Energy, reimagined through Blockchain applications. Vinod Tiwari Global Head of Business Development
About Us Our blockchain technology enables three things... Energy Trading Efficient Carbon Renewable Asset Markets xGrid Financing 01 02 03 C6 uGrid Asset Germination Events C6+ VPP 2.0 The Democratization of Power
Solar PV Uptake Key Drivers PV - Installed Capacity, NEM-wide (MW) Source: AEMO • Falling system costs make solar PV Commercial Residential PV only PV + storage competitive with or without subsidies 20,000 • Increasingly more viable for SME and 17,500 PV - Installed Capacity, NEM-wide (MW) industrial customers 15,000 • Around half of mass market PV generation is exported to the grid 12,500 • Rapid uptake of rooftop PV continues to 10,000 reduce peak demand and operational 7,500 consumption 5,000 • Rooftop PV installations are forecast to grow at avg. annual rate of 8.7% 2,500 0 2017 2022 2027 2032 2037 Financial Year Ending The Democratization of Power
Distributed Battery Uptake Key Drivers Installed capacity of battery systems, 2018-19 to 2027-28 financial years Source: ACIL Allen • Grid defection Low - total High - total Expected - total • Regulations allow greater integration of Low - annual new High - annual new storage into grid Expected - annual new • Li-ion price declines 700 70 • Price declines drive long-duration growth 600 60 Annual new installed capacity (MWh) Total installed capacity (MWh) • Utility-scale solar and storage 500 50 • Greater number of regions emerge 400 40 • Use of energy storage to defer 300 30 transmission and distribution upgrades 200 20 • Revenue streams diversify 100 1 0 ...Uptake has been under-forecast before. 0 0 Should we be doing more to prepare? 18- 19-20 20- 21- 22-23 23-24 24-25 25-26 26-27 27- 19 21 22 28 The Democratization of Power
Grid Defection Grid defection is fundamentally driven by economics, but emotional drivers also come into play. Economic Drivers: Economic Drivers • Falling solar PV costs • Decreasing export tariffs • Increasing electricity prices Emotional Drivers: • Being more ‘green’ Emotional Drivers • Greater autonomy • Control over future energy costs The Democratization of Power
New Global Wind and Solar Capacity The Democratization of Power
Global Battery Storage Deployments The Democratization of Power
Consumer Price Index vs Cost of Electricity The Democratization of Power
The Cost of Clean Energy is Falling Worldwide The Democratization of Power
Cost of Battery Storage is Falling The Democratization of Power
Australian Homes with Solar PV The Democratization of Power
Increase in Network Charges Increase in network charges is linked to Network cost component of annual electricity bills for representative consumer increase in uptake in PV. Source: AEMC SEQ NSW ACT VIC % residential dwellings TAS SA WA NT with PV installations State $1,000 QLD 32.60% SA 32.10% $900 Regulated networks - cost $/year WA 26.10% $800 NSW 17.80% $700 VIC 15.60% $600 ACT 14.20% NT 14.20% $500 TAS 14.210% $400 17-18 18-19 19-20 20-21 The Democratization of Power
The Utility Death Spiral Growth of distributed Reduced usage of the 03 Higher rates 01 renewables on the 02 grid, no reduction in fixed system cost The Democratization of Power
We decided to develop a market- making technology that would help bridge the gaps in the system and make it more fluid and responsive. The Democratization of Power
Blockchain Technology • Removes friction and aides every • Delivers traditional architectures... part of the renewables market to... ○ Greater transparency Trade energy easily ○ Immediate dividends 01 ○ Increased automation Invest in renewable assets ○ Streamlines price discovery 02 ○ Eliminates risk of human error Make carbon markets easier 03 Giving the energy transformation the best possible chance... The Democratization of Power
This is what a decentralized electricity system looks like... • Consumers empowered • Clean • Resilient • Affordable • Value creation for all players The Democratization of Power
Clean Resilient Affordable Consumers empowered Value creation for all players
How we use the blockchain RECs/ Carbon Asset tokens Energy buy and sell Token creation and credits value transfer Income streams Income streams + - + - + - + - + - + - Blockchain and smart contracts Fractionalisation of ownership Smart meter data Asset Germination Energy trading
The Dual Token Model Application Hosts buy POWR tokens POWR Smart Bond: generates Sparkz Consumers kWh End users buy and sell Prosumer s The Democratization of Power
μGrid Peer-to-peer electricity trading behind the electricity mastermeter (microgrids). Blockchain BENEFITS House 1 House 2 • Tenants access cheaper, greener electricity • Can be implemented on greenfield and brownfield developments • Improved visibility over energy consumption • Potential revenue stream for building managers • Improves sustainability of development Exports Imports +$ -$ FEATURES • Real-time settlement • Detailed billing and usage data Electricity Grid • Automatically converts electricity credits to fiat currency Smart • Meters Transactions viewable on the blockchain The Democratization of Power
xGrid Peer-to-peer electricity trading across the regulated electricity network. BENEFITS • Competitive advantage for innovative retailers to obtain and retain customers • Enables more customers to access low-carbon energy • More competitive electricity prices for consumers • Better returns for customers generating excess energy • Supports overarching energy system FEATURES • Real-time settlement • Detailed billing and usage data • Automatically converts electricity credits to fiat currency • Transactions viewable on the blockchain The Democratization of Power
VPP 2.0 Enables energy companies to automatically manage supply and demand. BENEFITS • Reduces risk and cost for energy retailer • Consumers contribute to solving price spikes and demand shortages • Households with solar and batteries can sell frequency, capacity and ancillary services to their energy company • Faster payback period for household on their battery • Daily settlement FEATURES • Automatically manages supply and demand • Real-time capacity management and load shaping • Optimization of uses for highest value The Democratization of Power
VPP 2.0 Singularity of Purpose Virtual Power Plant ’s have been proposed to achieve... Energy arbitrage Load shaping Power quality management Ancillary services Black start capacity Self-healing network services ... But not at the same time . The Democratization of Power
VPP 2.0 Optimization Opportunity As the value of the mode of operation increases, the opportunity for deployment decreases. Financial Benefit PRIORITY OF SERVICE MODES OF OPERATION Frequency of Deployment P6 - Peer-to-Peer Trading M6 - Self-Healing Networks P5 - Network Control Services M5 - Load Shaping P4 - Power Quality Management M4 - LFAS Market P3 - LFAS Market M3 - Power Quality Management P2 - Load Shaping M2 - Network Control Services P1 - Self-Healing Networks M1 - Peer-to-Peer Trading Smart contracts – self-executing contracts for service allow transition between service modes. The Democratization of Power
VPP 2.0 VPP 2.0 Benefits Real-time capacity Automatically manage Optimization of management and 01 02 03 supply and demand uses for highest load shaping value Faster payback period Minimize price Reduce risk and cost for households on spikes and number 04 05 06 for energy retailer their battery of blackouts The Democratization of Power
VPP 2.0 This is what a decentralized electricity system looks like... • Consumers empowered • Clean • Resilient • Affordable • Value creation for all players The Democratization of Power
VPP 2.0 Integration Physical Control System TSO / DSO / VPP Network Market Operator / Retailer Control System Participant s Identify Calculate Requirements Fault Management Existing request Existing control signals signals Economic Day Ahead Market Optimisation Request Instruct Control Frequency Control Confirm Power Quality Smart contract Smart contract bridge bridge Voltage Support Report Smart contract Facilitation fee bridge Compensate Facilitate Receive Compensation Compensation Value transfer Value transfer Financial Control System The Democratization of Power
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