WePower – An emerging force of DLT powered by a green B2B electricity supply.
With the recent publication of the new WePower whitepaper, we have got an insight into the new direction WePower are heading in. WePower has been working on making PPA’s (Power Purchasing Agreements) that have been growing exponentially in the last few years, available to a much broader range of companies – almost any company in a WePower service area can now access a PPA to get a better deal on clean and renewable energy.
Corporate PPA’s are technically and commercially complex, resulting in long lead times and high transaction costs. Consequently, only large corporations have been able to benefit from this procurement approach.
This new accessibility to the PPA’s is provided by WePower’s creation of a standardized PPA, making it much less expensive and time-consuming for a business to enter into a PPA agreement. Other than the key auction variables of product, volume, price, and term, WePower’s PPA is unchangeable and rapidly becoming something that industry professionals are recognizing as an industry standard.
This focus on PPA’s is a newish direction for WePower, who started out more focused on consumer power sales, as noted by their much-publicized study of data in the Estonian electricity market.
All of this does not mean WePower is abandoning consumers all together – there is plenty of scope in the smart contracts WePower is using, allowing consumers to benefit as well. However, WePower’s current focus is on the PPA’s. The reason for this focus according to WePower is: “WePower have chosen business-to-business (B2B) market entry strategy, not peer-to-peer (P2P), because solving challenges of B2B renewable energy procurement brings the most value to a larger energy market.”
WePower’s model also allows energy project owners to conduct energy auctions – to sell some or all of the power they produce. This direct sales method means a whole lot more efficiency for the market, and therefore much better pricing for the end customers.
In addition to all this, WePower offers the WePower token (WPR), which is an ERC20 token (Ethereum) designed to allow people to benefit directly from the renewable energy PPA auctions. WPR token holders can register their tokens to a PPA, then 0.9% of the PPA auction value will be shared among the token holders and the value paid out in WPR tokens. They also allow holders to purchase energy at a priority auction – they are able to purchase the energy at a set price up to the value of WPR tokens they hold.
This versatile token seems to be an excellent opportunity for investors and energy companies alike, with excellent rewards for holding them.
A Southern Direction
After much deliberation, including investigations into Estonian and Spanish markets, WePower has chosen to begin their major investment and market entry in the Australian market – concluding it was best suited for their purposes.
WePower said: “Australia has perfect natural conditions for renewable energy production: solar and wind resources are amongst the best in the world, public sentiment towards renewable energy is fantastic and the federal and state governments are actively supporting the rollout of renewable technologies.”
In comparison with the Spanish market, WePower asserted that the corporate decision making was quicker, the economy growing faster and the corporate green energy procurement in the Australian market is approximately 3 years ahead. WePower, however, will continue to monitor the Spanish market and remains committed to entering once the market is ready.
The Energy Bit sees WePower as one of the best new DLT (Distributed Ledger Technology) energy companies, with a rather unique offering that encourages growth. It holds potentially large rewards for investors and it is definitely a project that we will keep a very close eye on. For further information about WePower’s plans, please give the whitepaper a thorough read.