The following FAQ aims to break down the project from as many aspects as possible. It can be used as a guide to easily understand the extent of the company’s spectrum of activities. All the details about the project are available in the Whitepaper, published on our homepage. If you have any additional questions, feel free to contact us using: firstname.lastname@example.org.
1. What are the main components of the electricity supply chain and how does it work?
The electricity supply chain is usually organized into four categories: Generation, Transmission, Distribution, and Retailing
2. What types of electricity markets are there and how would regulations differ from one market to another?
Globally, electricity markets can be divided into two distinct groups: Regulated and Deregulated Markets.
In regulated markets, a single vertically integrated monopoly operates the four electricity supply chain entities. In deregulated markets, market participants other than utility companies own power plants and transmission lines. Consequently, producers sell their output into a wholesale market. Then, retailers purchase this electricity to sell it to end customers. Utilities still own and are responsible for operating and maintaining the transmission grid, and for billing customers
3. What is the wholesale electricity price?
In deregulated markets, retailers buy the electricity at a wholesale price, which is cheaper than the full retail price. The main four cost components are usually: Energy: The actual electricity generation cost Capacity: the cost of making a resource available for dispatch when needed Ancillary services: additional service cost to ensure grid stability and smooth and uninterrupted operations Transmission congestion & losses: the cost associated with delivering power across congested transmission lines with insufficient capacity and losses from transmitting power over a distance Through a combination of Auction-based market pricing, Real-time pricing, and binding contracts, retailers bid to buy electricity in an operation that is overseen by the ISO (Independent system operator)
4. What’s an electricity retailer?
Electricity retailers or simply retailers constitute the entity that is responsible for administering and billing consumers. Their role evolved over time especially following the deregulation trend, and switched from an essentially administrative function within an integrated utility, to a risk management function within a competitive electricity market. Retailers usually offer fixed or variable prices for electricity to their customers and manage the risk involved in purchasing electricity from spot markets or electricity pools.
5. What’s a micro-grid?
A micro-grid is a localized group of electricity generation that normally operates connected to and synchronous with the public electrical grid, but can also disconnect to “island mode” and function autonomously as physical and/or economic conditions dictate. Islanding and resiliency are two key aspects of a micro-grid.
6. Is investing in renewable power plants profitable today?
It has never been more profitable than what it is in 2018. In an article published by the “United Nations Environment Programme” in April 2018, Solar energy was found to dominate global investment in new power generation. The falling costs for solar electricity, and to some extent wind power, is continuing to drive deployment. Last year was the eighth in a row in which global investment in renewables exceeded $200 billion.
7. What are DERs?
Distributed Energy Resources, or DERs, are small-scale, grid-connected devices that are responsible electrical generation and storage. DERs systems typically use renewable energy sources, including small hydro, biomass, biogas, PV solar, small wind turbines, and geothermal power. They increasingly play an important role in the electric power distribution system. A grid-connected device for electricity storage can also be classified as a DER system and is often called a distributed energy storage system (DESS). By means of an interface, DER systems can be managed and coordinated within a smart grid.
8. What does a Solar Home System stack consist of?
Solar Home Systems (SHS) are stand-alone photovoltaic systems that supply power to remote off-grid households. In rural areas, where no grid connection exists, SHS help meet a household’s basic electricity demand. SHS usually operate at a rated voltage of 12 V direct current (DC) and provide power for low power DC appliances such as lights, radios and small TVs for about three to five hours a day. A SHS consists of cables, switches, mounts, structural parts, a storage system (Batteries), and power conditioners/inverters, which change 12/24 V power to 240V AC power for larger appliances. A SHS typically includes one or more PV solar modules, a charge controller which distributes power and protects the batteries and appliances from damage and at least one battery to store energy for later use.
9. Is it legal to trade electricity as a commodity and how?
Regulations vary widely between countries and markets. In some countries like the Netherlands and Australia, it’s totally legal to do so, besides, the adoption is gaining ground by the day. However, in other countries, Utilities and ISO are still skeptical when it comes to allowing peers to trade electricity with no control whatsoever over the operation. From this perspective, our approach is rather inclusive and aims to allow prosumers to capitalize on their excess production by matching those electrons that are causing disruptions to the grid, to consumers that want them.
10. Where and when is Electrify Network planning to launch its first solar park?
Electrify Network will establish its first solar park within six months of a successful crowdfunding event. A total of 250 MWworth of projects is under our review at the moment, most of them in a ready-to-build stage.
11. What’s Catalyst platform?
Catalyst web platform is the monitoring platform that allows token holders to check the production data of all of our managed solar parks. The alpha version of the platform is ready and can be accessed through Metamask on the following address: prototype.electrify.network. A tutorial on how to use the platform is ready and will soon be made available. The platform actually runs in test mode, on the Ethereum Blockchain.
12. What’s PowerChain?
PowerChain is a Blockchain peer-to-peer energy marketplace, that allows electricity trading, by means of an exchangeable, stable energy trading token, I.e., the LIGHT Token. LIGHT tokens are priced, issued, and redeemed in the local currency for a given platform user, in a given geographic location.
13. What’s EDEN Token?
EDEN token is an ERC20 compliant utility token that will grant access to both Catalyst and PowerChain platforms. Token holders by purchasing will contribute in launching our power generation activities and will get rewarded through airdrops for holding the Token in their platform-embedded electronic wallet.
14. What’s LIGHT Token?
LIGHT tokens are local market level tokens, and are consequently priced for the exchange market they are deployed in. They allow for frictionless transactions throughout the platform. In deregulated markets, where platform users are legally allowed to trade directly with each other, platform users will be able to convert EDEN tokens to LIGHT and vice versa, so to transact on the platform. In a way, EDEN tokens are sort of the global token that grants access to the platform, while LIGHT follows the wholesale electricity price in the local currency of the market the platform user lives in.