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the Shared Energy Economy

White Paper

SEE Delivering

GLOBAL GRID +

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Table of Contents

Abstract Page 3

Project Overview Page 7

Micro Grids Page 13

Proof of Concept Page 19

Tokens Page 24

Value Proposition Page 29

Negawatt Trading Page 36

Legal Page 43

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ABSTRACT

So, what is that we are about, what makes us different and how do we expect to

change the world, these may be questions we think are the most important to us, but

I’m sure that your main question is what’s in it for me?

Well I hope to answer all those questions and many more in the following paper.

We as race have always looked to the sky in awe and wonder at the life-giving energy

of the sun, it has dictated the way we live our lives and provided the energy for our

civilization. Solar energy will provide us with the natural resources we need to

deliver a renewable, sustainable and prosperous future, as a tribute to the sun we at

Global Grid has created the BitSun currency, as the foundation for this new economy.

The energy economy globally has been built on a centralized ideology, the belief in a

centralized production, retail, and distribution model for energy (as well as for other

areas of the economy) has come under great scrutiny and a number of alternate

models have been suggested.

In order to transition from a high cost, highly centralized energy economy to an

efficient, low cost decentralized model, we need to address production (day & night)

pricing (wholesale & retail pricing ) utility relevance/role, continuous and reliable

supply (storage facilities) distribution (the electricity grid/network, micro grids and

off grid communities) and finally excess production capacity used to deliver energy in

peak demand cycles (this should be delivered via demand response mechanisms low

cost “Negawatt trading” rather the idle capacity, high cost solutions)

The architecture for Global Grid is built on a decentralized database utilizing the

Ethereum block chain and smart contracts as the backbone for energy transactions

whose main goal is the democratisation of energy markets, supporting energy

communities, building energy capacity and hosting P2P live open energy trading

using reverse auctions. The sharing economy has defied conventional wisdom in a

number of industries both regulated and deregulated, SEE (the Shared Energy

Economy) is about to experience this disruptive technology as the number of home

and business based power generation and storage capacity increases and becomes

more widely distributed. Micro grids will lead the charge in distributing power in

peer-to-peer transactions, as these can be interconnected after the “meter” and

therefore not subject to the same legislative restrictions that apply to grid connected

consumers & producers. Direct Peer-to-Peer energy trading will under current legal,

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commercial and legislative frameworks be problematic, and face insurmountable

challenges both currently and in the future. A different approach utilizing a

decentralized hybrid Peer-to-Peer trading scheme can overcome some of the

inherent problems of a direct peer-to-peer platform which addresses the market,

legal and operational concerns.

Energy Security is fundamental to any shared energy economy, and this in turn

requires addressing the following variables, Generation, Storage, Redundancy,

Reliability, Distribution, Price and Confidence. C = G+S+Rd+Rl+D+P, Confidence is

determined by the variables Generation, Storage, Redundancy, Reliability,

Distribution and Price and is a function of time, this may be a positive or negative

function depending on Global Grid’s (SEE trading platform) ability to successfully

address all the variables. These variables will naturally have different weightings

depending on individual hierarchy of importance, and will in turn reflect the

preferences of different classes of consumers and producers. SEE trading as a

percentage of the total energy exchange market is therefore dependent on the level

of market confidence.

Global Grid addresses the legal and legislative concerns over electricity P2P trading

by utilizing retail & wholesale energy markets as an underwriting agent to support

and deliver stability in peer to peer energy trading for interdependent and

independent energy communities, individuals and businesses. Underpinning these

trades is access to or ability to supply consistent and reliable energy with the security

and of confidence delivered by decentralized ledgers. An important key to

encouraging participation in any community, currency or participation market

economy is a fair accounting system that consistently reflects each producer’s

contribution and participation in the platform. Global Grid is the first cryptocurrency

that attempts to accurately and transparently reward an unbounded number of

energy producers and consumers who make quantifiable contributions to the overall

capacity of national energy networks, through energy consumption, reduction

(Negawatt trading), generation and storage activities, as well as providing direct

investment opportunities for crypto currency assets into renewable energy projects.

The first stage of the Global Grid economy deployment involves the rollout of the

Proof of Concept, the architecture for the platform will be tested on a private block

chain with energy assets and trades occurring after the meter. To validate trade

executions and performance of network node devices API and interface,

communication on the consumption, distribution and storage of energy, within the

system will be rigorously tested in a real-world environment to ensure all smart

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contracts are delivered and remunerated as executed and all legal and safety

obligations are met.

Large scale renewable energy projects delivered by Global Grid will be financed by

traditional debt & equity funding sources using fiat currency, additional avenues will

also be available for crypto currency investors to participate in the in the projects

with returns delivered via fiat or crypto currency dividends. By delivering large scale

energy projects using in part Global Grid virtual currency, a greater demand for the

currency will exist thereby driving up the value of the underlying value of the asset,

the value of the large-scale energy projects is significantly enough and geographically

disbursed enough to have a significant impact over the Global Grid currency well into

the future.

Business/Supplier Partners within the economy will have preferential access to

consumer and producer capital and recurring expenditure spending because of

Global Grid Approved Installer Program, crypto currency rewards and payment

options, this Partnership Program will also result in increasing demand and value for

the Global Grid Currency.

Revenue for the Global Grid economy will be delivered via a fixed fee of 1.5%

imposed on all energy transactions, this will be used to finance development and

upkeep of the network, and affords Global Grid the ability to further incentivize

purchasers and producers, and reward holders of Global Grid currency tokens,

through a buyback and burn program.

Foundations for Peer to Peer Energy Trading

1) Big data on consumption and production interval data, participants key

indicators, competitors, climate, patterns and forecasting/predictive model

inputs.

2) AI live reprofiling of Prosumer & Consumer energy profile & accurate

predictive production & consumption modelling

3) Historical energy profiles for consumers & prosumers

4) Mandated & moving prosumer energy reserves reflective of executed energy

contracts and live energy profiles.

5) Load demand mechanisms sufficiently enforceable and of required capacity to

handle load spreading variations in consumer energy demand from live and

historical energy profiles.

6) Underwriter with retail trading licence to guarantee delivery of all executed

contracts at time of day required and at contracted price.

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①

② ③

④

⑤

⑥

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Project Overview

We have organized an expert team of programmers, electrical engineers, legal and financial experts to create an energy trading platform “Global Grid Plus” with smart energy purchase contracts, a two-token cryptocurrency one being an incentivized trading currency purchased on crypto exchanges “BitSun” and the second the stable payment token “Joule” purchased with fiat currency. Our goal is to create a platform to transition main load power to renewables and provide funding for incentive programs to encourage existing consumers & producers to our system as well as funding energy storage providers, closed and open micro grid developers, and provide funding for R&D into renewable innovations and efficiencies. This is done while still providing support to existing non-renewable energy producers that currently provide the lion’s share of base load power supply.

