Energy as Packets

In the shipment industry a leapfrog improvement was realized by introducing a standard unit size of cargo, we all know by its name shipping container. This unification of size and standard tip hook increased the efficiency in the logistics and reduced the prices.

The question that rises: can we introduce a container for Energy?

Energy as packets

Energy is on a physical level a continues flow of electrons that very tightly interlinks all components of the grid. But let’s do a mind exercise and assume we can have energy packets. For now, we chose an energy quantity as unit, let’s select 1 kWh.

This can be the container unit size we use in our new system, and this can be also a nice unit for an Energy Token.

This Energy Token (kWh) that represents the amount of energy begin generated, transported, and consumed.

Energy and Power

Why is there a power market and not an energy market? This has to do with the generating capacity being expressed what the generating equipment can produce at a given moment in time, that is expressed as power kW. As opposed to the energy being delivered over a certain period, that is expressed as energy kWh.

To represent the power aspect, we need a Power Token (kW).

Renewable Energy

We all have come to appreciate the difference between gray and green energy. In all but one state in the USA the proof of green energy is traded unbundled from the energy itself.

In the USA one need to trade Renewable Energy Certificates (RECs) that are called Certificate of Origin (GOs) in Europe.

To represent this renewable energy, we need a Certificate Token

Why tokens?

Continuing along this line of reasoning we construct a token system, but why do we need tokens? All information is already digital available??

In the next post we dig into this.