RED: How A Little Energy Company Can Change The Energy Distribution Market

The reach of Blockchain Technology it’s so wide that it can potentially restructure the current energy market. One of the few companies to take the lead in this field is the Restart Energy Company, an electricity and gas supplier operator of renewable energy that started out operations in the European Union last year. The company has a franchise base-model of business that reported company earnings close to $20 million just this year with a customer ground of 30,000 users.

Changing an outdated model

Restart Energy plans to revolutionize the energy market by taking the middleman out of the picture between the dealings of energy producers and final customers. The way they intend to do this requires a bit more of explaining. Let’s take a look at the process:

Solar energy producers usually generate more power than they need for their base customers, they usually get rid of the exceeding energy by selling it back to the grid at very low costs. Since traditional producers cannot benefit in a realistic way of these additional peaks, this energy is handled by intermediaries that increase the price of it by 50% justifying themselves behind administrative costs and management.

The new face of energy trade

Restart Energy aims to change the outdated model by making use of Blockchain Technology to open the market in a new way. By making use of smart contracts energy producers can deal directly with local energy providers without having the need of intermediaries. The system works by taking out bureaucracy and red tape that slows the need to provide efficient energy for the people who really needs it and is willing to pay for it. The final result could be lower transactions costs and fewer steps to get the final product, as well as an increased help to local energy providers that will report increased earnings and will allow them to remain in business.

The plan to achieve these direct contacts is by developing RED, a decentralized platform built on blockchain that will create a direct link between energy producers and direct customers. The projected estimates that such an initiative could have is an increase of at least 30% in earning for producers on their exceeding power and a 30% lower cost for final consumers. All trades are done using classic P2P protocols that are open for review to avoid the creation of monopolies.

Powering the new system

Restart Energy is backing the development of RED with their specialized token called ERC20 RED MegaWatt. The ICO has a specialized feature like no other digital currency in the market: it works as a virtual energy battery that can store access to 2 Mega Watts an hour of energy. The token is meant to power transactions in the platform using these energy funds to sell the power available for distribution. The digital currency can also be used to pay invoices issued between generators and receivers or to sell extra energy to other users by request.

There’s a complete rundown of the planned achievements of the RED platform and the actual extensions of the plans of the company in https://restartenergy.io/. The current schedule has the pre-ICO sell starting on January 15th of 2018. Restart Energy plans to issue 1200 billion RED tokens with a value of $0.01 per unit. Their endgame aims for an expansion on the use of green energies, so it’s not a bad initiative to get behind in the digital currencies market.

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