In reviewing the requirements for P2P energy trading it was determined that any

shared energy economy would generate large numbers of transactions between

prosumers and consumers, and between the meters (on 5-minute interval data) and

the block chain network nodes, it would require methods for low-cost

authentication, validation, and settlement, protection of consumer data, privacy and

consumer protections against producer overselling and failures in contract supply.

The goals of the project are to enable energy producers and prosumers to be rewarded sufficiently for their investment in renewable power generation and storage infrastructure by creating an open live Peer to Peer trading platform that allows electricity to flow from small scale producers during times of peak demand without the regulatory and cost imposts that make such transactions financially unviable.

The physical infrastructure that provides the foundation and proof of concept for this virtual trading platform has been created at Hills Foundation Jimbooma Australia (Fig.1). The Hills Micro Grid project involved the construction of a 300kW solar P.V. dual axis-tracking farm and a 250 kW 72-hour solar thermal storage facility, the construction of a grid connected smart micro grid network, bidirectional smart prepaid metering, home and business energy management solution and associated demand response load sharing mechanism.

Homes and businesses within the Hills Micro grid were connected to each other and could trade with each other and to the school, its dormitories, businesses, the Golf course and club as well as the solar farm and solar storage tanks. This micro grid was in turn connected to the main grid where excess electricity could be stored or traded

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using the Global Grid’s retail and wholesale trading licenses to achieve maximum return for excess energy by trading it at peak pricing periods.

The physical network data produced by the home/business smart meters is initially transferred to the ethereum blockchain via computers linked to the home/business smart meter. A suitable communication mechanism using RS232, helps fetch data from the existing meter ports of IS13779 meters and delivers data to the network nodes via our Meter Interface device

The data transfer & verification occurs in the Hills micro grid where a block chain is created on each consumer and producer’s computer, which then obtains a node address in order for homes with solar panels to be able to sell power to neighbours and back to the energy storage plant. Information from the homes smart meters is also transmitted to the homes computer where it is then distributed to the block chain. The block chain network manages and records the transactions automatously. The “nodes” in the computers are needed to validate and share the information to minimize the possibility of downtime or interference with the data. The more data that needs to be bundled into “blocks” and passed along, the more computing power that will be required.

The block chain will ensure data validity, smart meter data will be recorded in real time at the source through the devices API, this will mean that the data can no longer be modified, and energy trade uncertainties will be eliminated. The collected data is then

Global Grid smart contracts require enforceable contracts to be created between the

various players of the smart micro grid economy which are executed by two triggers

one a time trigger (billing cycle) and the second trigger from information that is

exterior to the block chain, meter readings, indicating both consumption and

production across the network. The currency of the economy is the stable token

“Joule” fixed at one basic unit of domestic currency ($1 AUD) these types of contracts

do require the user to trust an Oracle. Instead of a smart contract initiating the

retrieval of external data, the M.I. device creates a transaction from data received

from the home or business smart meter, which embeds that data in the chain. Every

node will have an identical copy of this data, so it can be safely used in a smart

contract computation.

The M.I. device is the link between the block chain and the real world (Fig. 3). Through the M.I. master node device, the smart contract can be fed information about an exterior event, such as time of day, energy consumption and production so

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as to execute the smart contracts according to the terms and conditions of those contracts.

The smart contracts can, not only trigger the release of funds, but they can also

trigger other complex actions, in the case of Global Grid it would also involve the

release of bonus Energy Currency tokens to reward the production, storage and

distribution of Energy, weighted in favour of renewable energy, and location of the

meter if main grid connection charges are to be levied. Additionally, smart contracts

with contractual demand response mechanisms such as a Negawatt asset trading and

Home Energy Management systems will allow for the reduction in peak electricity

demand price spikes and the need to maintain excessive electricity reserves in both

production and storage capacities.

Smart contracts will be used to link consumers, prosumers, energy retailers, Energy

Wholesalers, Producers, Energy Storage operators, Main Grid and micro grid

operators to ensure the continued viability of the various sectors of the energy

economy is supported both financially and structurally, to transition the replacement

of non-renewables with renewables in a structured manner that underscores the

importance of uninterrupted main load power.

Fig.1 Grid charges (vary by region/state)

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The total cost of the consumer’s energy contract will be calculated by adding the

agreed price of the executed contract for the time of day the electricity is consumed

plus the 1.5% transaction fee plus the cost of the regulated network Fig1 if

applicable. The cost of the network including transmission, distribution and

connection fees if applicable varies from region to region but can be expected (In

Australia) to contribute to 50 +% of the total electricity price. In the table in Fig. 2 this

can vary from AUD$0.05955 to AUS $ 0.16564 per kWh plus a daily charge. Electricity

delivered and consumed within a micro grid network such as the demonstration

plant at Hills Australia does not incur the network charges or the environmental costs

and consumers would therefore only pay the LORA price + 1.5% transaction fee.

Live Open Reverse Auction (LORA) & Smart Contracts

Fig.2 Hills Smart Micro Grid

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Fig.3 LORA

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Fig. 4 Decentralised M.I’s

Escrow Account

Token Payments &

Token Redemptions

Smart Contracts

M.I. Device

Purchase, Sell & Store Electricity

anywhere, anytime using LORA Live electricity usage feeds from

MI which puts the customer in

control

SMS, IVR, Email Messages alerts

which your account is low

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MICRO GRID PROGRAM & THE SHARED ENERGY ECONOMY (SEE)

A recent study by Energeia (Australia) and CSIRO have sought to inform how centralized energy networks will evolve and what a transformation roadmap involving the role of micro grids and standalone power systems in delivering a fair system of prices for all customers into the future will look like and may be implemented. Energeia and CSIRO have developed a joint modelling capacity to test the impact of various policy scenarios on the efficient uptake of micro grids, and the associated impact on customer bills and equity. Key finding of the report are identified below:

1. New regulatory arrangements will be required to allow innovative service delivery for up to 27,000 new rural connections expected to occur to 2050. Almost $700 million could be saved by supplying these connections, usually farms, with a standalone power system, yet current regulations would mandate a conventional ‘grid connected’ service.

2. Without better incentives, up to 10% of customers are likely to leave the grid by 2050, increasing average bills to other customers by $132 per year.

3. Innovative network incentives, like a Stand Alone Power System tariff, would encourage over 1 million customers to choose to stay on-grid to sell energy using their own Distributed Energy Resources, resulting in lower costs for themselves and other grid customers.

4. Introducing appropriate incentives for SAPS customers saves other customers around $1 billion in network bills compared to the base case.

5. Solutions which use distributed energy resources to supply energy to a group of customers (micro grids) as an alternative to centralised grid supply can represent the lowest cost solution in some situations

http://www.energynetworks.com.au/sites/default/files/roles_and_incentives_for_microgrids_and_stand_alone_power_systems_in_australia_to_2050.pdf

Due to the rapidly changing nature of the main electricity grid, an opportunity to redefine the relationship between consumers, producers, network operators and electricity retailers exists, and will determine the cost and type of power we will access in the future.

