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 an agreement with SONCE Ltd and the "Balancing Group" SunContract. Meanwhile, SONCE Ltd provides an efficient service for terminating the contract with the previous supplier and has been operating as a new electricity partner ever since. The contract sets a maximum price around which you can now buy energy at any time on SONCE Ltd.'s SunContract platform.
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 major problem in the energy industry: the centralization of energy sources and suppliers. Due to the monopoly position of many large corporations, energy prices are rising in line with a gradual "scarcity". Internationally, energy alone accounts for only one third of the actual price of electricity. The remaining costs consist of various fees.
SunContract a solution to the problem?
Blockchain technology enables Independent Electricity Producers and Consumers to network through "smart contrach (smart contract)" through a pool SunContract. The purpose of a smart 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.
Compared to other energy suppliers, the user of the platform pays 20 to 35% less for electricity.
Experts around the world agree: now it is no longer necessary to burn fossil fuels to this extent; We do not need to burden our environment unnecessarily. Today, there are much more environmentally friendly methods of generating 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 energy needs of users, there are contracts between SunContract and national energy suppliers who can supply the electricity and thus reduce the electricity price as much as possible. In the case of payments on the platform, the SunContract digital token (SNC) is used, which includes an automated process / contract (Smart Contract), so the user resigns from the need for an intermediary. The platform allows you to accurately track energy consumption using clear charts.
The development of the SunContract SNC's future
Gregor Novak i Mojca Bajec started the project in 2016 with a small team. As the team grows, it has grown from ten to over 25 people, and by the end of 2018, there are almost 50 people. Besides, SunContract is backed by more than ten Energy and Blockchain experts.
The team understands that connectivity is very important, so 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 expected with special excitement from the community). At the end of July, the NEM Blockchain team and the rocket technology company were talking about working together. Unfortunately, for the time being, due to the NDA (Confidentiality Agreement), the details cannot be disclosed
Many new business partnerships are planned in January 2019.
At the end of June, SunContract was introduced to the European Commission, the United Nations 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 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 position as another target 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 high priority area at SunContract is the electric vehicle sector. The relatively young branch of e-mobility also enables and requires adequate flexibility. In particular, the partnership with Microsoft should provide the possibility of shortening the development phases from a few months to several days in some areas, and thus actively support SunContract in its implementation.
SunContract works with over 30 partners across Europe to solve the problem of undersized communication infrastructure. Unfortunately, the exact schedule is not known at the moment, but it seems that the idea is to transform private homes into so-called "transformer stations" so that the batteries are charged independently 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 the SEPA payment method on the platform, users without deep technical knowledge of blockchain can benefit from the platform and its advantages. The user buys SNC tokens directly on the platform in euro and is no longer forced to use digital trading platforms (exchanges) to get them.
The implementation of SEPA led to the signing of many new contracts in a short time.
In an interview in early July, the SNC team said that so far the number of users of the platform is equal to the number of inhabitants of one village in Slovenia. At the end of July, it was the size of two villages. More precise figures are not known yet, but will be published before the end of the year. The aim is to have the number of users equal to the average population of the Slovenian city by the end of 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 most likely be operational in January 2019. Its capacity will be half a megawatt, while the capacity will be one megawatt hour. The energy storage will be loaded by and used by the platform users. The aim is to provide a lower price through stability and supply. Unfortunately, the name of the supplier of the energy storage device 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 per platform of € 0,5 - € 0,8 per month.
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 (users) x 000 (tokens) = 2000 tokens - This would mean that 80 tokens are already needed and therefore cannot be traded on exchanges (Huobi etc.) anymore.
This is equivalent to about 67% of all SNC tokens not "circulating".
Under the law of supply and demand, the combination of increasing 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