 Moreover, this engine provides energy suppliers with data-driven analytics on customers’ usage patterns.9
MARKETPLACEELECTRIFY.ASIASMARTCONTRACTSSWITCHINGSERVICEDYNAMIC
Synergy
In addition to the marketplace, Electrify offers another platform called Synergy, that enables individuals to trade energy peer-to-peer without the need of middlemen.10,11 It targets distributed small-scale producers who want to sell surplus power, that they have generated through photovoltaic devices, wind turbines, biomass energy generators or others.12,13 To support both providers and consumers, Electrify has developed their own IoT smart device “PowerPod”, that offers different features.14 For energy providers, it can monitor and log the amount of electricity generated and write it onto a blockchain.15,16 For consumers, it can serve as a monitor to track how much energy was consumed.17 Additionally, PowerPod might include a functionality for consumers to participate in demand response programs, where they can reduce their power consumption in case the grid is undersupplied.18
SYNERGYELECTRIFY.ASIAPOWERPODTRANSFERENERGYLOGGED ONBLOCKCHAIN
Token and Platform
Electrify.Asia’s token ELEC runs on top of Ethereum. The ERC-20 token has a total supply of 750 million, of which 447 million ELEC are currently in circulation.19 Being a utility token, ELEC is used as a currency in Electrify’s applications Marketplace 2.0 and Synergy. It can therefore be used to access the platform, create smart contracts or pay for services.20 Since Electrify plans to regularly log numerous transactions on a blockchain within their platforms Marketplace 2.0 and Synergy, they were looking for a blockchain with higher scalability than Ethereum in its current state. Under this premise they teamed up with OmiseGo, who are building Plasma. Plasma is a scaling solution that uses child chains reporting to root chains to increase transaction throughput.21 In addition to Plasma as the underlying scaling solution for blockchain procedures, Electrify.Asia also aims to use the eWallet (originally developed by OmiseGo) to facilitate payments for energy usage for their customers.22
PLATFORMELECTRIFY.ASIAEWALLETOMISEGOPLASMA
Partnerships
Since Electrify will be mostly active in Asia, the company partnered up with a couple of Asian companies/institutions located in the energy sector. Beginning with their most prominent partnership, Electrify.Asia teamed up with TEPCO, which is the largest electric utility in Japan. Together, they aim to develop a proof-of-concept for Electrify’s platform Synergy in Singapore. After that, an implementation of the platform could follow in Japan.23 Thanks to another partnership with a Japanese electric utility, Electrify.Asia could enter the Japanese market even earlier. Together with Japan’s TAKE Energy Corporation (TEC), they want to deploy Synergy in Japan’s Kyushu region.24 Furthermore, Electrify’s partnerships are not only tied to Japan, they also cooperate with Chinese company Narada, who are working in the field of energy storage. Collectively, they aim to deploy Electrify’s PowerPod technology alongside Narada’s energy storage platforms.25 Heading over to Singapore, Electrify will join forces with the Solar Research Energy Institute of Singapore (SERIS) to perform further research and development on (1) photovoltaic-related technology for distributed power generation and (2) energy management and trading with blockchain technology.26 In addition to these cooperations in Asia, Electrify entered a partnership with Swiss company Streamr, who are building a crypto-powered marketplace for real-time data. Owners of Electrify’s PowerPod will be able to sell their data logged by the device through Streamr’s marketplace.27
Wrap-up
Electrify.Asia aims to expand their already operational business in Singapore into the increasingly liberalized Asian markets for energy providers and retailers. They offer a platform for energy consumers and suppliers, where both can trade energy peer-to-peer through the use of smart contracts. In addition to that, they developed a hardware device called PowerPod, that serves as a monitor for energy generated and consumed. Electrify’s utility token ELEC serves as a payment method within their platform and is currently an ERC-20 token. However, in the long-term they aim to use Plasma, developed by OmiseGo, to facilitate a higher transaction throughput. Looking at partnerships, Electrify has teamed up with several Asian companies in the energy field, such as TEPCO, NARADA and TEC alongside a cooperation with Streamr.

Sources – Asian Energy Markets
1
“Countries across the region such as Japan, South Korea, Taiwan, Malaysia, Thailand, Philippines and Singapore have opted for market deregulation in a bid to create sustainability. Malaysia has introduced deregulation to its gas and power sector and has paved the way for the introduction of Independent Power Producers (IPPs) to the supply function of the sector, helping the government to reduce the costs and administration involved in the exploration of new natural gas fields. Thailand, as a part of International Monetary Fund and World Bank recommendations, unbundled the Electricity Generating Authority (EGAT) assets and introduced laws for market deregulation. Since 2010, it offers new financial products that target huge market capitalisation. The Philippines’s Energy Regulatory Commission facilitated the privatisation of the National Power Corporation which worked very well in the urban centres, with fully liberated markets benefitting urban consumers. However, providing services to rural markets competitively remains a challenge.”
