3. Market Paradigms
Market 1.0 – decentralised, disconnected, physical
Market 2.0 – centralised, connected, intermediated
- Debt (Banks) and Equity (Joint Stock Company)
- October 2008 – the Market 2.0 paradigm broke
How do we achieve a resilient Market 3.0 ?
4. Introduction - Resilience
Resilience - the enduring power of a body or bodies for
transformation, renewal and recovery through the flux of
interactions and flow of events
Resource Resilience – Natural Grid
Financial Resilience – Open Capital
5. Resource Resilience – Natural Grid
Since 1980 Denmark's GDP rose 78%
Energy use has been stable
Carbon fuel use has declined
How did Denmark achieve this?
6. Resource Resilience - Natural Grid
Least Energy Cost principle
- not 'least Danish Krone cost' (or least $, € or £ cost)
- minimum carbon fuel input for a given output of
electricity, heat or power
- investment in renewables, heat, transport, energy
efficiency
7. Emerging Outcomes of Natural Grid policy
- decentralisation
- skills base of knowledge and knowhow: eg Vestas is
the biggest global wind turbine manufacturer......in a
country of 6m people
- trend to energy security and energy independence
- not forgetting........reduction in carbon use
8. Financial Resilience – Open Capital
Prepay – credit returnable in payment for value
Nondominium
- People-based (P2P) Credit – Guarantee Society
- Asset-based Credit – Capital Partnership
10. Tax Prepay
Tax Prepay – credit returnable in payment of taxes
Tax Return – 'stock' part of tally stick returned to Treasury
Rate of Return - rate over time at which stock is returnable
for cancellation
eg Prepay £8 for £10 tax - £2 profit 25% pa rate of return
- not fixed - depends on existence & quantity of flow
11. 21st
Century Prepay
Land – credit returnable in payment for land rental or
production from land
Energy – credit returnable in payment for energy
13. Land Prepay – the Value Proposition
Community
- sells rentals forward and locks in price
- interest-free loan until prepay unit returned vs rental
Occupier
- prepays rental and locks in price
14. Land Prepay – the Value Proposition
Investor
- direct 'inflation hedge' investment in land
- Occupiers buy prepay credits from Investors at best
price below issue price & return against rental
Manager
- shares in gross rentals or production
- interests aligned with Investor
- no 'Principal/Agency' problem
15. Land Partnership - Outcomes
Social Contract - relationship-based not transaction-based
“4 B's” model - costs transformed to revenue shares
Neutral – removes ego and politics
Collaborative - stakeholder interests aligned
Sustainable - all have interest in minimising cost over time
17. Energy Prepay – the Value Proposition
Community
- sells energy forward and locks in price
- interest-free loan until prepay unit returned vs supply
Consumer
- prepays for energy and locks in price
18. Energy Prepay – the Value Proposition
Investor
- direct 'inflation hedge' investment in energy
- Consumers buy credits from Investors at best price
below physical energy price & return against supply
Manager
- shares in gross revenues or production
- interests aligned with Investor
- no 'Principal/Agency' problem
19. Energy Partnership - Outcomes
Social Contract - relationship-based not transaction-based;
costs transformed to revenue shares
Neutrality – removes ego and politics
Collaborative - stakeholder interests aligned
Sustainable - all have interest in minimising cost over time
20. Mega Watts and Negawatts
Mega Watt production of renewable energy sells at the
wholesale market 'bid' price
Nega Watt production is made by consumers at the retail
market price
But Green Deal has two problems
- compound interest on bank £ loans
- even if £ is saved, no guarantee energy will be saved
21. Bristol Green Deal
Investor paying £1k for Units in Bristol Energy Pool
- 20 1Mwh prepay Units @ £50 each
- 2000 10 Kwh prepay Units @ 50p each
Fund invests at community level through energy loans
eg community CHP/co-generation
Loan repaid via energy bills through buying prepay
energy units at market price
Interest-free loan – return to investor in energy
Unless consumers save energy they will not save £
22. Bristol Green Deal
Custodian
Bristol Energy Pool
Custodian
Bristol Energy PoolInvestors
Consumers
Manager
£ Energy
Loan
Buy units
at market price
£
Prepay
Prepay
Units
£
£
