Programmable Energy 7, Token Use Cases 2

In the previous post we have seen the basic interaction of the application of tokens and wallets between different eco-system participants.

Now let's look at a more complicit use case for energy collectives. For now we assume a collectively owned renewable energy generating asset, like a wind turbine. If we tokenize the off take of the wind turbine, limiting here to energy (kWh) we can support the microtransactions between the wind turbine wallet and its "owners" to allow them to consume the energy as if the windturbine fraction is installed in their property.

The energy tokens will be transferred from the windturbine wallet to each of the owners, pro rato of the ownership. If the wind turbine generates more that the collective owners can consume, the excess of energy is sold on the market to party x.

We do need a retailer of last resort if there is no wind and the consumers are in need of the energy. This can be done in Europe leveraging the directive of multiple suppliers on a single grid connection.

In other cases the operating entity of the windturbine needs a retailer licence and buys energy on the market for the whole collective.

Analog to the wind turbine we can model a multi apartment dwelling where the association of apartment owners set-up a rooftop solar. Here we want the collective invested,tn also to power the, typically non meters, building facilities like water pump, lift and lights. it might also be the case that one of the apartment owners just want the lowest cost energy and buys non renewable from the retailer of last resort.

In both use cases we support the competition of multiple energy retailers while honouring the desire for consumers to participate in the energy transition by investing in renewable generation.

This setup of when en how to transfer a token is called mechanism design and is implemented as a smart contact running in the wallet. The mechanisms adhere to the behavioural aspects of the token, specified using the token taxonomy framework.

The base assumption of the use case above is fractional ownership of a renewable energy generating assets.

I have create a series of four short videos explaining the energy tokens as a module in the business innovation section of a MOOC from Tech University TU-Delft:

3?Fractional ownership use case

The not for profit foundation 2tokens.org has implemented a tokenised solution within the Dutch juristriction for solar farms. More on this in a next post.