The grid is moving from a centralised, hub-and-spoke model built around large fossil fuel generators and an expansive and expensive network, to a decentralised model where suburbs and communities use micro grids to serve their own energy needs. These may or may not be linked to a broader network.

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The Global Grid micro grid program goals are to develop commercial scale micro grid systems (capacity of less than 100 MW) capable of eliminating electricity outage times, achieving zero energy import from main grid non-renewable electricity producers and generating, storing and producing local electricity at prices at or below current electricity prices less the cost of the regulated network (currently this cost is 55% of the total energy cost). The micro grid community’s goal is also to achieve carbon neutral certification and to completely reduce or offset emissions generated by the communities.

The micro grid programs seek to deliver electricity to two types of communities:

1) New communities, with no or “thin links” to the main grid (thin links provide minimum back up capabilities to micro grids and offer export opportunities for excess capacity)

2) Existing communities, which are looking to buy back their portion of the grid from local grid operators

New Communities:

Global Grid is developing relationships with housing estate and business/industrial estate developers to help create smart micro grids with demand response programs and infrastructure, renewable generation and storage capabilities that may be built with no grid connections or have thin connections to the grid, offering green electricity at costs 80% less than current retail prices.

Global Grid has entered into discussions with housing developers to explore the

opportunities to develop smart micro grids that will make those developments

energy self-sufficient, reduce the cost of energy, provide 100% renewable energy for

both residents and their electrical vehicles. Living is Smart micro grid communities

will not only be better for your health, but it will also be better for your wallet, Fuel

costs in Australia for families average at $150 per month or $1800 P.A.,

residential energy costs for families with 2 children average over $ 3000 P.A.

Smart micro grids at significantly lower prices thereby lowering the cost of living

and household disposable income can provide both of these energy sources.

During the planning stage of new developments, Global Grid will install micro grid connections from homes/businesses to community storage and generation facilities, these facilities will have connections back to the main grid for export and back up functionality. Homes and businesses will have the option of installing HEMS, generation and storage capabilities; they will be connected to the community grid via the Global Grid network, bidirectional smart meters, negawatt trading program and

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network-enabled nodes. Electricity billing and export credits will be performed under the LORA trading platform, with all smart contracts supported and underwritten by Global Grid as the underwriter/utility.

Demand spikes and redundancy in capacity will need to be addressed as it represents a major capital cost impost on energy suppliers and ultimately consumer prices, in both main grids and micro grids. The solution Global Grid uses to address this problem relies in its ability to purchase energy on the wholesale market (therein lies the need for thin links to the main grid), and contractual demand response programs, this mechanism is covered later in the white paper in detail.

Existing Communities:

Existing communities by their nature represent the largest proportion of the electricity market and therefore need to be catered for to effect change in electricity demand and supply cycle.

Communities, towns and local councils are embracing the idea of buying back their grid and supplying, storing, distributing and exporting locally produced electricity, which will reduce price increase reliability and meet their green objectives.

This may seem to be a long-term goal but it has happened in Germany and the US and recently a new study has identified at least 40 Australian towns that could, and probably should, quit the main electricity grid, because they would be saving money for themselves and for other electricity consumers.

Residential and industrial developers are looking to develop new estates off the grid, and dozens of councils around Australia are looking to do the same with existing communities. They are exploring ways of sourcing all their electricity needs from renewable energy and are considering ways they can buy back the grid from the local operators.

The evolution from the centralized energy model that has dominated for the past century or more is being embraced not just by developers and technologists. The network operators themselves – particularly those in regional areas – recognize it an unavoidable reality. They are just trying to figure out how they fit into this new reality.

Different options are being considered on the local energy model, and who acts as the electricity supplier.

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It could be the property developer, or a specialist energy services company, or the local network – after all, houses will still need to be linked to each other and community-based facilities such as renewable generators and storage, even if they are not connected to the main grid.

Each locality will focus on its own advantages, be it in wind, solar, biomass, co-generation, or hydro, or a combination of some or all. As community based micro grids become standard for new developments and townships, particularly in regional areas, more and more existing communities will look at establishing their own smart micro grids.

As the number of councils, towns and clusters of residents and industrial communities investing into micro grids grow, a method to distribute the electricity equitably will also provide opportunities for Global Grids LORA trading platform and smart contracts

The agreement for smart micro grids is also gaining traction with main grid operators, SA Power Networks, says that it makes sense for some communities to look after their own needs. Ergon Energy in Queensland has suggested the same. In Western Australia, the local grid operator is looking to create a micro grid for the mining town of Ravensthorpe because the grid connection is too expensive, and often damaged by storms and fire.

Energy Reliability& Global Grid micro grids

Power delivery system’s complex network of substations, transmission lines, and distribution lines are not designed to withstand or quickly recover from damage inflicted simultaneously on multiple power system components. In recent years in the U.S. during weather-related events such as Hurricane Irene and Super storm Sandy. The number and duration of power outages in the U.S. continue to rise, driven primarily by weather-related incidents. The average outage duration in the U.S. is 120 minutes and climbing annually while the average outage duration in Australia was 64 minutes and the total number of outages 257, Eaton Blackout tracker report. This trend is forecast to continue, and the frequency and severity set to increase in part because of global warming, micro grids create opportunities for supply to critical infrastructure and enterprises during such events, because their grid connections are mainly in ground and are decentralized, one system failure can be compensated by excess capacity in other systems. To optimize available generation and make power available to a larger area, micro grids offer a viable solution during sudden power outages.

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A micro grid can isolate itself via a utility branch circuit and coordinate generators in the area, rather than having each building operating independently of grid and using backup generators. Using only the generators necessary to support the loads at any given time ensures optimum use of all the fuel in the micro grid area. A micro grid can integrate many features beyond backup diesel generators. Features include:

alternative energy sources such as wind and solar

gas turbines and central plants providing combined heat and power

energy storage in batteries and electric vehicles

The micro grid senses loads and fault conditions and can reroute power to as many critical areas as possible given any situation. In that way, it is “self-healing.” Thus, we define a micro grid as comprising four key elements:

local electricity generation

local load management

ability to automatically decouple from the grid and go into “island mode”

ability to work cohesively with the local utility

Backup generators only support loads immediately attached to them and they usually come into action during utility power outages. On the other hand, a micro grid consists of onsite generating sources that may include different combinations of diesel generators, gas turbines, fuel cells, photovoltaic and other small-scale renewable generators, storage devices, and controllable end-use loads that enable a facility to operate in a utility-connected mode as well as island mode, thereby ensuring energy reliability.

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Proof of Concept

When deciding on the type of software architecture to utilize for the Global Grid energy peer-to-peer proof of concept trading platform, we have analyzed a number of options, and come up with two viable platforms and three options.

The platforms we considered most appropriate for our application were Ethereum and NXT, the options were private V’s public block chain. The results from our deliberations are presented below.

Regarding Ethereum versus NXT: If we need total transparency of smart contracts and to have all

calculation logic implemented as part of smart contracts – Ethereum should be used.

