Monetization Energy Data with Blockchain Empowering The Masses

Monetization Energy Data with Blockchain Empowering The Masses To Mitigate Climate Change

The Reality Investments into Energy Efficiency and Renewable Energy is not as HIGH as it should be 2

The Idea Creation of an energy generation record keeping ledger and CO 2 emission offset ledger for energy projects 3

The Idea 1. 2 Creation of an energy record keeping ledger and CO 2 emission ledger for energy projects 0. 8 0. 6 0. 4 0. 2 Current Energy Cost 1 New Reduced cost savings programme 0 Time 4

Current EPC Financing Model Building owner Contract ESCO Lo an Sa Pa vin ym gs en t Execution Financial institution 5

Today’s Situation Building owner Government CO 2 saving ESCO CO 2 credits 6

The Challenges Energy usages • Difficulty to track • Inaccurate data on energy savings • Manual data extraction Energy baselines • Easily tampered • Lack of technical competent Shared energy saving scheme • Disputable savings allocation • Survivability of the contract 7

BESC Introduction • BESC platform is a record keeping for the energy usage and CO 2 emission for any equipment that manage by an energy management system. • The record ledgers are store in a permissioned blockchain as a service run on a public cloud platform. 8

Blockchain Concept • Blockchain is a group/block of transactions that store as distributed ledgers in a network of computer nodes with a consensus protocol (by automated rewarding) and encryption technologies for data integrity and security. 9

The Blockchain Patent-pending Solution Filed for Patent in Malaysia with title: UI 2017001389 “A Blockchainbased Method For Monitoring And Assessing An Energy Savings Scheme” Energy usage record creation ES coins and EPCC coins allocation with Smart Contract Records verified based on consensus (Po. I) Public Ledger Energy savings (ES coins) & EPC Carbon (EPCC Coins) generated Record block added to chain with encrypted key Records block replicated to consortium nodes 10

BESC Objectives • Blockchain-based Energy Savings Consortium (BESC) – To build a transparent, trustworthy and auditable energy savings database – Open to any party implementing energy efficiency or renewable energy projects. – Aligned to the objectives of Malaysia’s National Energy Efficiency Action Plan (NEEAP 2016 -2025) – Attempt to monetize CO 2 credits – ISEAL compliant and UNFCCC CDM compliant 11

BESC Value Proposition Building owner As energy savings & CO 2 record keeping ledger with blockchain technology Contract Execution ESCO Sav Pay ings me nt s g in nt v Sa me y a P In ve st /L oa n Financial institution ECF/P 2 P Operator + M&V Consultant Platform to raise funds to undertake EPC through Equity Crowdfunding (ECF) or Peerto-Peer (P 2 P) Lending 12

Energy Efficiency Scenario 1 k. Wh X Local Electricity Tariff = 1 ton CO 2 = ES COIN CO 2 COIN Fiat Currency Fiat exchange by EPCblockchain. com Carbon Market Fiat exchange by cryptocurrency exchanger

Renewable Energy Scenario Carbon Market 1 k. Wh generated = CO 2 COIN OR Fiat exchange by cryptocurrency exchanger

Additional Tokenization Benefit CO 2 COIN Sustainability Reporting 15

Use Case – Winner of the TNB 3 rd i. CON Hackathon 2018 TNB Energy Savings Reward Programme Employee e. Wallet given coins equivalent to energy savings/OPEX saved Coins can be used to redeem gift cards which to be purchased by TNB Powered by: 16

Use Case – Tokenization 1 k. Wh = ES COIN Purchased by TNB from OPEX savings 17

BESC Service Offering To ESCO • M&V services by CMVP at cost to ensure lodgment of data on blockchain • Energy management system integration service for data recording on the blockchain. • Assistance to facilitate and develop marketing material for crowdfunding 18

Crowdfunding in Malaysia • The total amount raised through ECF in Malaysia jumped sharply to RM 23, 393, 973. • Based on loan rejections by banks, BNM estimated the SME financing gap at RM 25. 1 billion for 2015. Of this, it felt RM 21. 8 billion could be met by alternative financing, including market-based crowdfunding. 19

Unique Proposition = Energy Performance Transaction Settlement + Project Crowdfunding + CO 2 Monetization

BESC Benefits • Possible monetization of CO 2 credits • Fund raising of Solar PV/Energy Efficiency project through blockchain based crowdfunding • Lower IT infrastructure capital expenditure • Lodgement of data to Blockchain • Automated measurement and verification • Survivability of Energy Data (Tool to comply to ISO 22301 Business Continuity Management ) 21

Blockchain Energy Savings Consortium (BESC) Facility Owners Finance Institutions EMS providers Logon www. besc. online to register as consortium member. Facility service providers ESCOs Energy providers M&V Consultant 22

Thank You Tan Lim Soon Fu tanlsf@epcblockchain. com +6018 966 8643 www. EPCBlockchain. com • Accelerated and Invested by • EPC Blockchain Sdn Bhd was founded by experienced professionals in the energy industry who have implemented a range of energy saving and renewable energy projects in Malaysia. • EPC Blockchain Sdn Bhd shall develop and manage the Blockchain Energy Savings Consortium (www. besc. online) where BESC is intended to be a ledger for the energy generation, energy use, energy reduction and avoided CO 2 emission for any electrical equipment that is managed by an intelligent energy management system in industries, buildings or homes.