Blockchain based Peer-to-Peer Energy Network | CleanTech Startup Idea

This Blockchain Startup Idea from the 1001 Startup Ideas collection of YoStartups is to establish a Blockchain based Peer-to-Peer Energy Network (electricity trading network ). This Blockchain Startup Idea would allow the users to take advantage of other producers who produce more energy than they need. The users with excess energy will be able to sell the excess energy through the network. The focus of the proposed startup will be to establish the network for renewable energy, preferably Solar Energy.

Market Definition | Blockchain Startup Idea

According to the International Energy Agency, the world will need to invest $44 trillion in global energy supply and another $23 trillion in energy efficiency to meet current climate policy goals and forecasted growth in energy demand through 2040. 10% saving investment would be worth $6.7 trillion by 2040.

As per a report on Allied Market Research, the global solar energy market is expected to reach $422 billion by 2022 from $86 billion in 2015, growing at a CAGR of 24.2% from 2016 to 2022. The growth of the solar energy market is driven by the increase in environmental pollution and provision of government incentives & tax rebates to install solar panels.

Competitor Analysis | Blockchain based Peer-to-Peer Energy Network

There are several companies globally which are taking on the challenge to de-centralize the energy network and putting more power in the hand of users. Most of these startups have stressed their focus around Solar energy as it is a cleaner form of energy and easier to be generated by individual users.

There are US based companies like, Leap & Omega Grid, that are looking to capitalize on the opportunities provided by the decentralized technology to advance the shared infrastructure for the energy markets.

Another similar company is Australia based, Power Ledger, that allows renewable energy asset owners to decide who they want to sell their surplus energy to and at what price. Using blockchain technology they provide a transparent, auditable and automated market trading and clearing mechanism for the benefit of producers and consumers.

Pain Point & Target Audience | Blockchain based Peer-to-Peer Energy Network

The target audience for the proposed startup would be individual homeowners who are either generating renewable energy or are looking to use the cleaner energy.

There are countries around the world where electricity prices are quite high, owing to increasing fossil fuel prices and high distribution cost. Australia is one such country where prices reach above 26 cents per kW/h. Additionally, there are places where electricity supply is not enough for the consumers, and they spend hours in the blackout.

On the other side, there is increased awareness about the renewable and clean energy, and increasing number of people are adopting solar energy over fossil fuel energy. This is leading to a large number of rooftop solar panel installations, with many individuals generating more energy that they use on regular basis, but have no options to share that excess clean energy with their community.

Value Proposition | Blockchain Startup Idea

Today, the energy market is highly centralized and monopolies decide when and where to build power capacity and load distributions. More importantly, they also determine and govern the price of electricity.

The proposed model will create value for both consumers and sellers of the energy. Consumers get access to the cleaner form of energy at the market controlled prices. They can even request energy from their neighbors at a discounted price.

For individuals with surplus energy, they can get paid for it by sharing it with the other individuals and in their community.

Business Model | Blockchain based Peer-to-Peer Energy Network

The startup will work on the marketplace model where it will facilitate the peer-to-peer energy transaction over the blockchain without the involvement of any third party. The startup can charge a commission for every transaction happening on the platform.

Beyond a certain stage, the startup will also be floating its Energy Token in which it will reward the energy sellers. With the model, the startup will have global interoperability which will help in further expansion. The value of these token will also increase with time, and can give huge returns to both the company and its users.

Way to market | Blockchain based Peer-to-Peer Energy Network

The proposed startup would first need to test the feasibility of the product in a small community and then based on the results, it should further plan the launch roadmap. Upon successful implementation of the product in a community, the startup can look to initiate ICO and crowdsource funds for the full-fledged launch.

Milestones | Blockchain Startup Idea

The startup should spend first 6-8 months to develop the hardware and software capability to launch the trial for the selected community. The community trial must be run for atleast another 6 months so as to collect the presentable data points which will go in the white paper for floating ICO.

Investment Needed For Prototyping Blockchain based Peer-to-Peer Energy Network

The startup should look to raise upto 100k USD for the product development and testing the concept in a small community. The startup can approach any crypto/blockchain specific angel investors or accelerator for raising the seed fund.

Investors / Expert Take | Blockchain based Peer-to-Peer Energy Network

With the rise of the shared economy model and the proven success of companies like Airbnb & Uber, peer-to-peer solar energy is a logical progression in the new economy. The system allows consumers to take advantage of other users who produce more energy than they need, and helps promote the use case of cleaner and renewable energy; this is the move which is going to be finding a lot of support from the regulators and environmentalists as well.

The Australian based company, Power Ledger, has turned a lot of heads with the similar idea and reached to the finals of Extreme Tech Challenge 2018, and have been invited to Richard Branson’s Necker Island to pitch their idea.

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This 1001 startup ideas article is from Yostartups, YoStartups is a Pre Accelerator, and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.

In case you are looking at scaling or launching a venture on similar lines, you can apply for our virtual acceleration program Excelrate on our website, Yostartups.com, Yostartups’ Excelrate program will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving business ideas, depending on the strength of your startup ideas, you may qualify for a discount.

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