Still two options: live Ethereum or fork with private Ethereum block chain

o Live option has a great risk on performance o Private more control, better performance, manageable cost

of maintenance (as hosted on own infrastructure) If we can split calculation and transfers logic between backend and block

chain itself NXT is a better option o Benefits in performance o Full control over emission of new tokens o Block chain holds all transactions on transfers and

calculation – while actual calculation and processing implemented on backend side (services based on Python for example)

We think that private block chain is a good option because: 1. Protocol, server and libraries are stable enough for production usage 2. It has programming tools that allow the implementation of the LORA trading platform in acceptable time frame 3. The private Ethereum network will provide overall good performance opposite when compared to the public network Regarding Ethereum versus NXT. We think that NXT is not an acceptable option because: 1. It does not provide complete turnkey programming language for contract

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development - the time required for the development of the LORA platform may significantly increase 2. Documentation for NXT is currently not good enough for development and deployment of real world solutions 3. Stability of this solution relative to Ethereum is significantly less robust - and ultimately, it’s difficult to provide any guarantee about reliability of end product built on this platform.

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STATE CHANNELS & Micro Transactions

A major problem in using public block chains and network nodes for decentralized

data verification at the meter lies in the amount and frequency of the data

transactions that are generated. Using industry standard five-minute interval data for

consumer accounts, a smart electricity meter will generate over a 24-hour period for

a single customer connected via single element meter 288 transactions, given that

consumers may operate multiple meters with multiple elements this figure could

easily be in excess of 1728 transactions.

Assuming Global Grid has 10,000 customers, small compared to largest utility‘s

customer bases (Fig. 6) this would generate (assume consumers have 1 meter with

dual elements) 5,760,000 daily transactions, on the Ethereum public blockchain this

would take 288,000 seconds or 80 hours/day (see explanation below) and potential

Cost USD $3.98 per transaction at an Ether price of USD$300.

Ethereum was at time of writing managing only 20 transactions per second while

Bitcoin was handling seven transactions per second. When you compare this with the

fact that PayPal manages 193 transactions per second and visa does 1667 per second,

you could see why there is a significant problem in verifying large amount of small

transactions, and why this needed to be solved before any public block chain can be

contemplated as a suitable platform for large scale P2P energy trading.

"Electricity - Energy Explained, Your Guide To Understanding Energy - Energy Information

Administration". www.eia.gov. Retrieved 2015-12-05.

Fig. 5

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REDUCE BLOCKCHAIN PROCSSING TIME & ACCOCIATED TRANCATION FEES

Global Grid intends to use an off-chain state channel method Fig. 6 to address the duel

issues of transaction process time and escalating transaction cost, by utilizing a two-way

communication channel between participants, which enable them to conduct interactions,

which would normally occur on the block chain, off the block chain. An off-chain data

verifications will decrease transaction time exponentially since the process will no longer

dependent on a third party like a miner to valid your transaction.

In order to implement an off-chain state channel there will need to be

A segment of the block chain state that is locked via multi-signature or some sort of

smart contract, which is agreed upon by a set of participants.

The participants interact with each other by signing transactions among each other

without submitting anything to the miners.

The entire transaction set is then added to the block chain.

The off-chain state channels can be closed at a point, which is predetermined by the

participants. This could be a determined by either:

Time lapsed e.g., the participants can agree to open a state channel and close it after

2 hours.

It could be based on the total amount of transactions done e.g. close the chain after

$100 worth of transactions have taken place.

I the Global Grid economy illustration above. We have a smart electricity meter,

which directly interacts with the M.I. device; given that, data is recorded at five-

minute intervals, the M.I. device over a period of time records a total of 25.15 Joules

worth of transactions. Finally, after a series of interactions are recorded , the entire

transaction chunk is added to the blockchain. Imagine how much time and money it

would have taken if they had to run every single transaction through the blockchain!

Fig. 6 Off-chain Channel transactions

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Transaction Costs

Below is a real-life example of a contract execution and the cost of verifying that transaction on the Ethereum block. This contract has three transactions associated with it, all of which use the gas-price of 20 Gwei which is the median price seen on Eth Gas Station.

The first transaction initializes the contract and deposits 0.5 ether into the contract. Transaction Cost: 0.01072934 Ether ($3.21 at $300/ETH)

In the second transaction the sender calls confirm. Transaction Cost: 0.00093492 Ether ($0.28 at $300/ETH)

In the third transaction the arbitrator calls confirm, and the funds are dispersed to the recipient. Transaction Cost: 0.00164754 Ether ($0.49 at $300/ETH)

Costs of a Real World Ethereum Contract Danny Ryan Hackernoon.com

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TOKENS

Stable Token

Joule tokens are used as a stable payment currency for the exchange of electricity and valued at the single basic unit of domestic currency (in Australia the Joule token will be called AUDJoule and is value will be $1.00 AUD) they are purchase with local fiat currency (AUD). When funds are deposited into a security deposit account. Joule tokens are created in a escrow/trust account where they are securitized by the currency that created them up to the time that the electricity retailer (prosumer) exchanges the Joules in the trust account for electricity supplied. Joule tokens are redeemed by the energy retailer against the security deposit account, this results in the Joule being destroyed by the redemption process (using ERC20 provable burn extension#661). Energy Producers, retailers, Energy Storage players, consumers and prosumers are incentivized to participate in the platform by the issuance of Energy tokens based on the volume of Joules exchanged and the type of energy produced or stored (renewable energy V’s non-renewable). Energy is purchased on a prepaid basis using joules with the home management system tracking and prioritizing the use of energy to ensure that activities are performed during the most economically times (washing clothes, air-condition temperature). Bidirectional smart meters track power consumption and supply (if available from prosumers) on an five or ten minute intervals and debit or credit the customer account with Joule tokens, should the available balance on the account fall below a specified limit the customer will be required to deposit additional funds via a payment channel into the account. When trending of power usage indicates the purchased energy, supply is being exhausted at a rate that surpasses usage rates requested or long-term trends of customer usage, messages will be sent to the customer to either reduce consumption, investigate the anomalies or purchase additional energy credits. When customer accounts reach zero supply will be shut down by the smart meters, in the advent of a loss of communication between the smart meter and the Global Grid platform, a message will be provided to service personnel indicating the location of the meter that is failing to communicate with the platform to rectify the fault.

The Joule token prepaid system of energy transactions provides costs benefits in account management fees, transaction fees and bad debt associated costs and write offs.

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Joule Life Cycle

Fig. 7

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The other token in the Global Grid economy is the currency token, and this is the one that will be floated in the initial “Token Generation Event”. Two key considerations regarding the currency token are firstly price stabilization and secondly return to investors.

How do you design to “influence” the speculation on the token value on exchanges, such that it is of use to the network?

Two solutions may involve, locking up the token for one month after crowd sale, and limiting total individual sales at the crowd sale to ¼ of the crowd sale, by having a value-limited buy per on-chain identity.

