2Tokens is excited to share the insights of the Energy Token Workshop, held on October 26th in Delft. On this day, 30 visionary participants came together to redefine the future of sustainable energy
Five teams of problem owners and experts worked diligently to create innovative token-flow templates for local energy production, utilization, sharing, and storage. These templates also addressed selling excess energy to the grid and purchasing additional energy during shortages. Our goal is to make a significant contribution to the development of global economic, legal, and technical standards for the tokenization of the energy sector.
- Local Ownership in Solar Park Energy Production: The solar park, (co)owned by local households, companies, and government institutions, harnesses solar energy to produce electricity.
- Advanced Monitoring with Smart Meters and Blockchain: Equipped with smart meters, both the solar park and the homes/businesses of participants log energy data. While direct data use is preferred, current limitations necessitate the use of a hardware device tapped into the P1 smart meter port for accurate data collection. This data is then securely recorded on the blockchain for precise monitoring.
- Energy Token Creation and Standardization: For each kilowatt-hour (kWh) of electricity generated, an energy token is minted on the blockchain, forming a decentralized ledger governed by the community.
- Token Distribution Based on Ownership and Cost Transparency: Energy tokens are allocated based on ownership percentage. For instance, a household owning 1% of the solar park receives 1% of the energy tokens. Costs are confined to actual expenses, including capital, operations and maintenance, management, grid fees, and taxes.
- Energy Allocation and Usage Optimization:
- Surplus Energy Management: If an owner doesn't use all their allocated energy, the surplus is available for sharing with other owners, storage in batteries, or export to the grid. The owners earn from selling their kWh-token from end-consumers or grid sales. An algorithm prioritizes optimal distribution following the choices of the energy community: eg. local usage, local balancing or the highest income.
- Energy Deficit Management: If an owner's allocated energy is insufficient, additional energy is sourced from other owners, batteries, or imported from the grid. The owner pays a predetermined cost per kWh. The same local-preference algorithm calculates the most efficient sourcing.
- Smart Contracts for Energy Sharing and Local Governance: Smart contracts ensure fair distribution among participants and efficiently handle surplus energy by facilitating consumption, energy sharing, storage, in- and export, and transactions. These contracts, governed by a locally adjustable algorithm, autonomously manage token transfers and track transactions, allowing the community to control and adapt these processes as needed.
Why does it matter?
The European Union puts citizens at the center of the energy transition. This happens through the support of community energy, local ownership, and the transformation of energy consumers into prosumers. In Europe, countries like Spain and Belgium already implemented new energy acts opening the way for energy sharing and peer-to-peer trading with members of the energy community. The tokenization concept Power of the Many offers new ways to make these concepts work by using decentralized administrations and smart contracts on the blockchain.
For more information, visit https://www.powerofthemany.org/
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