Electrify.Asia Be the Power Review And ELEC Token Analysis

ELECTRIFY plans to develop a decentralised energy marketplace that runs on the blockchain. As an improvement from the existing marketplace business in Singapore, the new MARKETPLACE 2.0 will allow anyone to source for energy from commercial energy suppliers or to buy directly from a private producer via ELECTRIFY’s peer-to-peer (P2P) trading platform, SYNERGY.

About Electrify.Asia

60% of the world’s population lives in Asia and almost half of this population live in cities; and they’re all connected to central power grids. Japan liberalised its power grid in 2016, China has done so in parts and Singapore will be the first in Southeast-Asia. As more countries liberalise their electricity markets, consumers will get greater choice in choosing their electricity retailers and the way they want to consume energy.

In these liberalised environments consumers still consume power from centralised grids managed by corporatised grid operators. There’s also fast growing demand for alternative energy resources like like solar panels, biomass and wind.

However centralised electricity systems are lagging in innovations and alternatives. Solutions like renewable energy and peer-to-peer energy trading are still not prevalent. Without access to alternatives, consumers are not getting the choices they deserve.

ELECTRIFY will enable the decentralisation of power production and bring the power of choice to the consumer. We aim to build a better electricity network, and it starts with an intelligent energy ecosystem.

At the heart of this new ecosystem will be energy smart contracts secured on the blockchain, fueled by the ELEC token.

Product

According to Electrify’s Singaporean website found here (<-insert link: https://electrify.sg/), Electrify has supplied companies with over 500,000 kWh of electricity. Their platform doesn’t seem big at the moment, but it is a working product, tried and tested. Their new platform’s appeal is massive – over 60% of the world’s population lives in Asia, and the majority lives in cities. Changing the way consumers pay and get their energy could be groundbreaking. Their competition comes from the native energy industries, not from a cryptocurrency’s perspective. If it works, it could be quite innovative.

Whitepaper

At 15 pages, it has more infographics than actual text-based information. It is very reader friendly, and it’s very easy to understand what Electrify.Asia wishes to accomplish. When it comes to transparency however, it is not quite transparent. They do go in some detail about tokens and fund allocation, founders background and ICO sale but the tech isn’t mentioned one bit, and it is more presented as a sales pitch. Business plan is absent, although there is a clear direction seen in the WP.

Electrify Asia ICO Overview

60% of the world population lives in Asia and almost half of this population are connected to central power grids. As more countries liberalize their electricity markets, this infrastructure will provide the means for private energy retailers to bring innovation to the power sector.

Consumers will have a choice regarding both where their energy comes from and why type of power source generates it. By 2025, the World Energy Council predicts 15% of electricity capacity will be run on decentralized networks. In addition, there’s also an increasing demand for the benefits that alternative energy sources bring.

Innovative solutions to meet the demand for expanded access to renewables and more efficient energy trading are needed. The Electrify Asia ICO seeks to meet this growing consumer demand by building an intelligent energy ecosystem.

Electrify Asia ICO Value Proposition

The Electrify Asia ICO will enable the decentralization of power production, bringing consumers a wider variety of prices and energy sources. At the core of Electrify Asia’s intelligent ecosystem is the onchain version of their offchain energy retail marketplace.

Marketplace 2.0 will replace the offchain version, allowing consumers to access all of Electrify Asia’s services via web or mobile phones. The main advantages this model provides to consumers are twofold: firstly, electricity retailers purchase their energy wholesale, giving consumers access to cheaper prices. Secondly, expanded consumer choice and p2p energy trading provide greater access to renewable energy.

At the heart of this new ecosystem will be energy smart contracts secured on the blockchain, fueled by the ELEC token. The ELEC token will allow the producers and retailers to access Electrify Asia’s ecosystem. Retailers and producers will be required to stake their ELEC as a deposit to offer their energy in the marketplace. Transaction fees will also be paid by energy providers using the ELEC token for the usage of Electrify Asia’s smart contract platform.

