07 Feb Power Ledger
Power Ledger (POWR): Uber For the Energy Sector
Published: 7 Feb 2018 | Updated: 13th December 2018
The world’s electricity system is being completely re-imagined. Within peer-to-peer network, users can trade their energy without a middleman. Power Ledger’s tech is putting the power back in the hands of the people.
For one reason or another, electricity is one of those things that the average person doesn’t care about.
Sure, it’s used to power pretty much everything in our homes, but if you asked Joe Sixpack to tell you where the energy that powers his bar fridge comes from, you’d probably be given a blank expression and a shoulder shrug.
We plug in what we need, pay our bills and that’s it.
On the other hand, there are people out there that we call renewable energy adopters. These people are few and far between. Except for a few lucky people from countries with innovative energy programs and lucrative rebates, people that have personally chosen to pursue renewable energy can safely call themselves early adopters of this technology.
Early adopters hey – does that remind you of anything?
Hint: it’s the reason you’re reading this publication right now.
We’re talking about the cryptocurrency market.
Just like renewable energy, if you’re investing in cryptocurrency right now you’re an early adopter.
“But London Letter! Everyone has heard about Bitcoin – even my Grandpa! We’re not early adopters at all!”
According to the mainstream media, Bitcoin has already died 249 times (if not more!). In fact, the recent market correction might make you believe the crypto’s end is coming but this couldn’t be further from the truth. Drastic corrections are to be expected after a period of explosive growth; similar to what we’ve experienced in the last few months.
Have you heard of renewable energy before? You surely have. Ask your parents, siblings or kids to give you an example of a renewable energy source – we bet that you’ll hear the words ‘solar’ or ‘wind’, but not much more.
Here’s the thing: pretty much everyone knows about renewable energy – but the statistics show that the vast majority of people don’t source their home’s energy from solar or wind, despite the fact that it is getting rapidly cheaper and can save you money in the long term.
In both cases the mainstream adoption is not there…yet.
But it will be.
Now, imagine that you could profit from the emergence of both of these new sectors.
That’s why today, we’re recommending that our readers take the next week off work, and install solar panels on their rooftops.
Today, we’re giving you the chance to be an early adopter (or should we say investor) in the world’s leading renewable energy blockchain project.
It’s called Power Ledger. And it’s going to be enormous.
Power Ledger is disrupting the current state of energy distribution. There’s no need to prove to you that the energy sector is huge. It’s the fundamental need of power-hungry societies all over the globe.
And with the adoption of Power Ledger technology and its finite token supply, we think that the value of POWR is going to explode in 2018/19.
And for reference, by ‘explode’, we mean that we could see a $7 billion market cap by mid next year.
That’s over 30x gains. And no, that isn’t a typo.
Goldman Sachs forecasts that by 2020 the cost for renewable energy will be less than the current power price.
Furthermore, they forecast that there will be over $3 trillion in wind and solar investments over the next 3 years. And it’s projects like Power Ledger that are set to receive a huge slice of that $3 trillion pie.
Uber for the Energy Sector
You’ve used Uber before, right? Or at least a similar app like Lyft or Grab?
The Uber ecosystem connects drivers and people in need of a ride within seconds. Compared to a taxi, it provides lower costs for passengers and high returns for Uber drivers by cutting out the middleman.
Yes, Uber is kind-of a middleman in the sense that it takes a cut from all fairs. But their system lowers the entry barriers for taxi driving and allows anyone to become a driver and make money from their car.
Since their app launch in 2011, the taxi industry has been flipped on its head.
That is what makes Uber the highest valued private startup company in the world.
Power Ledger brings a similar solution to the renewable energy industry.
Currently, the people who are willing to invest in solar energy face one major obstacle: the time that it takes to receive a return on investment. Depending on where you live, this time can be from a couple of years to even a decade.
Now, think about the world we live in…
We live in a world where the vast majority of people don’t want to eat healthy and exercise; they want some kind of magic pill or liposuction to make them fit.
We live in a world where people prefer to talk via messenger, rather than meet face to face. They habitually scroll through their Facebook news feed to get the sweet dopamine hit when their friends like their posts. To put it in a nutshell – nowadays people are getting more and more impatient due to the fact that literally anything is just a few clicks away.
Do you think the average person in this world is going to wait up to 10 years for their solar panels to pay themselves off?
It’s an absolute no-brainer what hinders folks to make a step towards possessing a renewable energy source. It’s the perception that it takes a long time to get your money back and profit from it.