Bit Sun the currency token a ERC20 token will be divisible to six decimal places, and which is issued to raise capital to fund development of the Global Grid platform. All transactions in the Global Grid network will be subject to a fee, approximately 1.5% of the transaction value. This will include electricity consumption, and supply as well as grid charges for use of micro grid infrastructure. It is important to note that BitSun will NOT be used for payments within the Global Grid network, this function will be performed by the Joule token: Its role is primarily to fund development of the Global Grid platform and provide an entry point to the Global Grid trading platform for energy traders, the BitSun tokens also grant the owners’ a share in the Global Grid network’s fee revenue, through a buy back and burn scheme, to support the value of the currency by creating a secondary market and also reducing the number of token in circulation.

The second role of the currency token is to allow currency holders opportunities to invest into large energy infrastructure projects globally without the necessity of using or exchanging fiat currency. As large energy projects are brought to market such as the Global Grid 100 project whose capital raising will exceed AUD $220,000,000 (www.globalgrid.io/projects) a portion of the investment mix shall be reserved for BitSun currency holders. The demand for Bitsun currency from project investors will create a secondary market for the currency and in turn drive up the value of the currency and therefore the wealth of currency holders.

Paying returns on tokens Vs buyback & burn On deciding the remuneration model to reward investors we have looked into two methods, the adoption of one or the other method or a hybrid version of both methods will in large part depend on feedback from forums and advise from our legal

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team and the authorities with the jurisdictions in which we operate, given that legislation in this area is not static advice provided today may not be accurate at time of token generation. Token Return/Dividend Model By providing a return to holders of BitSun tokens there is an incentive for these holders to retain their holdings and therefore offset the risk of holding during a recession BitSun token investors can get their dividends regardless of the condition of the market. They can keep their stock, hold it, and receive the dividend when the market is in decline. When the market is in a bubble they can sell their stocks. Dividend tokens pass the profits from the network directly to the investors. Dividend tokens from truly profitable blockchain projects can in theory reward holders with interest, and thereby appreciate the value of the token above other non-dividend bearing tokens. The best way to prepare for a crypto recession is the same way we would prepare for a recession in the ordinary economy and that is to buy recession proof assets. If the crypto currency market is in a bubble cycle, then BitSun will do quite well as most tradable tokens will do, but if it becomes a recession they'll likely still do better than non-dividend producing tokens overall this is certainly the case if the underlying energy market continues to grow. Buyback& burn model Global Grid will be purchasing BitSun tokens for the buyback from the open market. The BitSun tokens that are bought by Global Grid will be burned (meaning: destroyed by a smart contract using ERC20 provable burn extension#661) thus decreasing the total supply of BitSun tokens in existence. This will not be a onetime burn/buyback, it will be continuous. The funds that will be used from the buyback will the same that could be used for a token dividend model.

Buyback V’s Dividend Summary

Holding on an Exchange — Dividends would be sent to the exchange’s custodial

address, not the individuals who should own them. Transaction costs (gas) to send dividends to 1000’s of accounts — Solved/Improved Regulatory classification — Improved Dead addresses — contribute to further increase of responsible token holders value (perfected) Tax Situation — compounding interest with differed taxes until you sell, potentially improved Liquidity — Improved liquidity, price support — if platform indexes do well, guaranteed liquidity.

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Treatment of the currency as a security is highly likely by regulators if a dividend/interest is paid to currency holders.

TOKEN SALE DETAILS

BitSun Token Distribution

Total Supply – 150,000,000

Initial Token Sale – 80,000,000

Presale - 3,000,000

Bounty, advisors and cost recovery - 2,000,000

Team and Employees - 5,000,000

Founders -10,000,000

The total supply of BitSun tokens will be 150,000,000, the amount released in the Initial Token Sale will be 100,000,000 leaving a reserve of 50,000,000

Minimum financing: 3,000,000 BitSun(including fiat currency equivalents) ,

maximum financing (cap): 8,000,000 Bitsun (including fiat currency

equivalents).

40%

30%

10%

10%

10%

Use of Funds

First Reserve Deployment R&D Marketing Operations

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1 ETH = 1000 Bitsun, Bitsun can also be purchased at the same rate of 1 ETH : 1000 BitSun using either Bitcoin, Ripple or Fiat at the conversion rate applicable at time of purchase.

Using the conversion table above (30/10/2018) 1 BitSun would cost 0.001 ETH, 0.000050 BTC or 1.520403819 XRP, or the equivalent amount of AUD, KRW, USD, or EURO

One of the major distinguishing features that sets the Global Grid token sale head and shoulders above most other upcoming token sales is the fact that we aim to accept fiat currency (AUD, KRW, USD, EUR,). We plan to use Bitcoin Suisse AG to conduct fiat transactions during the token sale. The need to purchase cryptocurrency

5000000

300000

200000500000

1000000

Token Allocation

Reserve Initial Sale Bounty/Advisers Team/Employees Founders

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to buy tokens has long been a hurdle, which prevented projects from attracting a “non-crypto” audience to their token sales.

Global Grid reserves the right to change the minimum/max financing any time before the sale begins, pending sudden and significant ETH price movements.

A percentage of the tokens will be held back for founders, developers, and the employees and development teams, an incentivizing endowment for further development and innovation. This amount will be 10% of all tokens (specifically, 6.7% to Global Grid’s founders, 3.3% to the employees and development team).

At the opening of the sale, tokens are created for every ETH/Fiat sent to us, up to the cap. At the close of the sale period, we will generate tokens for both the developers and the company (only at such a point are we are able to determine how much we need to reach 12.5%). The initial token sale will be 100,000,000 tokens, representing entitlement to 83% of the Global Grid total currency. A further 50,000,000 may be released to support the Global Grid Company as and when required.

The Global Grid BitSun Token does not grant its holders any voting rights or direct influence on the project’s development. The positive economic outcome for the owners is ensured by the 1.5% transaction fee each token accrues. In the future, Global Grid may evolve into a contract-driven organisation governed by BitSun votes, but during the first stage, this will not be the case.

BitSun will be necessary to interact with the Global Grid network. Its sole role is to enable the transfer of value from electricity producers to consumers, and to electricity storage operators and micro grid developers. In future, the Transaction Framework will make it possible to assign additional attributes to the token, so that it may perform additional functions in the energy market for example, carbon trading.

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VALUE PROPOSITION

BitSun Demand Model Jul 18 - Jun 19

Bitsun @ AUD$0.40/Token

Pre-renewable energy projects Post Project 1 Post Project 1

$

Increase in Demand Energy Projects 2018

% Increase in Demand Energy Projects 2018

Feb-18 Market Capitalization 50,000,000

BitSun Tokens 125,000,000

Token Value AUD $0.40

Project 1

Global Grid 100 250,000,000

Global Grid 100 Investor Demand (Capital Raising) Jul-18

Bitsun investement reserve 10% 25,000,000 62,500,000 50%

Global Grid 100 Company Demand (Dividend) Jun-19

Global Grid 100 Dividend Issue in BitSun 3,000,000 7,500,000 6%

Global Grid Demand (Buy & Burn Program) Buy & Burn Tokens 2018 2,500,000 5%

Crypto Investor Demand (Unknown) Currency speculators ??? ???