Engerati; Official Website; Energy deregulation: Transforming Asia’s energy sector; 06.04.2017
2
“There are still social, political and geographical barriers that the Asian region is faced with when it comes to deregulation in the power sector. The sector, many dominated in the region by the presence of state owned enterprises (SOE), is often protected by rigid state policies on service institutions and market structures, explains Venkatachalam. The monopoly of SOEs in energy production and distribution and outdated legislation make deregulation impossible in many countries. The presence of pervasive fuel subsidies and other cross subsidies to power generation stand in the way of competitive market development.”
Engerati; Official Website; Energy deregulation: Transforming Asia’s energy sector; 06.04.2017
3
“Japan is aiming for a complete deregulation of its retail market by 2017 with reforms in electricity and gas markets. The Fukushima event was the main driver of the energy policy being revisited. Japan initiated its electricity market deregulation process last year April and it is steadily becoming one of the world’s largest deregulated electricity markets. If successful, the change could result in a vastly modernised energy sector resulting in lower rates and a more prosperous economy overall. The deregulation could see Japan advance innovation and even become a model for the Asian region.”
Engerati; Official Website; Energy deregulation: Transforming Asia’s energy sector; 06.04.2017
4
“Pollution and overcapacity is China’s reason for market deregulation. Pollution is a major driving force behind China’s reform as cheap coal and overcapacity encourage wasteful consumption patterns. This stands in the way of the government’s efforts to improve energy efficiency and cut pollution. China’s large scale investments in wind and solar energy are being under-utilised under the current system, which is too static to effectively incorporate fluctuating green energy generation rates, resulting in waste and the threat of power cuts. The country is a big energy consumer, representing 25% of the world’s energy consumption. Electricity distribution and transmission are critical to China’s growing economy.”
Engerati; Official Website; Energy deregulation: Transforming Asia’s energy sector; 06.04.2017
Sources – Electrify in General
5
“ELECTRIFY.SG has helped companies buy more than 500,000 kWh of electricity, saving Singapore businesses more than $200,000 per year.”
Electrify.SG; Official Website; 26.08.2018
6
“ELECTRIFY will leverage blockchain technology to facilitate the transition from a marketplace into a decentralised energy exchange. We do this through creating open-source smart contracts for anyone to create a retail electricity smart contract or a peer-to-peer trading contract. All energy contracts will be hosted in Marketplace 2.0 that will provide convenience to consumers to compare and contract with an energy provider, addressing the issue of transparency and accessibility. The main difference between a retailer electricity contract and a P2P contract is that the retail electricity contract allows anyone to provide an electricity contract to any consumer without owning physical assets while the P2P contract caters to distributed energy resource asset owners, allowing them to trade surplus power with any consumer.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
Sources – Marketplace 2.0
7
“Marketplace 2.0 will serve as the main consumer interface (web + mobile) allowing individuals to enter into energy smart contracts with their energy providers, whether it is a commercial retailer or a prosumer. Through the use of smart contracts, we provide a means of entering into an electricity contract that is secured on a blockchain. Distributed ledger technology allows every participant to have an identical copy of their contract details, monthly or periodic (for time-based contracts) energy usage, settlement details and energy fees that are payable to the supplier. This ensures that all stakeholders can transact in a trust-less manner, reducing time and cost of contract monitoring. Energy smart contracts will help energy providers reduce overheads in contract execution and enacting transaction, allowing savings to be passed on to the consumer.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
8
“Energy consumers will also be able to subscribe to ELECTRIFY’s intelligent switching service that will employ artificial intelligence to recommend the most suitable energy plan and provider. Based on the consumer’s parameters and preferences (such as energy source, price, contract length, usage patterns), the AI engine will take inputs from available P2P contracts (via Synergy) and retail electricity plans to provide an optimal recommendation to the user.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
9
“As countries across the region, such as Japan, the Philippines, China and Singapore move toward market deregulation, ELECTRIFY will support this transformation by empowering individuals and improving transparency across the electricity value chain. ELECTRIFY’s price-discovery and intelligence platforms offer consumers more choices while providing energy providers (electricity retailers and small-scale producers) with data-driven analytics on customers’ usage patterns.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
Sources – Synergy
10
“The P2P contract platform, Synergy, which will leverage smart contracts to enable trading and settlement between producer and consumer. Synergy will democratise utility-level trading tools, making it available to smaller producers, providing revenue certainty for producers and cost certainty for consumers, thereby substantiating increased bankability for distributed energy assets.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
11
“The ELECTRIFY platform will be enhanced with Synergy, a peer-to-peer (P2P) energy trading platform through the use of smart contract functionality. Synergy aims to democratise the process and allow energy consumers and prosumers to trade power with one another directly. With greater accessibility to tools for trading, more prosumers will be incentivised to install small-scale solar PV or micro wind turbines with greater assurance of a fair return on investment (ROI). Given greater visibility over a better return on investment, project owners will also get better access to financing through traditional channels or P2P financing schemes, driving adoption for decentralised energy resources (DER).”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