Power Ledger’s revolutionary platform provides an obvious yet brilliant solution. With its technology, people can sell their surplus energy to the local community; massively shortening the time it takes to get a rate of return.
So, even if your household doesn’t consume as much energy as your solar panels provide, you can start profiting straight away by on-selling your excess power.
Basically, Power Ledger will allow people to see a return on their investment way, way faster.
And what happens when you are able to get money back faster than the average folks?
Everyone wants to get their hands on it.
Just like with the crypto space, people are shifting from traditional stocks because of the speed of the returns on an investment.
Now, you are in a unique and incredibly fortunate position. You can invest in a project that 1) is a low priced cryptocurrency and 2) aims to revolutionize the rapidly growing, yet still not mainstream renewable energy sector.
That’s what we call hitting two birds with one stone.
P.S – London Letter does not condone cruelty against birds.
If you’ve read any of our previous publications, you’d know that we put a huge value on the quality of a project’s team. After all, we aren’t just investing in technology – we are investing in people that can deliver.
Fortunately, we think that the Power Ledger team is as bright as the sun that shines on our solar panels (sorry, we couldn’t resist).
If you’re keen on investing or entrepreneurship, you’ve probably heard of the name Bill Tai. We can sum him up in three words: legendary venture capitalist.
Tai knows how to pick a good startup: he was a seed investor for Twitter/Tweetdeck, Canva, Color Genomics, Wish.com and Zoom Video.
With an MBA from Harvard, Tai has served as Board Director for 7 publicly listed companies. Currently based in the Silicon Valley, Tai is a Board Advisor and ambassador for the Power Ledger project.
But let’s move on to one of the most known women in the cryptosphere – Dr. Jemma Green. This innovative lady is the co-founder of Power Ledger and could best be described as ‘a champion of change’.
After working in investment banking for 11 years in London, Dr. Green returned to her hometown of Perth, Western Australia and pursued an academic career. With a Doctor of Philosophy from Curtin University and a Masters in Sustainability Leadership from University of Cambridge, Dr. Green has amassed a wealth of management experience, including board positions at Water Corp, Heritage Perth and Carbon Tracker and a position as the Chair of Climate-KIC Australia.
In addition, Green is a councillor for the City of Perth (and was formerly the acting Lord Mayor of Perth).
Last but not least, let’s talk about David Martin. We can sum David up in two words: ‘industry expert’.
With over 20 years’ experience working in the electricity industry, David has held executive positions for two state-owned electricity utilities and has over 6 years experience as a senior consultant to industry participants; specializing in the regulation of distribution networks, DNSP consumer engagement, renewable/new technology feasibility studies and business development. He’s incredibly passionate about the adoption of renewables and is a perfect fit for his Managing Director position.
Whilst we have only mentioned three people that hold top-level positions, we’d like to make note of the other talented people in the Power Ledger team. For brevity, we haven’t mentioned them all in this publication: but we’re extremely confident that they are the right people to deliver this ambitious project.
Government’s Golden Child
Let’s go back to our Uber analogy for a moment.
Some people are seriously pissed about Uber’s existence.
And by some people, we mean taxi drivers and taxi companies.
Oh, and the governments that have to listen to the pissed off taxi drivers and taxi companies.
Recently, Uber lost their license to operate in London. They are still operating there… But there is a huge legal battle on their hands if they plan to stay in London long term.
And that’s just the beginning.
Uber probably won’t get banned worldwide, but governments have the ability to make it difficult for them.
In Perth, Western Australia for example, the State Government has imposed a full ban on Uber servicing their brand new, world class sports stadium.
Things like this won’t kill Uber, but they sure as hell can cripple it.
“But London Letter! Couldn’t the government do the same thing to Power Ledger? They’re trying to completely reinvent the whole world’s energy market!”
That’s a fair question.
And this is one of the many reasons we love Power Ledger. Power Ledger has already received support from the Australian government. In November last year, they received part of an $8 million grant for the Fremantle blockchain energy project.
Sure, this doesn’t mean that every Government in the world is going to be as supportive. But being backed by a large, powerful country that has strong political and economic ties with the majority of the Western World is a huge step in the right direction.
Working Product + The Branson Factor
Power Ledger is one of the few companies in the crypto-space that actually had a working product prior to its token creation.
They partnered with Origin Energy (one of Australia’s major power retailers) to run a three month technical trial back in October 2017, providing the accuracy and security of their energy trading platform.
