This document proposes incentivizing local renewable energy producers through a blockchain-based local grid system with smart contracts. It assumes consumers are willing to pay more for local renewable energy. Producers would get their usual feed-in payments plus supplemental donations from consumers. A smart contract would distribute donations to producers based on energy provided. A pilot program could have 0.5% of German households donate monthly and 5% of PV plants participate, generating over 26 million euro annually for producers while providing transparency and flexibility. A roadmap outlines planning, building, and operating the local grid system over multiple months.

1. Incentivize local renewable energy producers
Dr. Martin Berger
Dr. Andreas Szinovatz ITP Innovative Technologie Projekte GmbH

2. © Bente Stachowske / Greenpeace
Global warming is a fact!
Source: Redrawing the Energy-Climate Map, World Energy Outlook Special Report, International Energy Agency (IEA), Juni 2013

3. Photovoltaic – leader of renewables
Source: Aktuelle Fakten zur Photovoltaik in Deutschland, Fraunhofer ISE, April 2016
Water
Biomass
Wind
Photovoltaic
InstalledPower[GW]
Foto: Roto, wohnen-magazine.de

4. Decreasing motivation to feed-in in Germany
More self-consumption
Less production & feed-in
Reduced positive impact
on network & climate
Feed-in
remuneration
8.5-12.3
Cent/KWh
Production
costs 10-14
Cent/KWh
Electricity
price 29
Cent/KWh

5. Decreasing motivation to feed-in in Germany
More self-consumption
Less production & feed-in
Reduced positive impact
on network & climate
Feed-in
remuneration
8.5-12.3
Cent/KWh
Production
costs 10-14
Cent/KWh
Electricity
price 29
Cent/KWh

6. Local grid via blockchain & smart contracts
Producer Producer
Producer
ConsumerConsumer
Consumer
Assumption
Consumers are willing to
pay a higher price for
renewable energy provided
by local producers.

7. Feed-in of producer Anna is blockchainified
Her smart meter measures the feed-in supply and
publishes it to the blockchain
Anna feeds in and receives usual feed-in remuneration
Anna monitors stats of her
contributed energy on her mobile
Producer
Anna

8. Consumer Tom supports a local grid
Tom consumes the energy of his energy provider as usual
He donates a monetary supplement to the local grid
in form of cryptocurrency
His supplement is transferred to a pay-in address
managed by the local grids smart contract
Consumer
Tom

9. The smart contract of a local grid
The smart contract distributes the total pay-in of the consumers in proportion
to the provided energy to the payout addresses of the producers
contract LocalGrid {
struct Producer {
address addr;
uint amount; // produced KWh since last payout
}
mapping (uint => Producer) producers;
...
address public balance;
uint public nextPayoutTime;
uint public donationPeriodInDays = 30;
...
function addConsumerDonation(uint amount) { ... }
function receiveProduction(uint producerId, uint amount) { ... }
function payout() { ... }
}

10. Consumers
• Contribution to
climate protection
• Support local
producers
• Flexible
• Transparent
• Easy
Producers
• Monetary
supplement
• Minimal overhead
costs
Energy System
• Minimally invasive
• No new
infrastructures
Benefit

11. Figures for Germany
0,5% German
households
donate 13% on
top of monthly
electricity bill
(11 €)
5% of German
PV plants
become local
grid producer
5% = 354 €
yearly surplus
for producer
40.2 Mio Households 1.5 Mio PV plants 26.5 Mio €

12. Roadmap
Month 1 2 3 4 5 6 >=
Plan
Build
Run
Idea
Technology decisions
Define join/leave process
Legal implications
Marketing strategy
Friendly customer
Funding
Partner
Product roadmap
Pilot
Rollout
Operations
1st Prototype
Smart meter integration
Mobile app development
Design of smart contract
Blockchain integration
1. Plan
3. Run
2. Build

13. The team
Dr. Andreas Szinovatz
CEO
Computer Scientist, Founder, Visionary
Dr. Martin Berger
Head of R&D
Mathematician, Bitcoiner, Allrounder
www.itp-world.com
Andreas Deil
Lead Developer
Physicist, Linuxer, Perfectionist