12
“ELECTRIFY will bring these tools, currently available only to large corporations, to an accessible level for the masses. Synergy software development kits (SDK) are designed for deregulated electricity markets with an underlying wholesale electricity market mechanism, allowing peer-to-peer trading of energy lots. The platform allows distributed energy producersiii (such as solar, wind, biomass, and even spare diesel generators) to sell surplus power to consumers connected to the national electricity. Having a solution compatible with major cities is expected to be more scalable with greater adoption across the community.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
13
“Through Synergy, individual energy producers will be able to register and list their surplus energy onto Marketplace 2.0 platform, allowing them to trade with other small-scale energy producers. By dealing directly with the off-taker, producers get better financial returns. Our solutions are also built to accommodate major settlement structures in different jurisdictions. In some jurisdictions, it may be required for ELECTRIFY to register or partner with a retailer entity to execute P2P trades.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
14
“Synergy will offer open-source SDKs allowing any distributed energy producer to offer their surplus energy to any consumer. The community can access these options on Marketplace 2.0. … Renewable energy assets can either be embedded within a building (e.g. household solar with partial self-consumption) or a standalone asset (micro wind turbine system that is directly connected to the grid, without a direct load). Both ways, the producer can use ELECTRIFY’s PowerPod that logs power production, allowing the owner to trade it with a consumer on the blockchain. All producers will be required to place a deposit in ELEC tokens throughout the duration of the contract to incentivise honest activity on the network. The amount of ELEC tokens will be proportional to the size of the energy system, typically represented in units of Kilo-watt Peak (kWp).”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
Sources – PowerPod
15
“ELECTRIFY has developed a prototype of the PowerPod, an IoT communication device that will read smart meters to log the amount of electricity generated or consumed on the blockchain. This will be used by energy producers to track their energy generation. The distributed ledger will form an immutable record that will substantiate the record of RECs generated and consumed.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
16
“As security and authenticity is crucial in ELECTRIFY’s ecosystem, we will create incentives for all energy producers in the community to uphold integrity and honesty. This also discourages fraud or tampering of hardware. There will be permissioned access, requiring each small energy producer and retailer to place a deposit in the ELEC token to register his/her system with the network. Depositing the required amount of ELEC tokens will allow the producer to write generation data onto the blockchain via the PowerPod.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
17
“PowerPod allows smart metering and monitoring of distributed generation. With a transparent and trust-less method of monitoring, energy asset owners are able to closely monitor their energy production and trade directly with consumers. For consumers, the PowerPod will be an optional device that they can purchase to monitor their energy usage in real time. With real time energy data, consumers will also be able to tell when they use the most amount of power and adjust their usage patterns accordingly.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
18
“In addition, the PowerPod might include functionality to allow consumers to participate in demand response (DR) programmes. DR allows consumers to reduce their power consumption when the grid is undersupplied in order to reduce overall system demand. This is most applicable in cities with lower power reliability. This allows participants to receive revenues from the energy market operator by reducing their loads. DR requires close monitoring and tracking of energy consumption and their adjustable energy amounts. Upon activation of a DR event, consumers require a means of reporting their participation details to the regulatory body and market operator that is auditable and immutable, with a strict requirement for data security and recording. This is where a distributed ledger can be used in ensuring that all DR activities are legitimate and transparent between the participant and the energy market operators.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
Sources – Token & Platform
19
“Circulating Supply: 447,849,572 ELEC; Total Supply: 750,000,000 ELEC”
CoinMarketCap; Official Website; ELEC Token page; 01.09.2018
20
“Now, where does ELEC come in? The ELEC token is the lifeblood of Synergy. It is what gives producers and prosumers access rights to our blockchain platform; it allows them to place deposits and pay transaction fees. … As a utility token, ELEC allows producers and prosumers to create smart contracts and offer energy plans to consumers. To do so, they must first place a deposit of 200 ELEC per kWp (kilowatt-peak). The deposit, which will be refunded upon withdrawal from the ecosystem, serves as a mechanism to disincentivize malicious behaviour on our platform. For example, any tampering with our PowerPod IoT device to doctor information will lead to the slashing of one’s deposit.”
Electrify.Asia; Official Blog; Tokenomics; 15.08.2018
21
“Plasma is a blockchain scaling solution designed by Joseph Poon and Vitalik Buterin that uses child chains reporting to root chains (i.e. Ethereum) to increase transaction throughput without any of the safety concerns that usually come with using smaller chains. The OMG (OmiseGO) decentralized exchange was designed in anticipation of Plasma. We’ll utilize Plasma to support a scalable, fully on-chain exchange without sacrificing security. In this piece I’m going to describe how we’re building Plasma.”