In addition, Power Ledger has made the top 3 finalists for Extreme Tech Challenge (XTC).
No, XTC is not just another startup competition.
That would be like saying Sir Richard Branson is just another entrepreneur.
Sir Richard Branson is one of the richest people on Earth. Virgin Group (which he founded) is in possession of more than 400 companies worldwide. He’s one of the world’s most famous and most successful business icons. He was even knighted by Queen Elizabeth II back in the year 2000 for “services to entrepreneurship”.
We call Richard Branson a gold king, as he has the incredible ability to turn businesses into money making machines. He very well could make us a great deal of money, too.
XTC is truly on another level.
Power Ledger’s team (and other competitors) get to go to Sir Richard Branson’s Necker Island to pitch their venture to some of the best in the business, including Sir Richard Branson himself.
The XTC final is scheduled to take place in fall 2018. But we all know how fear of missing out works in the cryptocurrency space. We can expect to see the price of POWR increase substantially in the lead-up to this event.
What happens if Power Ledger doesn’t win you ask?
With the huge media attention that this competition is going to receive, we think the price will increase regardless of their finishing position.
And if Power Ledger is announced as the winner?
POWR is going to absolutely skyrocket and we are going to make life changing gains.
On that note… Without slandering any of the competing companies, we believe that Power Ledger has an incredibly good chance of winning this competition, for a few reasons.
1. Bill Tai, Power Ledger’s Board Advisor, is the co-founder of Extreme Tech Challenge.
2. Jemma Green (co-found of Power Ledger) has an existing connection with Sir Richard Branson – she went to his private island for a blockchain summit last year.
3. According to Sir Richard Branson, Extreme Tech Challenge is ‘“hunting for people and ideas that can literally change the world!”. We think that Power Ledger fits this description far better than their competitors in the final: Revl (a smart action camera company that uses AI powered editing software) and Owlet (an infant health platform that empowers parents to care for their children).
You’ve probably seen POWR before on various exchanges. But POWR is not really a currency. It’s a token that you can use within Power Ledger ecosystem.
Think of casino tokens. Sure, you might have $10,000 in tokens from your trip to Vegas – but you would be mad if you thought you could take them to a casino in Europe and exchange them for $10,000.
National currencies are a bit like this too. Try paying for a bowl of noodles in Japan with New Zealand Dollars… It’s not going to work.
But the POWR token works a bit differently. There is an infinite supply of casino tokens. If the casino runs out, they can just go and get more.
There is an infinite supply of national currencies. The government can print money to impact economic factors like interest and inflation.
POWR on the other hand has a finite supply. And this is a big win for investors.
Crypto gains aside, the POWR tokens has some very important uses which we will touch on in a second.
P2P is the way that cryptocurrencies, torrents and the like function without the need for intermediaries. It’s fast, cheap and decentralized.
Unsurprisingly, energy markets are not currently P2P. The energy providers in your area come up with a price for their product and you pay it. Not happy with their price? Have fun trying to live without power.
David Martin, Power Ledger’s managing director, sums this up pretty well:
“Imagine you’re growing a whole lot of tomatoes, but you can’t trade them over the fence with the neighbour for their zucchinis – you’ve got to go to the supermarket to sell to them and buy from them. That’s the situation in energy markets now – we want to change that.”
The illustration below is a visual representation of how the Power Ledger’s P2P system compares to the traditional grid system.
Interestingly, in some countries, the concept of excess energy selling is nothing new. The problem is that today’s solar panel and windmill owners have no choice apart from selling their energy at the dirt cheap prices that the large energy companies set.
Power Ledger satisfies both solar owners who can sell their energy at the higher prices and its consumers that still can buy it cheaper than from large middlemen.
Just like Uber, it’s a win-win situation.
Asset Germination Events
This is one of the most exciting things Power Ledger is going to launch.
Let’s say that you’re living it up in Western Australia. When you’re not dying of heat-stroke from the Australian sun, you’re out surfing on crocodiles or running away from angry koala bears (well, that is how it looks in British movies anyway).
But apart from your keen interest in surviving in the harsh desert climate, you’ve also got an interest in renewable energy.
Now, imagine that with a few mouse clicks, you can participate in the investment of an Electric Vehicle Charging Station (let’s call it EVCS) that is opening up on the East Coast of Australia. Even if you only have a little bit of money to spare (sunscreen can get expensive), you can take part in the funding and get a share of its profits in real time.
Sounds pretty cool, right?
It gets even better.
Power Ledger gives its token holders the ability to invest in renewable assets right from their computers, using the power of blockchain technology. Income from the ECVS will be distributed to assigned wallets depending on the percentage of ownership that investors have – in real time. Not only is it easy, but it opens up a whole new investment opportunity for the masses.
But why do we have to stop at just an EVCS?
Imagine that you’re on an extended vacation, chilling by the pool in the tropics of Thailand. From the comfort of your hotel room, you can become the co-owner of a solar farm somewhere in Indonesia. You don’t need any industry connections to do this – you just need to own POWR tokens.
When the Power Ledger Marketplace launches, everyday people will be able to participate in renewable asset investments – all from the comfort of their homes.
But here is where things get even more exciting…
Let’s say that you own 5% of a local solar farm. We’ve already established that you can receive its profits; but you can also sell your shares to someone else, receiving a return on your initial capital outlay.
Liquidate your shares immediately for a big chunk of cash, or receive ongoing profits for years? It’s up to you.
Power Ledger aims to deploy their marketplace concept later this year – and we’re going to see another huge increase in the price when that happens.
But investing aside, we think this whole concept is incredibly exciting. After all what we’ve described above, it is clear that a paradigm shift in the industry of electricity is coming and that Power Ledger is its precursor.
We truly believe that the Power Ledger platform is the cornerstone upon which a modern energy trading system will be built. As we have touched on previously, it has all the benefits of blockchain which includes trustlessness, transparency and decentralization. But let’s continue our look at this engine and see what else is inside.
Dual Token Ecosystem – Introducing Sparkz
Using cryptocurrency for everyday payments isn’t so common (yet) for many reasons, including large price fluctuations and transaction times (for some currencies), as well as the perception that crypto is complicated to use. Power Ledger’s team are aware that this could lead to problems within their own system, which is why they’ve created Sparkz.
Sparkz is a token representing the value of energy traded in the ecosystem, pegged to the lowest denomination in each jurisdiction – for example, in Australia 1 Sparkz would be equal to 1 Australian cent. Sparkz can be directly bought with fiat, allowing the average person to participate in the Power Ledger ecosystem without any understanding of cryptocurrency or blockchain.
In a way, Sparkz is actually quite similar to Tether (USDT) – but with more reputable backing.
The fact that your average Joe can purchase Sparkz tokens with fiat should not be underestimated. After all, Power Ledger is for everyone: not just those that are into crypto. A tight integration with fiat works to grow the Power Ledger customer base and ecosystem as a whole.
POWR is the fuel in the system
As we have mentioned earlier, the Power Ledger project has a lot of different use cases; like sharing and trading ownership of renewable energy assets and interfacing with the Charging Protocols of electric vehicles. Thanks to such a wide spectrum of applications it is possible to acquire and analyze big data to get an even better understanding of customers’ behavioral patterns. Entities and businesses running such applications are referred to as Application Hosts.
The beauty of creating an ecosystem that encourages investor participation is that it organically encourages demand for POWR. It does this in a few ways:
The first way is pretty basic: let’s say a consumer wants to buy electricity using Sparkz. To do this, he purchases Sparkz with fiat currency from an Application Hosts’ Sparkz Pool. He can then trade his Sparkz for a certain quantity of energy with a prosumer (another user that is making money by selling energy, just like an Uber driver). The prosumer can then trade the Sparkz he just received for cash from the Sparkz Pool.
The first step to all of this is of course the Application Host getting enough Sparkz into the pool to begin with. It does that by surrendering POWR tokens for Sparkz. And in order to surrender POWR tokens, you need to purchase POWR tokens in the first place, organically increasing the demand for POWR (as seen in the chart below):
The flow of tokens in the trading environment – by Power Ledger
So whilst most cryptocurrencies are being valued purely on factors like news, a lot of Power Ledger’s value will be derived from how many people are involved in their ecosystem. Furthermore, the ecosystem itself will bring a lot of users on board together with asset germination event investors.
As you’ve noticed on that chart, there are also some small fees to keep the whole thing running. These fees are put to good use: Power Ledger uses them to purchase POWR tokens and distribute them among the platform users as a reward. The formula used to calculate these rewards is weighted towards renewable energy producers so that’s a great incentive to switch to renewables. As more fees are being collected, more POWR is being purchased and so the demand for POWR increases.
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