Project 2

Global Grid Busan 50 (South Korea) 150,000,000

Global Grid Busan 60 Investor Demand (Capital Raising) Apr-19

Bitsun investement reserve 10% 15,000,000 37,500,000 15%

Global Grid Busan 60 Company Demand (Dividend) Apr-20

Global Grid 100 Dividend Issue in BitSun

Total BitSun Demand Jun18 - Jun 19 110,000,000 76%

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The value of the BitSun currency is ultimately dependant on the demand the

currency which in turn is dependent on the size of the market for the currency and

the extent of the use of the currency.

The BitSun token demand as demonstrated by Table 1 above is driven by four classes

of market participants,

1) Currency speculators, this is a fickle and volatile market segment whose

interest rarely extends beyond currency trading. The level and duration

of demand for the currency form this sector is difficult to forecast and

predict.

2) Global Grid, the demand from the company itself lies in its Buy & Burn

program. Announcements on the quantum and timing of these

programs has a direct impact on the amount of currency in circulation,

market capitalization and ultimately price per token.

3) Global Grid Renewable Energy project investors, this market segment is

created as a result of Global Grid Project companies mandating a 10%

reserve in renewable energy projects for BitSun investors. Renewable

energy projects are of a significant scale and geographically diverse

enough to provide a significant demand for BitSun tokens irrespective of

where in the price curve the currency is currently situated. As the

renewable projects investments are denominated local currency payable

in BitSun’s, the absolute value of the tokens is immaterial to the

investors.

4) Global Grid energy project companies, these companies will pay

dividends to their investors for the life of the energy projects,

approximately 25 years. Investors that have invested in fiat currency will

be paid dividends in fiat, investors in BitSun tokens (Class 3) will be paid

in BitSun tokens, as a result the Energy Project companies will need to

purchase BitSun’s on exchanges to deliver dividends to their investors

(Class 3). This need to purchase BitSun tokens for dividends will increase

as more renewable projects are brought on line and will continue to

demand BitSun tokens for the life of the projects.

Transferring energy trading to a decentralized platform, and enabling consumers and

prosumers to offer their demand for energy in an open market, enables not only

large energy producers but also small prosumers to fulfil that demand and thereby

reduces underutilized capacity within the grid, postpone capital investments in base

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load power stations and smoothes out peak and low-price cycles within the

electricity market.

By creating opportunity for every prosumer to act as an energy retailer, and thereby

receive retail market rates for their excess capacity, P2P energy trading encourages

investment in both micro renewable generations capacity and also in micro electricity

storage capacity. Currently small and large-scale producers receive mandated rebates

for their excess renewable energy generation (Feed in Tariffs), these tariffs

internationally are being reduced and although they encourage small and large scale

renewable electricity generation they also act distort free trade within electricity

markets. Currently these government policies add about 10% to the cost of electricity

to consumers (Fig. 5), an open trading scheme would not require these policies as

renewable production would be rewarded by market forces not government

intervention.

By enabling a P2P trading to operate in an open and public platform serves to

eliminate another level of player in the energy economy, the retailers, as this level of

the electricity economy are made redundant resulting in a cost saving of

approximately 14.5% to electricity consumers (Fig. 5). This is possible because large

and small producers can contract directly with consumers without requiring a middle

retail level as is required in a centralized model. Energy contracts can be executed

through the blockchain smart contract mechanism, electricity can be sold on a

prepaid basis through smart prepaid meters or using a distribute interface device

(M.I. device) eliminating the need for invoicing, sales teams, credit control and bad

debts. These cost reductions represent costs that would have been expended by

retail energy players within the existing centralized electricity economy, the

elimination of this tier of market participant and their profit margin is reflected in the

14.5% cost reduction indicated earlier.

Additional cost reductions may be realized in newly developed residential and

industrial estates, where the opportunity exists to create smart micro grid

community based mini renewable electricity generation and storage facilities in the

100’s of MW range. By working with developers at an early design and approval stage

it is possible to supply additional grid infrastructure to individual properties via

approved electricity easements, the micro grid would act as the primary grid to the

development and the main grid would therefore be the backup supply. These

arrangements would provide developers income from their developments in per

purity without the need to retain a portion of the development for its rental or lease

income. By maintaining a low voltage community based micro grid the regulated

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network cost proportion of the total retail price to consumers can be greatly

reduced. The largest part of the cost of delivering electricity to consumers is the cost

of the Regulated Networks (Fig. 5) the cost of the network exceeds 55% total retail

cost of electricity to consumers. The cost of maintaining regulated networks is in part

due to the location and size of base load power plants and the need for electricity to

be transmitted at high voltage across vast distances to sub stations that convert and

deliver in to low voltage infrastructure to be used by homes and businesses. Micro

grid planned community networks with electricity generation and storage capabilities

with primary connections to homes, businesses and industry could significantly

reduce the regulated network costs to consumers, by reducing the main grid and

base load energy requirements of the communities and therefore the cost to the

government to supply these communities. Given that this component of electricity

represents more that 55% of the retail electricity cost, positive outcomes in reducing

these costs will have significant knock on effects for consumers and those

responsible for the capital and expense costs of the networks (government in

regulated markets & industry in deregulated markets)

Fig. 8 Electricity cost structure Australia

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SMART CONTRACT SUPPLY CONDITION “OVERSELLING + NEGAWATT PRICING”

Overselling or overbooking is sale of a volatile good or service in excess of actual

supply. Overselling is a common practice in the travel and hospitality and internet

sectors, in which it is expected that some people will cancel. The practice occurs as

an intentional business strategy where sellers sell 100 % of their resources, assuming

that some buyers will cancel or not use the maximum amount of their allocated

services/products. The practice of overselling aims to ensure that 100% of available

supply will be used resulting in the maximum return on investment. However, if most

customers do wish to purchase or use the sold commodity, it may leave some

customers lacking a service they expected to receive, and when this is electricity it

will mean that homes/businesses will be without power or will be required to pay

higher prices to access the amount of electricity they need.

Global Grid will ensure that Supplier Smart Contract conditions do not provide

opportunities to oversell their electricity stock. In order to ensure the Global Micro

Grid economy producers do not “Oversell” their electricity supply the following

conditions are enacted in all supply contracts.

SUPPLIER CONTRACT SUPPLY CONDITIONS

1.1 Mandate Reserves

Executed supply contracts in aggregate will not exceed 90% (T.B.A.) of the total

capacity of each energy supplier.

1.2 Price flexibility in excess demand markets

When electricity demand exceeds the 90% mandated supply capacity limit, a new

pricing model is enacted, this applies to only consumers that have exceeded their

historic/agreed contract limits. The pricing of electricity at this stage will be

consistent with retail electricity available on the open market. The price increase will

act as a disincentive and curb over use of electricity to restore the micro grid to

equilibrium.

