Energy Cloud: Trading energy as a commodity
Energy Cloud Solution:
Our Energy Cloud Solution is inspired by the fusion of the global energy market and technological advancements worldwide. As the world's energy market evolves into a globally interconnected network, the emphasis shifts from the price of energy to its intrinsic value. This shift marks a significant change in the dynamics of the world, transforming the price of energy into a more abstract concept and positioning the energy unit as a potential currency of the future. In this context, the value of an energy unit is not subject to arbitrary changes but is instead determined by the inherent value of the energy itself.
Our solution offers a comprehensive system that enables energy trading based on its value rather than its price. This approach integrates an energy exchange with an energy banking solution. The underlying technology connects with cryptocurrency and provides access to liquidity markets through arbitrage trading, ensuring energy parity within the exchange.
This innovative solution paves the way for a new dominant energy token. This token will be integral to energy exchanges and trading platforms, fostering a flourishing liquidity market independent of any governing body.
Below is an illustration that outlines the structure of our Energy Cloud Solution.
The illustration depicts the overall structure of our solution.
Energy Assets represent the energy generation segment where value is created. The value of energy and its derivatives (like power) is encapsulated in a token based on their output. This token is generated within a separate energy network, linking the Liquidity Pool and the Energy Pool.
Tokens are issued based on the energy output of the asset to quantify the output of the energy system. The energy token can be associated with multiple tokens. These tokens are paired with an open network token within the liquidity pool.
The Liquidity Pool is an exchange platform where liquidity is raised from the tokens generated by the energy assets. Within this exchange, a parity token is used to facilitate transactions between the energy network and the exchange platforms. This parity token is dual-natured, with one part existing within the energy network and the other within an open network, such as ERC20, BSC, and others.
We leverage arbitrage trading from the liquidity pool and other exchange platforms, capitalizing on the availability of liquidity from different trading platforms through flash loans and capital markets. This trading strategy involves comparing the prices of the energy token across different platforms to identify and exploit price discrepancies. This approach ensures the continuous availability of liquidity within the Liquidity Pool.
Our system encompasses various crypto trading platforms, with 308 identified in the market. Our approach extends beyond just crypto exchange platforms; we are capable of integrating with mainstream trading platforms by introducing the energy parity token. This token is designed for future trading. We establish a link between the liquidity pool and these trading platforms, enhancing our market reach and flexibility.
Capital allocation is determined by the direct orders from energy consumers. This process ensures the immediate provision of liquidity required for our assets. The physical deployment of energy production meets the capital needs of diverse clients who require access to the Energy Pool.
As we deliver energy and related products to our clients, we grant them access to our energy exchange platform, known as the Energy Pool. Within this pool, buyers can access the spot market, which functions as a controller to ensure the availability and accessibility of energy. A comparable external example is EEX in Germany. However, our unique feature lies in the tokenization of fiat currency received from various clients, offering them an innovative method of payment. In this platform, we plan to introduce a new energy token that correlates with the value of energy. Additionally, we facilitate energy parity and the transfer of energy across different geographical locations. This is made possible through an exchange system that operates based on the value of the energy being traded.
For our diverse clients accessing the Energy Pool, we allocate the specified quantity and destination of energy to be delivered. This energy is then physically allocated to the client. However, the energy initially allocated to a specific client can be sold to another based on future contracts. Energy allocation also ensures access to energy through our energy porting solution. For instance, if a power station in Argentina supplies energy to a client in Spain, the power would be allocated from a porting station in Spain, corresponding with the supplier in Argentina.
Energy Clients are the end-users of the energy produced by the Energy Assets. These clients receive the physical energy while making payments through the exchange platform of the Energy Pool. They pay the basic energy price, as opposed to the projected energy value.
We integrate the Energy Pool and the Liquidity Pool under the concept of Energy Banking. The Energy Bank's assets include energy-producing assets and energy commodities, which back an energy-valued token/currency. This energy bank currency, backed by tangible assets, holds a physical value and can be exchanged for other products and services.
In the trading of energy commodities, buying power enables dual-channel trading. As the energy token is traded on future exchange platforms, it also holds a trade-in value corresponding to the substantiation of the physical energy production assets. Within the context of the Energy Pool, the energy assets will balance the difference between the value of the energy-producing asset and the energy token on the exchange platform, functioning as a feedback loop. If the token increases in value, liquidity will be available to invest in more energy-producing assets, ensuring sustainable support.
The Extent of This Solution:
The aim of this solution is to establish a new dominant trading currency controlled by the energy supplier. This token would be part of a broader initiative for global interconnectivity, free from excessive political influence, and could become a global standard for trading and payments. Payments are made based on controlled energy rather than its value, surpassing any sanctioned entities and ensuring access to liquidity and energy in the market. The physicality of this solution enables interconnectivity among peers, businesses, and governments.
The International Coordination Center (ICC) in Kuwait has been instrumental in developing the structure and the project, known as Energy Exchange, which caters to the specific needs of some clients. As we move forward, we are also considering obtaining a Digital Banking license in Kuwait. This solution is a part of the overall Energy Framework Structure developed by the ICC.