What is SunContract SNC and how does the platform work?
SunContract is a technology-based trading platform for energy blockchain. Allowing users to trade directly in energy (buy and sell) without the need for third parties. Business SunContract focuses only on renewable energy sources, such as solar and wind energy, as well as the use of geothermal energy and biomass.
What does this mean for the consumer?
By establishing a free market, the user will achieve significant cost savings. In Slovenia SunContract SNC cooperates with SONCE New Energy Ltd. from 2017, which guarantees a standard market price after the conclusion of the contract. This prevents price fluctuations and agreements that harm consumers.
Using blockchain technology and so-called Intelligent contracts, the SNC platform avoids unnecessary intermediaries, thus providing cheaper electricity. The platform is in use from April 2018. Users can save from 20 to 35 percent compared to conventional energy sources and existing energy suppliers. Thanks to various partnerships, SunContract can use existing energy networks or infrastructure, enabling anyone (currently only in Slovenia) to independently buy or sell electricity. Soon the platform will be available in Italy. Other EU and non-EU countries are under development.
How does the SunContract SNC platform work for people unrelated to blockchain?
The user can conveniently log in at home on the SunContract.org platform. There, he concludes a contract with SONCE Ltd and the SunContract "Balance Group". Meanwhile, SONCE Ltd provides efficient service of terminating the contract with the previous supplier and since then it has been operating as a new partner in the field of electricity. The contract sets the maximum price, around which you can now buy energy at any time on SunContract platform from SONCE Ltd.
The user top-ups his account 2000 SNC token directly on the platform via wire transfer SEPAand then can immediately buy cheaper electricity. The fixed, fixed price of SONCE Ltd guarantees a stable price, and thus the maximum price.
The energy market at the moment
Global investments in renewable energy have risen sharply over the past year and far exceed investment in fossil fuels, according to the report UNO.
As technology prices in the renewable energy sector are constantly declining, so-called green energy has become an increasingly attractive prospect. In 2017, China was by far the world's largest investor in renewable energy. Almost half of the infrastructure running in 2017 is located in the Republic of China. This is mainly due to the huge promotion of solar energy. China has invested almost one fifth more than in the previous year. Other countries, including Australia, Sweden and Mexico, have more than doubled investments in this sector. Due to the constant increase in the population and the related increase in energy consumption, the need to switch to renewable energy is becoming increasingly important.
Over the past decade, many strategic investments have increased the share of renewable energy in global energy consumption from 5% to 12%. Already last year, these investments helped to avoid global emissions of around 1,8 gigaton carbon dioxide. This roughly corresponds to the CO2 emissions of the entire US traffic system. For example, if you look at the research from the Rocky Mountain Institute in Colorado and their predictions in the figure below, you will notice that in 2015. Around 15% of total energy produced in the USA came from wind and solar energy. It is expected that by 2050 it will be around 71%. Adding more renewable energy sources, such as hydropower, geothermal energy and biomass, can increase it to 80%.
Renewable energy in Europe
European Union directive on renewable energy defines the general policy for the production of energy from renewable sources in the EU. It demands that Member States cover at least 20% of total energy needs with renewable energy sources for 2020. All EU countries must also ensure that at least 10% of their fuels come from renewable sources to 2020. On 30 November 2016 The Commission has published a proposal for a revised directive on renewable energy sources to make the EU a global leader in renewable energy. This is to ensure that to 2030. At least 27% of energy will come from renewable energy. In June 2018. The target was increased to 32%. This Directive sets national renewable energy targets, taking into account the starting point and full potential of this market. The revised targets range from a low of above 10% in Malta to a maximum of 49% in Sweden.
Climate changes this is one of the biggest challenges we have ever faced. One of the main reasons for this is dependence on fossil fuels. Combustion of crude oil, coal and other fossil fuels for energy production is ineffective and causes a huge amount of CO2 emissions and other harmful gases. Too high concentration of these gases in the atmosphere causes the greenhouse effect.
The use of fossil fuels and the resulting emissions lead to the second main problem in the energy industry: the centralization of energy sources and suppliers. Due to the monopolistic position of many large corporations, energy prices are raised by a gradual "shortage". On an international scale, only energy accounts for only a third of the actual electricity price. Other costs consist of various fees.
SunContract a solution to the problem?
Blockchain technology allows independent electricity producers and consumers to connect to the network through "smart contrach" via the pool SunContract. The goal of an intelligent contract is to provide security that is greater than traditional contract law.
By combining the energy sector with blockchains, many new opportunities arise in terms of optimization, transparency and cost-effective use, and ultimately this is reflected in the price the user pays for energy.
In April 2018 SunContract platform has been launched in Slovenia and since then every resident can log on to the platform and buy or sell electricity among themselves.
In comparison with other energy suppliers, the user using the platform pays 20 to 35% less for electric energy.
Experts around the world agree: currently it is no longer necessary to burn fossil fuels to such an extent; We do not have to burden our environment unnecessarily. Currently, there are much more environmentally friendly methods of obtaining energy.
Solar and wind energy are widely known, but the real potential of these technologies remains largely untapped.
In order to be able to meet the users' energy needs, there are contracts between SunContract and domestic energy suppliers that can supply electricity and thus reduce the price of electricity to a maximum. In the case of payments on the platform, the SunContract digital token (SNC) is used, which includes an automated process / contract (Smart Contract), and therefore the user waives the need for a broker. The platform enables accurate tracking of energy consumption by means of clear charts.
