Here is a post I made on another similar project. Decentralization on the grid will never work for the following reason. Some of the facts could be beyond the scope for the project, but most of them apply.
Do Not Risk a Penny on this
Here is why:
1. This is not a new idea. I work for a utility company and we have been investing billions in microgrid projects. This is exactly what it is. You create a local community local grid, where people can support each others energy demands. The only exception here is that they are creating a decentralized buying/selling system.
BUT utility companies are never going to allow this, because it does not pay to maintain the traditional grid infrastructure.
There are already laws in place for exactly this reason, that people cannot sell their electricity to other people directly.
What this company, and other similar companies like trans active grid are doing is creating a token to make that sell-buy to get around that law(which states money isn't to be used).
Here is what will happen after. Governments will realize people are trying a way around and will BAN any asset trading that would lead to violating that law. All the money invested in these companies and their platforms will collapse.
Utility companies in the near future will be launching microgrid systems.
2. Volatility in the Token Market: The token that the company is selling again is not real money. They will be used in the platform they are launching, which means people will be buying and selling it ultimately leading to a market for that token on an exchange.
So if I am a person in a small society looking to participate in a decentralized energy production and buying platform, I would firstly have to buy these tokens, and then sell it to meet my real life demands.
But this token will be traded on an exchange, the price will be volatile just like bitcoin and hence a normal person would simply not be interested in such a technology due to the price variation in the tokens. Because that could mean losing money by selling to the platform as theilr sole incentive was to be informed on who they are selling to, and getting slightly higher price than selling to utility companies.
3. No Need for Decentralization on grid : Governments around the world buy electricity on smart grids at competitive prices. There is really no need for decentralization of grids except in third world countries where there are problems such as energy shortage etc. because utility companies have a monopoly and benefit by power outages.
But I predict that as smart grids evolve, companies like Tesla will take care of the buying/selling platform by offering something like Uber. But again that requires privatization of the grid.
And all the subsidies and incentives government provides are only to those selling and buying from the grid. They won't offer it for a private microgrid.
4. Smart Meters:
Utility companies have started providing free smart meters to its customers. What this company intends to do is use the blockchain for accounting of the electricity produced and used. But it will require customers to install separate meters which would cost a lot. Things will go wrong, and will need to be fixed.
5. Storage: Storage is currently a big issue for solar. Installing a solar system is expensive, but installing a storage system/batteries is even more expensive. Hence most of the houses that buy solar, usually do it as to only satisfy 60-70% of their electricity needs. A lot of those houses usually do not generate an excess. This means what this entire project is relying upon i.e community buying and selling is not going to be a big thing in a neighborhood.
What I am trying to say is , that blockchain and grids is a great combination. But utility companies have already started doing and investing in it. In general there is no reason for one resident of an area to see the production/consumption of another, which means that there is no need for a decentralized electric grid system. People have meters in their home and all the data relevant to them is already transparent.
All these companies are doing great work, but I don't think a Token sale is the way to go because once the token is on an exchange, it will kill the motivation of the local resident to even participate in that purchase/sale. What these companies need to do is find investors for a direct investment than creating an altcoin to just get more money, which I feel is the scammy part.
First question to your writing from us: From where are you? Different countries has different legislation and that is why we will allocate 10% of all raised money to legal matters.
1.
We never claimed that is a new idea. We just believe we are the first one that will be actually able to pull this off. Most of our team is coming from Energy sector and understands all details about how this market is working. We are trying to build energy-trading platform where producer will be able to directly sell production to final customers without the need of retailer who acts as a middleman.
Clearly you copied your this post from other thread and did not even bother to check out our idea. If you would do that then Id see we are not trying to cut out national grid. National grid will still take care of distribution and customers will still need to pay for it. The only thing we will change is connecting two opposed sites together. Other aspects will stay as they are.
Why we asked you about from which country you are? Because different jurisdictions need different approach. In EU countries energy market is liberalized so governments cannot decide on how can use grid and who cannot. So again, please check our project before you call it a scam.
2. We are developing mechanism that will neutralize volatility affect. Actually, our platform will be made in a way people without any knowledge of blockchain will still be able to use it in a traditional way. System behind platform will make it as easy as possible even to people that do not want to educate themselves about this new technology. And we strongly believe this is the right approach as we will reach all of the population.
3. This is not true. In EU you can see there are many countries that are trying to build systems where production of electricity is localized. Take for example Germany. They are shutting down nuclear power plants and as well coal power plants and try to take advantage of solar and wind power. And those solar power units are built locally on private houses etc. We do not believe grid needs to be privatized to encourage investments into green technologies and Smart grids.
4. Again, you are stating something that is not true. We will use existing meters and existing grid.
5. Our entire project is
NOT relying upon storage capacities and we did not state that anywhere. Maybe project stated that where you posted original post but we for sure do not thing storage would be relying point. We have solutions for energy shortages during the night and during bad weather. Keep in mind we will not use only solar power plants but also other renewables. We will also do hybrid system so we are not worried about that.
One last thing. At least we agree on something: blockchain and energy grids are great combination indeed. But here is a question to you: Why would one need to sell electricity to utility company which sole purpose is to buy cheap and sell expensive? Why would not this particular person rather take some of utilitys margin at keep it for itself and on the other end why would consumer buy electricity with high margin if end-price can be lower?
We are doing token sale because we are not big retailer company but are rather small and want to disrupt big players in energy sector. The same as Bitcoin did in financial sector.
