Charles H. Miller
Another day, another use case for the blockchain technology. This time we bring you the story involving the use of decentralized computing in the energy market, with an up-and-coming platform aiming to streamline the energy use while stamping out energy waste and misuse. As a result, the system should eliminate imbalances between supply and demand.
The blockchain marketplace
The name of that company is Bittwatt and it believes the industry needs to adapt if soaring demands for energy, especially among the developing countries, are going to be met safely. And so it is working on a blockchain-enabled marketplace that will share consumption data in real time, while allowing buyers and sellers to trade energy based on their requirements.
Additionally, Bittwatt’s ecosystem would go beyond energy dealers to include power plant operators which in turn could know when to increase output levels (at times of high demand); as well as end users (consumers and businesses) who would be able to sell the unused electricity to reduce pressure on the grid.
The company is co-founded by Cristian Hagmann and Daniela Cristina Stoicescu. Mr Hagmann has worked in the energy industry for more than 20 years and serves as general manager, while Ms Stoicescu — who will serve as a CEO — is presently the general manager of a power supply company.
Bittwatt’s advisory team includes seasoned tech entrepreneurs and blockchain developers, including one expert who previously worked as a consultant for IBM.
Keeping the price of electricity stable
This is the part I don’t quite understand as keeping prices stable doesn’t work in dealers’ interests. Nonetheless, Bittwatt believes its demand-response mechanisms will ensure that existing energy resources are used to their full potential, and as a result – reduce volatility in electricity prices. Perhaps the idea is to make up profits from the price difference with increased volume of transactions…
Anyhow, Bittwatt recognizes the problem of pressure being put on electricity grids because production levels cannot be speedily adjusted to reflect demand. And purchasing surplus energy for later use is impractical because costs soar and it is difficult to anticipate future demand with precision.
Explaining the problem, Bittwatt says that “costs are piling up and losses in the network are being incurred from slow and outdated workflows.” Add current large amounts of paperwork, and bureaucratic processes and delays to the mix and you get a system(s) that are unsustainable in the long run.
At very least these indirect costs end up making their way back to consumers in the form of higher bills. And Bittwatt wants to do something about it.
Modern solution for modern problems
From what we’re reading, Bittwatt is not the only company trying to solve the “energy conundrum.” It, however, claims to have an advantage over other platforms for several reasons — including the fact that it already has some consumer base, that third-party applications can be integrated into its platform, and that no regulatory changes are needed before its ecosystem can be launched and embraced by the energy industry.
Speaking of ecosystem, the company has already formed relationships with several established companies in the Eastern Europe, including Macedonia-based Future Energy, Energy Market in Bulgaria and the Romanian supplier Eva Energy. Moreover, Bittwatt has also struck up a partnership with Crypto One-Stop Solution (COSS) and is listed on their cryptocurrency exchange platform.
The energy token and the roadmap
Bittwatt has its ERC20-based token called BWT, and the value of each token is approximately equivalent to the cost of one kilowatt hour of electricity. Also, the token’s value is based on the total amount of energy being transacted on the Bittwatt platform, which may help eliminate speculation from the market.
The company expects its platform’s final smart contract protocol to be ready by June, with mobile apps for consumers and operators to follow in November. From there it will work on finalizing B2C and B2B versions of the marketplace and, if everything goes as planned, release them in January 2019.
Bittwatt’s pre-ICO was held in March, during which the company has reportedly raised $10.8 million. The first phase of its ICO began on March 23, with early investors being offered a 20 percent bonus until April 15. Then, three further phases will take place, each lasting two weeks long, with the ICO fully concluding on May 27.