David Knott (on OmiseGO Network); Medium; Construction of a Plasma Chain 0x1; 16.01.2018
22
“All recurring electricity payments will be done via ELECTRIFY’s eWallet from consumers to energy providers. ELECTRIFY will receive a transaction fee from energy providers. With the use of OmiseGO’s wallet technology, the transaction fee charged to energy providers is expected to be significantly lower than the rate that producers pay the banks or card schemes today. We currently estimate that transaction fees will be less than 1% of transaction value. A portion of this fee will be returned to consumers to reward them for their loyalty, according to a tiered table that incentivises long-term usage and ownership of ELEC.”
Electrify.Asia; Official Website; Technical Whitepaper; 10.12.2017
Sources – Partnerships
23
“The team stands proud alongside the Tribe to announce that Electrify has signed a Memorandum of Understanding with TEPCO, the largest electric utility in Japan (4th largest in the world), with operations spanning from electricity generation to retail and distribution. Our partnership with TEPCO involves co-developing a Proof-of-Concept (POC) for our P2P energy trading platform, Synergy, in Singapore. Following that, an implementation of Synergy’s architecture in the Japanese market beckons. There are no heroic moments to recount. There are only intents and outcomes. We set off with the intent to establish presence in the Japanese market, and we are now a step closer to realising that as an outcome.”
Electrify.Asia; Medium; Befriending Goliath; 13.04.2018
24
“Earlier this month, Japan’s TAKE Energy Corporation (TEC) entered into a partnership agreement with ELECTRIFY to deploy our peer-to-peer trading platform SYNERGY together with our PowerPods in Japan’s Kyushu region. Consumers in Kyushu will soon be able to trade excess solar energy from the region’s solar farms with the ease-of-use, transparency, and security provided by ELECTRIFY’s blockchain platform. … Following the partnership with TEPCO, Japan’s largest utility company, signed in April this year, ELECTRIFY is well-positioned for expansion into Japan in the later half of the year. Both agreements now cover two out of eight regions in Japan including the metropolis of Tokyo, and potentially serve over a third of the Japanese population across central and southwestern Japan. This collaboration is also in line with Japanese policy goals of increasing the country’s solar and overall renewable energy use.”
Electrify.Asia; Medium; Japan’s TAKE Energy Corporation Brings ELECTRIFY’s SYNERGY Platform and PowerPod to Kyushu; 25.06.2018
25
“We’re thrilled to share with you today that Electrify has entered into a partnership agreement with Narada to roll out our PowerPod solution with their network across APAC. In an agreement signed with the South East Asia arm of China’s publicly listed Zhejiang Narada Power Source Co Ltd, Narada will leverage Electrify’s technology to enable traceability, real-time trading, and optimization of distributed energy storage assets across its operations in APAC, with a view to deploying solutions in Singapore, Australia, Japan, and Cambodia in 2018. Under the terms of the partnership, Electrify will deploy its PowerPod technology alongside Narada’s energy storage platforms. … Headquartered in Hangzhou, China, Narada boasted the world’s second largest energy storage capacity in 2017, according to Bloomberg with gross revenue in excess of US$1.376 billion from the 150 countries it operates in globally.”
Electrify.Asia; Medium; China’s Narada partners with Electrify to roll out Smart Electricity Solutions across APAC; 01.06.2018
26
“To this end, Electrify and the National University of Singapore (NUS), acting through its Solar Research Energy Institute of Singapore (SERIS), have formalised their intention in a Memorandum of Understanding to pursue collaborative research and development into:
(i) PV-related technology for distributed power generation and,
(ii) energy management and trading with blockchain technology.
SERIS is Singapore’s national institute for applied solar energy research, funded by Singapore’s National Research Foundation (NRF), Singapore Economic Development Board (EDB), and NUS.”
Electrify.Asia; Official Blog; Working on Research and Development; 20.04.2018
27
“To bring greater value and choice to users, Electrify is developing a smart contract-driven energy marketplace across Asia. This ecosystem includes the deployment of their proprietary IoT device, the PowerPod, which accurately tracks and audits production from small-scale energy producers before logging the data onto a blockchain, a key factor in P2P energy trading. The resulting data generated from PowerPod devices can potentially contribute to maintaining grid intelligence and stability, as well as provide edge data for other companies to access. In a few months, Electrify.Asia users will be able to sell their data through Streamr’s Marketplace to scores of potential subscribers around the world such as research institutes, private companies and the grid operators themselves.”
Streamr; Medium; News: Electrify & Streamr partner to give users control over their data; 29.03.2018