On the consumer end, customers will be able to purchase energy from electricity retailers on Marketplace 2.0. To log energy on the blockchain, the team have developed the PowerPod, an IoT device that enables energy trades. Energy producers will be required to use the PowerPod to log energy output and to deposit a minimum amount of ELEC rated generation capability as permission to write energy data onto the blockchain.

Roadmap

Their roadmap, as described in their short WP, is very ambitious and optimistic. They’re planning to sell their ELEC token through an ICO (and a presale), launch their marketplace 2.0 and designated eWallet, launch synergy & an IoT device called Powerpod as well as a planned expansion to Japan. How feasible this plan is will come down to several factors, including Electrify.Asia’s ICO success and OmiseGo’s network’s success as well.

Electrify Asia ICO Team

Julian Tan is the CEO and Co-founder of Electrify Asia. Julian was with Sunseap Energy for 5 years prior to founding Electrify Asia. His previous experience also includes a stint as Research Engineer at the Solar Energy Research Institute of Singapore.

Martin Lim is COO of Electrify Asia. Prior to joining the team, Martin served as Director of an arms company called Armetall Sistema. Martin was also once with Sunseap Energy as a Business Development Consultant. He has spent over 15 years as Creative Director at a number of companies. 

Chief Technologist John Lian  is responsible for designing the Electrify platform architecture from backend server specifications to database design and network connectivity. To this end, John has around 8 years of experience handling the tech side of startups that he co-founded.

Electrify Asia have Jun Hasegawa, founder of OmiseGo, on board as an advisor of the project. Jun will be assisting with direction on blockchain scalability and payment solutions for Electrify Asia.

Electrify Asia ICO Strengths and Opportunities

The team have already established a working electricity marketplace in Singapore for enterprise clients with 12-16 retailers on it. The marketplace can be viewed here. The marketplace provides a functioning pilot for what will make up the architecture of the company’s foray into foreign markets as well. Having first-mover status in Singapore and no competition, Electrify Asia have a clear path to growth ahead in their home country if they manage to implement the onchain technology and demonstrate its advantages to the populace.

The main selling point for consumers is that typical savings on the Electrify platform are between 25% to 30% off the electricity tariff charged by the Singapore government utilities provider. For households, Electrify Asia estimates a 20% savings rate. Reduced rates are available because retailers can now buy power at discounted wholesale prices and then sell it on to consumers via the Electrify marketplace. In other words, the cost structure between the Singaporean government utilities provider and the power producers is higher than those with private retailers on the Electrify marketplace.

This results in a price difference between the two favoring Electrify. The potential for both households and large enterprises to save on their electricity bills is a huge incentive to switch over to the platform. Moreover, electricity is still supplied from the main grid and the quality and stability remains the same as well.

Electrify Asia ICO Weaknesses and Threats

The Electrify Asia ICO is using energy market liberalization as a selling point for their project. However, there is little indication of an overall trend toward market deregulation, especially in the more command oriented economies of Asia. Regulatory hurdles therefore represent a particularly difficult issue for the Electrify Asia ICO should an effort be made to penetrate the Southeast Asian market.

Targeting a country like the Philippines, where the government’s role in utility provision is strong, will be almost impossible without a government-linked advisor or partnership similar to that established byPower Ledger in Thailand. In the developing world, many governments who provide electricity through state-owned services or in conjunction with crony companies will be reluctant to allow for competition in a sector that generates much needed revenue. Developing connections with government officials in their target region is therefore key to expansion.

In more open markets like Australia, Electrify Asia will face competition from other blockchain-based energy marketplaces that have already made inroads. In Australia, Power Ledger has a pilot project lined up and WePower have also made their first steps into the market. For their expansion plans, Electrify Asia’s best bet is probably the Japanese market. The country’s receptive attitude toward blockchain and liberal regulatory environment are both welcoming factors. However, at the time of writing the team have yet to establish any partnerships with Japanese entities.

The Verdict on Electrify Asia ICO

With the particularly high utility case for trading energy on the blockchain, the competition in this space is only increasing. The issue with electricity is of course that utilities tend to be a sector with high levels of regulation, the degree to which varies from country to country.

With Electrify Asia’s foothold in Singapore, building their base at home and finding the next viable market with a suitable regulatory environment will be key to success.

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