UrbanChain’s Dr. Mo Hajhashem makes a strong case for the necessity of the paradigm shift in renewables asset management
The landscape of power purchase agreements is changing as the world continues to shift to a clean energy mix.
Our ‘Peer-to-Peer’ system is 95% accurate and we have already managed to bring renewables to the mainstream market – and we have made it viable without government subsidies.
We aggregate both generations and consumptions, do our profiling to find generation and consumption patterns and then match the consumption with the shaped generation and when the matching happens we make a contract between combination of generator and what might be many consumers. In fact as a generator, you might sell energy to combination of corporate consumers at the same time or as a consumer, you get your energy from combination of five generators to achieve you 100% NetZero.
For generators this means higher return and higher security at the same time! Higher return as the risk of renewable intermittency is managed by us and the matching accuracy of 95% would minimise the risk of imbalance. In addition you are selling directly to corporates and there is no agency cost involved! It is more secure, as the collective credits of the corporates would secure your PPAs rather than single credit of off-takers! Should any of these consumers go bust or something should happen which affects their contract, we can easily replace them with another one and your contract remains in place.
We’re creating efficiencies in this system when we directly connect generators and consumers together. You don’t need to go through intermediaries and our system removes many costs including searching costs, unnecessary labour costs and imbalance costs. Everybody is happy, specifically renewable asset owners and infrastructure investors. They really like the idea and grasp that they can have higher returns with higher security.
This is the future of PPAs.