The decentralization of renewable energy production brings numerous challenges to the traditional electricity grid. These challenges threaten the investments in the renewable energy economy, prompting the search for alternatives. We at Enervalis believe the world is evolving to 100% green energy production and that most of the energy consumption will be electric. This is the only way to keep our climate and planet healthy. Our mission is to predict and steer the energy system with software, to support a cost-effective green energy society.
The Enervalis Smartpower Suite® started off as a technical framework that captures any type of data, controls the different assets and delivers an optimum forecasting. The forecasting services are focused on price reduction, capacity constraint relief and maximal real-time green energy consumption which are all helping a more cost-effective and sustainable green energy network. But the local energy communities require more and new mechanisms to boost the overall mass-market engagement in decentral green energy in a cost-effective way.
We need to recognize all contributors for the value they bring to the “Smart Microgrid” and allow a fair price to the consumer as well as the producer for the green consumption. That is why we at Enervalis apply the NRGcoin mechanism. Building on a concept first developed at Vrije Universiteit Brussel, we enhanced NRGcoin to operate in a real-world context.
The NRGcoin is not a peer-to-peer energy market mechanism between “buyer” and “seller”. It is an innovative technology and support policy, facilitating the way of collaboration between all key stakeholders in the low-voltage grid. The Distribution System Operator (DSO), the Energy Service Companies (ESCO’s), Balancers, Aggregators, Producers and Consumer, they’re all rewarded for the value they bring in the process. Similarly, NRGcoin is not just an alternative crypto-currency, like the existing ones that focus only on prosumers, but an incentive mechanism based on smart contracts aimed at the larger renewable energy economy.
For every 1 kWh of locally consumed green energy, consumers pay 1 NRGcoin directly to the NRGcoin Smart Contract. This ratio (1kWh=1NRGcoin) always holds, regardless the retail value of electricity. The Smart Contract then pays all grid fees and taxes to the DSO. The Smart Contract then mints new NRGcoins and rewards prosumers for their injected green energy that matched local demand. Any injected energy in excess of local demand is not paid and can even be penalized.
Prosumers can then sell those NRGcoins on a currency exchange market, or use them to pay for green energy later on. The currency market is where consumers buy their NRGcoins from, in order to pay for their consumption. The price of NRGcoin is based on market supply and demand, but is unlikely to exceed the retail cost of energy due to arbitrage (e.g. 1NRGcoin = 1kWh ≈ 0.28euro for a typical higher residential energy costing Western EU country).
NRGcoin is a technology and support policy for renewable energy. It is a decentralized mechanism based on blockchain technology and smart contracts that rewards prosumers for their injected green energy and that makes green energy more economically attractive to consumers. In doing so, NRGcoin aims to offset the consumption of grey energy, i.e. energy from mixed sources. Thus, NRGcoin helps increase the share of renewable energy sources (RES) in the overall energy mix, enabling large energy autonomy and self-sufficiency of local communities.
- It reduces the risk of policy changes to prosumers
- Incentivises the balance of supply and demand in the local grid rewards the maximum amount of green energy that can be consumed locally without over- or underpayment
- Serves as both proof of origin and payment for energy at the same time
- Lowers green energy cost of consumers
- Increases the cash flow of utilities
- Saves on government budget for renewables
- Offers a financial instrument for investment in the renewable energy economy.
As of 2018, NRGcoin is being deployed with Enervalis in multiple pilot projects in Europe.