1.3 Negawatt trading

A negawatt asset & liability will be created at the time of the execution of supply

contracts when supply limits are reached (demand exceeds 90% of total capacity),

the negawatt assets can be called upon to reduce energy demand and prevent

brownout/blackouts from occurring as well as limiting the extent of price spikes.

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Negawatt assets will be created through two mechanisms the first via smart contract

conditions on execution of the contract (Compulsory Demand Response Mechanism)

and the second via active variable incentive programs (Voluntary Demand Response

Mechanism similar to government initiated programs globally, only contractually

enforceable)

The voluntary programs operate when individual consumers will be contacted

automatically via the home/business energy management system or by Global Grid

representatives to advise of opportunities to achieve Joule credits via the negawatt

incentive program. The value of one negawatt hour of electricity (nWh) will be a

floating value and time dependent, it will be calculated by the total remaining

electricity reserve, the premium of the average peak electricity retail price within the

micro grid geographical area over the average value of electricity contracted for that

time of day. The applied negawatt credits are converted to Joules through the

trust/escrow account, where they can be credited to the consumers smart meter or

redeemed as cash, this negawatt creation mechanism is part of the supplier and

consumer smart contract conditions.

An example follows assuming there is an extremely hot day and that electricity

demand has exceeded demand modelling and historical data consumption patterns,

and the remaining capacity in the micro grid is currently 15% this is 5% below

required reserve levels. Assume the current household tariff (Tariff 12 Australia) peak

electricity rate is $0.36/kWh and that the micro grid average price for the same time

of day is $0.20/kWh the difference is $0.16/kWh. The price for 1 nWh (negawatt)

would therefore be $0.16* (20/15) = $0.213 or 0.213 Joules (20% is the mandated

reserve capacity, 15% is the current reserve capacity the loading for negawatt = 1.33)

1.4 Supplier contract under-righting pricing

Global Grid + wholesale electricity licence will act as a market of last resort to

underwrite all smart contract electricity supply agreements. Global Grid + will fulfil

producer supply contracts when they unable to meet their contractual arrangements,

electricity supplied under such an arrangement will be provided to the supplier at

retail + rates applicable at time of supply. Suppliers will be contractually obliged to

supply their customers at rates agreed to in the smart contracts, the difference

between the suppliers contracted electricity price and the electricity price provided

by Global Grid + retail price will determine the maximum negawatt price value at

which suppliers can implement a demand response mechanism based on the issuing

of Joule tokens redeemable as energy credits to the meter or cash through the Joule

trust/escrow account.

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Negawatt Demand Response Electricity Trading & Secondary Energy Market

Negawatt power is a theoretical unit of power representing an amount of electrical power (measured in watts) saved. The energy saved is a direct result of energy conservation or increased energy efficiency. The term was coined by the chief scientist of the Rocky Mountain Institute and environmentalist Amory Lovins in 1985, within the article, "Saving Gigabucks with Negawatts," where he argued that utility customers don’t want kilowatt-hours of electricity; they want energy services such as hot showers, cold beer, lit rooms, and spinning shafts, which can come more cheaply if electricity is used more efficiently.[1] Lovins felt an international behavioural change was necessary in order to decrease countries' dependence on excessive amounts of energy. The concept of a negawatt could influence a behavioural change in consumers by encouraging them to think about the energy that they spend.

A negawatt market can be thought of as a secondary market, in which electricity is allocated from one consumer to another consumer within the energy market. In this market, negawatts could be treated as a commodity. Commodities have the ability to be traded across time and space, which would allow negawatts to be incorporated in the international trading system. Roughly 10% of all U.S. electrical generating capacity is in place to meet the last 1% of demand and there is where the immediate efficiency opportunity exists.[2]

Current negawatt trading schemes operate between contracted energy consumers and suppliers, this arrangement assumes electricity retailers will pay consumers credits on their accounts during peak energy cycles to reduce their consumption in return for levelling out peak demand for electricity. The fundamental problem with this model is that the energy retailers are not generally the producers of electricity and have no capital outlays for construction of electricity plants and infrastructure, and as a result would have no incentive to participate in the program. As a business model, negawatt trading programs that are currently envisaged also do not make sense, peak electricity currently at $0.35618 / kWh (Fig. 3) would need to credited back to the consumer plus a rate which rewards them for forgoing say a cool room when the air temperature is say 40° C. Simply turning off the air-conditioner for two hours would create a forgone expense for the consumer of $0.71, and forgone revenue for the supplier for $0.71, in addition say the consumer is rewarded by a $0.30/kWh credit to their electricity account (85% of the peak electricity rate) this would increase forgone revenue for the supplier to $1.31. It would make more sense for the supplier to purchase feed it tariff electricity at $0.06 per kWh (Fig. 2) or through a Global Grid electricity storage and trading platform at say $0.12 per kWh, this electricity is sourced from outside the

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supplier/producers production facility and requires no additional investment in infrastructure or assets. Negawatt credits are not tradable and have no value for an electricity producer where the holder of those credits are not their customer; they are in fact loyalty programs that reward reduced consumption during peak electricity cycles. In order for Negawatt credits to be functional in their purpose as a reducer of power demand across the whole electricity network and not just between individual consumers and their contracted suppliers, they need to be consensus priced and tradable or exchangeable.

The Japan Ministry of Economy, Trade and Industry has recently has drawn up guidelines for negawatt trading, including power-saving calculation.

The demand response program is an initiative with the aim of controlling electricity peak demand. In particular, negawatt trading, which is a system in which electricity utilities utilize negawatt aggregators to pay for the amount of electricity saved by consumers (negawatts), is expected to become common after the inauguration of a new negawatt trading market in April 2017.

In the program, negawatt aggregators will play a core role in serving as a mediator between consumers who control electricity demand and electricity utilities and in tallying electricity savings from consumers. Utilities are to pay an annual 3,000 to 5,000 yen ($26-$43) per kilowatt of power saving to negawatt brokers, which will use a portion of the money to pay rewards to customers. Utilities are willing to pay those amounts because being able to forgo capital investment to maintain surplus power-generating capacities in this way would allow them to save considerable money.

Four utilities -- Tokyo Electric Power Co. Holdings, Kansai Electric Power, Chubu

Electric Power and Kyushu Electric Power -- aim to lower power demand by a

combined 960,000 kilowatts, comparable to the output of one typical nuclear

reactor, in fiscal 2017 through negawatt trading.

The government aims to reduce peak demand by 6% through negawatt trading by

fiscal 2030. This would eliminate the need for 10 million kilowatts in power

generation capacity, or 10 nuclear reactors, allowing power companies to slash up to

90 billion yen a year in facility renovation, construction and operations costs.

