Will the payment system affect to energy? It is believed, by ensuring a healthy payment system, the volatile energy prices in the international world can also be allocated as a domestic economic power through an increase in domestic demand based on the stability of the payment system. By utilizing blockchain technology, the energy payment system will be healthy. Blockchain is a public digital ledger that records all ongoing digital currency transactions in a scattered computer network. Once they are recorded, the transaction can no longer be edited or deleted so that all recorded transactions can be tracked and trusted. WePower comes to you using blockchain technology to create a healthy payment system.
WePower enables renewable energy producers to raise capital by issuing their own energy tokens. These tokens represent energy they commit to produce and deliver. The WePower blockchain solution is currently recognized by Elering, one of the most innovative Transmission System Operators in Europe.
To optimize the financing cycle and open access to capital, WePower enables energy tokenization. Tokenized energy represents a contracting mechanism between an energy producer and energy buyer.
WPR token holders will have priority access to participate in auctions for purchasing tokenized energy once the renewable energy plant is connected to the platform. Energy allocation will depend on the number of WPR tokens held by the participant. Moreover, WPR token holders are rewarded by no less than 0.9% of tokenized energy donated directly by the renewable energy providers. WPR token holders may use or sell this energy.
WePower comes to the market at a crucial time. Due to a drop in subsidies and increased renewable energy development competing at market price, banks started increasing demand for own capital decreasing debt to capital ratio. It moved from 20:80 to close to 50:50 ratio for newly developing renewable energy projects. Equity capital became a limited source of financing contributing to a plunge (-23% YoY) in investment due to smaller leverages.
Energy tokenization together with a platform built on an open decentralized data-base, opens the green energy market globally to a broad pool of investors. In an open platform, new energy projects do not depend on only local investors, Asset liquidity allows more favorable capital-to-debt ratios without using Government subsidies. they are estimate that the simplification of the investment process through WePower will significantly reduce financing costs, which is eventually split between renewable energy producers and consumers/investors.
WePower is a blockchain-based green energy trading platform. WePower enables renewable energy producers to raise capital by issuing their own energy tokens. These tokens represent energy they commit to produce and deliver. Energy tokenization standardizes simplifies and opens globally currently existing energy investment ecosystem. As a result energy producers can trade directly with the green energy buyers (consumers and investors) and raise capital by selling energy upfront, at below market rates.
Energy tokenization ensures liquidity and extends access to capital. This also provides the first access to live trade in renewable energy globally, for everyone. With the potential to be integrated with IOT for purchase or exchange of energy as a base layer of the digital energy world, WePower will lead global decentralized energy transformation.
Legally, WePower acts as an independent energy supplier, allowing the WePower platform to be connected to the energy grid and the local energy exchange market as well as energy end users. WePower receives data about the produced, consumed energy, and energy price from the energy grid and energy exchange markets. Once a renewable energy producer is connected to the WePower platform, their future energy production is tokenized. Energy is tokenized based per kWh unit. One internal energy token represents 1 kWh to be produced at a certain time in the future.
Development of WePower
WePower development is divided into 3 distinct stages
- WePower Breeze – Market entrance – challenging how energy investments and purchases are made by creating the necessary technological layer
- WePower Storm – Growth of services and usability – aggregating and managing energy flws via smart contracts.
- WePower Hurricane – Establishing a new era of decentralized energy utility
All three phases completed will form the technology stack for a next generation virtual utility company, one that encompasses all technological and process capabilities of a traditional vertically integrated utility, but is purpose-built for the emerging decentralized, democratized and decarbonized world. In essence this means although it is basically a utility company, its system nodes are connected virtually, through information flows, instead of physically through energy flows. Hence a virtual utility company does not own assets, but can provide all the trading, control and asset management capabilities for these assets. The physical layer still runs on traditional power grid operators – and the virtual utility will operate within current regulatory and business frameworks. It does not require regulatory change, although success on different markets will be somewhat driven by regulation.
How it’s work ?
The WePower platform allows renewable energy producers to tokenize and sell the energy they produce. A renewable energy producer connected to the platform issues its own energy tokens within the WePower platform, where 1 energy token represents 1 kWh of green energy to be produced in a certain time in the future (usually within 4-6 months from the connection moment).
Each renewable energy plant connected to the WePower platform will organize an auction for the sale of tokenized energy. WePower token holders will have priority access to such auctions and their allocation will depend on the number of WePower tokens they have.
Each new plant will create an auction on the WePower platform for the sale of energy tokens to energy buyers with the minimum price set for each energy token, which will represent energy to be produced and delivered.
Tokenization Energy Auction
Each new renewable energy plant offered more economical energy to the users of the WePower platform through the auction mechanism, which sets the lowest price for energy per 1 kWh (or one energy token). The auction opens to WPR token holders fist. WPR token holders will have 48 hours advanced access. After this period has elapsed, the remaining energy is offered to all WePower platform participants.
The lowest price offering is set by the auctioning party. Current and historical energy prices are visible on the platform. This gives market price reference for energy and acts as a reference ceiling for the maximum energy price.
Energy is becoming decentralized in nature and the changing reality of it requires a decentralized delivery system. For the short term, a relational database may suffice, but WePower are building a decentralized application for now and into the future where the energy grid will function and optimize itself, even under extreme conditions. Scalability beyond country borders is more important than short-term pragmatism, as scalability brings more value to the system. 100% renewable energy on the grid, with variable production, on a robust system is more important than a short-term solution. WePower platform is scalable through blockchain technology beyond country borders or even continents to be a virtual utility of a new era in clean, decentralized world energy.
Relational databases are adequate in many applications and situations. However, sustainability and scalability are limited with these databases. From the perspective of sector transformation in trading and digital infrastructure creation, transforming energy production to 100% renewable, the answer was to utilize a public blockchain.
- Innovative community interaction across applications
- Provide 3rd party liquidity through exchanges and decentralized exchange protocols
- Enhanced efficiency due to smart contract elimination of intermediaries
- Enhanced security due to immutability of data
- Cheaper maintenance vs centralized database
- History of transactions and prediction of transactions
- Fault tolerance for DApps due to decentralized nature of blockchain
Main terms of WePower token sale:
Token creation will end when either the maximum number of WPR is issued or the contribution period has ended. If less than the minimum soft cap of tokens are issued, token sale contributions may be retrieved.
Token Sale Objectives
Funds raised during the contribution period will be used solely for the development and benefit of WePower. A budget has been outlined on the right, representing a scenario where their soft cap has been reached: