The Sharing Economy: Let’s talk about the ‘peer-to-peer’ in energy trading
The Verv energy trading platform (VTP) is the backbone of our peer-to-peer (p2p) energy trading protocol. The VTP has been designed to independently facilitate trading energy between peers using a combination of blockchain technology, IoT and artificial intelligence. Its purpose is to allow consumers who produce their own renewable energy locally (ie rooftop solar) to sell their excess energy directly to their neighbours in exchange for tokens.
The idea is to incentivise the uptake of renewable technologies and improve access to affordable, clean energy.
The aim is that consumers who purchase their energy via the VTP have the added benefit of getting their energy for cheaper than they would from the grid (and it’s green!!) and local producers (prosumers) earn more than they would selling their energy back to the grid.
So let’s bring this to life…
Imagine a street with 10 houses, where only a few houses have solar panels and electric battery storage.
At certain points of the day:
• Households with solar panels are generating more energy than they need and are selling the excess to the grid at the price of 5p/kWh (via a “feed-in” tariff)
• Other households who need energy are currently purchasing electricity from conventional energy suppliers at 14p/kWh
Currently there is no correlation between the households themselves, meaning there is a missed opportunity to resolve the imbalance of supply and demand which could be rectified by p2p energy trading. Bringing the p2p element into the equation just makes sense.
Furthermore, feed-in-tariff rates (the rates at which consumers can sell their surplus solar energy back to the grid) have been declining globally, which we believe further increases the importance of providing households with a p2p trading alternative. Recognising the imbalance and opportunity, this platform implements a system for trading this surplus solar energy which also has really positive benefits for the environment.
But p2p isn’t a new phenomenon. In recent years, the sharing economy has become the new normal, disrupting many incumbent industries and providing more choice on the market.
Where private assets were previously left underutilised, the sharing economy has enabled individuals and households to monetize existing assets, improving resource efficiency, increasing market competition, and providing better outcomes for consumers. AirBnB and Uber have developed global networks of p2p resource sharing, and many others (HiyaCar, JustPark, Lyft) are following quickly behind.
The success of the sharing economy is also due in part to the customer’s interest in provenance and understanding the complete supply chain of consumer items. From chocolate and coffee beans to the latest smartphone, consumers want to know their purchases have been sourced from ethical, sustainable and environmentally-friendly origins.
Globally, “Buy Local” has become a powerful slogan for small and growing businesses, as customers look to support communities and individuals, rather than corporations.
As the p2p sharing economy becomes more mainstream, its application to the energy sector has already begun in communities around the world. We believe the potential benefits of innovation are significant: households can procure their electricity from other households with solar power, for lower prices, more sustainable outcomes, and clear knowledge of where their money is going.