(Nikkei Asian Review) February 16, 2017 8:00 am JST

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Market Overview

Under current legislate arrangements in many countries distributed energy resource (DER) Feed in Tariff (FIT) schemes tend to focus on providing support to solar PV particularly in the residential context, and project limits on installed capacity are generally less than 10 kW, effectively this means that FITs do not support large scale projects such as wind farms or solar thermal power stations. Owners of distributed energy resources (DER), that operate outside of feed-in tariffs (which will be everyone), are forced to ‘waste away’ the electricity, that they feed into the grid, for two or three cents per kilowatt-hour. Essentially an uneconomical operation and waste of a precious resource that could be diverted into energy storage facilities via micro networks or virtual net metering. Operating DERs is not economic under such circumstance and operations will halt eventually if the underlying market model doesn’t change. Global Grid’s disruptive energy model facilitates the movement of post FIT scheme residential renewable energy resources via virtual metering or smart micro grids to energy storage facilities during off peak tariff times, and re-enters the stored energy into the national grid at peak energy tariff times to produce an income multiplier effect.

National Electricity Markets (NEM) set maximum and minimum sport rates, in Australia in 2018, this was $14200 MWh (AUD) and $1000 MWh (AUD) This floor price allows generators to pay to stay online when the cost of staying online is lower than the cost of shutting down and re-starting their plants. For a renewable Storage

Fig. 9

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operator, this means they generator this income while storing energy during off peak times and by distributing power during peak energy tariff times.

A proof of concept renewable smart micro grid with Energy Production using Solar PV, Energy Storage using Solar Thermal, Prosumers, consumers and P2P virtual and physical trading via bi-directional smart meters has been developed at Hills Educational Foundation Jimboomba Australia. The exercise has been undertaken to test the dynamics and inter relationships between the various players, the regularity authority, the effect of climatic and geographical variables on outcomes, the profitability ratios of the exercise and its viability for real world applications.

An embedded 20 MW smart micro grid generation, storage and distribution network is also being developed within a newly commenced residential community development. This will form part of a larger network of other similar facilities they are connected virtually and will deliver large amounts of peak energy to the national grid at the time when it is most required. The addition of this type of facility into a development proposal changes the R.O.I. of the project and eliminates the need for a sell hold decision to be made. After the development project is complete and the investment properties available for sale or rent, the profit / income is dependent upon developer’s strategy to sell or hold, if an additional income steam is created then a larger proportion or all the development can be sold. These decisions are taken before commencing the development project, and with small initial changes to easements of the properties and land set aside for solar P.V. production and storage, it is possible to create an integrated smart micro grid as well as a micro energy production and storage facility to enable P2P energy trading with consumers, prosumer, micro energy producer and storage facility operator that is outside the main grid and therefore outside the regulatory framework. The amount of land that needs to be set aside in the development for solar P.V. collection can be dramatically minimized through the creative use of building covenants that require properties to install minimum amounts of P.V. panels, which may be subsided, and excess energy purchased from the owners at an agreed rate. Property covenants are covenants are a private treaty, which councils do not create or monitor them, is to ensure the quality of all builds within a development/area. This often results in houses within a development adhering to a certain ‘look’ but also to a certain level of quality, ensuring the economic health of the entire development. The community although connect to each other via the smart micro grid will still be connected to the main grid as an energy back up as well as a channel to distribute excess energy generate by the community.

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The result of this energy infrastructure and trading platform created within such developments is to generate for the residential/commercial property developer addition income streams into the future and the ability to participate in the Energy currency-trading platform, thereby adding another customer to the trading platform and increasing the demand for the energy currency and the payment token.

Our vision for the platform is the creation of a virtual network of energy traders and consumers using decentralized smart micro grid infra-structure (virtual and/or physical) with physical connections to the national power grid to produce, storage, distribute, and consume majority renewable energy.

The ultimate goal for the blockchain is to enable the development of an integrated trading system that would permit businesses to trade their option to use electricity any time of day. Businesses will be able to sell unused power during a down time to a different business or home that needs the additional power. Trading grid flexibility in this way could provide large efficiency benefits for grid operators.

In a deregulated economy, the Global Grid platform will operate as a commercial utility with the ability to enable P2P transactions to occur between consumers and prosumers, and other operators on the micro grid network, and between micro Grid networks by using net metering. Global Grid production & storage resources will enable the underwriting of the supply contracts with stored energy in case of production failures and excess energy will be traded on the national electricity market. By using efficiencies of the Ethereum blockchain Global Grid will significantly reduce administrative costs associated with the trade in energy, and create a smarter energy management system to predict electricity usage and alter consumption patterns to access the most economically energy available and or prioritize operations within consumers businesses or households.

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In a regulated market lessons from regulated industries show that disruptors can topple the incumbents in these industries by first innovating outside of the reach of regulators; as the up-starts accumulate a sufficient number of customers, regulators cave ex post facto to the new reality in reaction to the innovator’s success. The obvious example of disrupted models of success in a regulated market to illustrate the point is Uber. “Disruption” describes a process whereby a smaller company with fewer resources can successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they exceed the needs of some segments and ignore the needs of others. Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more-suitable functionality—frequently at a lower price. Incumbents, chasing higher profitability in more-demanding segments, tend not to respond vigorously. Entrants then move upmarket, delivering the performance that incumbents’ mainstream customers require, while preserving the advantages that drove their early success. When mainstream customers start adopting the entrants’ offerings in volume, disruption has occurred. December 2015 issue (pp.44–53) of Harvard Business Review Global Grid will operate in the regulated energy market using the same underlying Disruption principals while addressing the key indicators below.

1. Target non-consumers or people who are underserved by an incumbent’s existing offering in a market

2. Provide innovation that is simpler to use, more convenient, and more affordable than the incumbent’s existing offering

3. Provide a technology enabler that can carry our value proposition around simply, conveniently, and more affordability upmarket to allow it to improve

4. Ensure technology will be paired with a business model innovation that allows it to be sustainable with its new value proposition

5. Progress in a manner that existing providers are motivated to ignore the innovation and are not threatened at the outset

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Legal

The Global Grid project will operate under Singapore jurisdiction with the establishment of subsidiary legal entities in the countries of actual presence, the initial country being Australia. The company in Singapore will be registered and the ICO will be offered in both Australia and the Republic of Korea. Singapore’s central bank recommends that businesses operating within the cryptocurrency industries should seek independent legal advice to avoid running afoul of the new ICO regulations. “All issuers of digital tokens, intermediaries facilitating or advising on an offer of digital tokens, and platforms facilitating trading in digital tokens should therefore seek independent legal advice to ensure they comply with all applicable laws, and consult MAS where appropriate.” We plan to declare all the profits in accordance with the existing legal requirements, pay taxes and comply with all relevant legislation within our target markets.

Just as with Kickstarter, you’ll be taxed at the end of the year on your total income minus expenses. This is one reason why so many companies and orgs are in Zug, Switzerland — corporate income tax is around 14 percent. While you consider ether to be “cash,” the tax authorities do not. You need to sell ether and buy it back just to realize the loss and reduce your taxable income for the year.

You are not eligible and you are not to purchase any BitSun tokens in the Global Grid Initial Token Sale (as referred to in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America or a citizen or resident of the Republic of Singapore.

No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with.