The development of the SunContract SNC's future
Gregor Novak i Mojca Bajec they started the project in 2016 year with a small team. As the development progressed, the team grew from ten to over 25 people, and by the end of the 2018, almost 50 people are expected to count. In addition, SunContract is supported by over ten Energy and Blockchain experts.
The team understands that connectivity is very important, that's why they constantly talk to potential partners and visit industry events around the world. (Peak Solar Tech in Portugal and "Digital Solar & Storage" in Munich are awaited with particular excitement from the community). At the end of July, NEM Blockchain and a rocket technology company talked about cooperation. Unfortunately, for the time being, due to NDA (Confidentiality Agreement) Details can not be disclosed
Many new business partnerships are planned in January 2019.
At the end of June, SunContract was presented to the European Commission, the UN and many other countries around the world. In talks with the vice-president of the European Commission Maros Šefčovič it became clear that EU legislation provides excellent conditions for adapting the SunContract platform.
At the lecture before the UN commission, opinions were always positive. Cooperation on the African continent has been officially confirmed. SunContract has also received applications from Latin America, Asia and other European countries. After very interesting and pioneering meetings in Italy, SunContract very positively assesses Italy's location as the next goal on the European market.
Portugal, Belgium, Poland and Ukraine are just a few more people interested in the EU.
Eurasian Blockchain Hub, based in Ljubljana, was opened at the end of July.
China, Malaysia and Japan have expressed interest and want to test the SunContract service and review the legal framework for implementation.
Another area of high priority in the SunContract is the electric vehicles sector. The relatively young branch of e-mobility also allows and requires adequate flexibility. In particular, partnership with Microsoft should in some areas give the opportunity to shorten development phases from several months to several days, thus actively supporting SunContract in its implementation.
SunContract is working with more than 30 partners throughout Europe to solve the problem of undersized communication infrastructure. Unfortunately, the exact schedule is not currently known, but it seems that it is about transforming private homes into so-called "transformer stations" so that battery charging is independent of each other.
Charging and payment takes place automatically in real time and does not require direct contact between the producer and the user. In some cases it is necessary to adapt the legal framework conditions, but even here a lot of interest has been expressed by various organizations and members of the government.
Since the introduction of SEPA payment methods on the platform, users without deep technical knowledge of blockchain can use the platform and its advantages. The user buys SNC tokens directly on the platform in euros and is no longer forced to use digital trading platforms (stock exchanges) to get them.
The implementation of SEPA led to the signing of many new contracts in a short time.
In an interview given at the beginning of July, the SNC team said that so far the number of platform users equals the number of inhabitants of one village in Slovenia. At the end of July it was already the size of two villages. More exact figures are not yet known, but will be published before the end of the year. The goal is to get a number of users equal to the average number of residents in the Slovenian city by the end of the year 2018.
In addition, SunContract is active in the field of energy storage.
After a long waiting period, the first large energy storage in the region or even the largest in Slovenia, will probably be launched in January 2019. Its power will be half a megawatt, while the capacity will be one megawatt hour. The energy store will be loaded by users of the platform, as well as used by them. The goal is to ensure a lower price through stability and supply. Unfortunately, the name of the energy storage device vendor may not be published due to the NDA, but it should be a big surprise.
SunContract SNC token value?
SunContract earns an average per user on the 0,5 € - 0,8 € per month platform.
The goal of the project is to have users over 100 000 by the end of 2020 year. What's more, hopes are high that several million users will appear in a few years.
Market Capitalization (as of 6 August 2018) 6 647 782 USD Price for the 0,055502 token There is a total of 129 707 503 SNC chips, 119 777 804 of these chips is already in circulation.
As mentioned above, the real goal at the end of 2018 is to have a user base on the platform of one average city in Slovenia. Because this number ranges from 11 000 to 224 000 residents, we estimate that in the following example, the approximate number of 40 000 users.
We remind you that with the current token value, the user must store 2000 tokens (100-150 €) on the platform to use it.
As a result, it is possible to calculate: 40 000 (users) x 2000 (tokens) = 80 000 000 tokens - This would mean that the 80 000 000 tokens are no longer needed and therefore can no longer be sold on stock exchanges (Huobi, etc.).
This corresponds to around 67% of all SNC tokens that do not "circulate".
According to the "law of supply and demand", the combination of growing demand and decreasing supply will increase the value of the SNC token.
With the increase in the value of the SNC token you will also have to keep fewer them on the platform, which will ensure that there will always be a certain amount available and that the system will continue to grow.
Nowadays, many new homes are equipped with the ability to independently produce green energy. SunContract ensures effective use of this extension.
Another advantage of tokens is that you get discounts on the purchase of various solar panels, heating pumps, only for users who use SNC tokens as a means of payment.
Unfortunately, this is only possible in Slovenia at the time this text is written, however, because the platform is growing all over the world, it is expected that this service will soon be available in other countries as well.
I would like to say that I have devoted a lot of attention to SunContract since ICO, especially in terms of product implementation. From the beginning of the project, the team was able to meet all deadlines and realize all promises. As mentioned, often some new information may not be published yet due to the NDA (non-disclosure agreement). But the team and the community are impatiently awaiting the 2019 year, because many annual contracts with energy suppliers expire at the beginning of the year, and therefore the transition to SNC may take place.
The team is actively represented on all known social platforms and strives to maintain culture and communicate with the community at the highest possible level.
Prepared by: Łukasz Czarnota