Using crypto currencies as precedent, Decentralized Energy Coin mimics the peer-to-peer transfer of ownership of virtual tokens using cryptographically secure shared ledgers.
Proof-of-Stake
We will use the proof-of-stake consensus mechanism for reduced energy usage.
Energy Ownership
Currently, when energy is used, it is tracked through energy meters measuring usage for energy supplier to charge.
We want to transfer the ownership of the meter to the owner of the house, and the user of the energy.
When electricity flows through meters, its transfer will be stored in shared ledgers as proof of use, and proof of sharing.
Selling to the Grid
If energy from a home battery is shared to a local grid, that will be stored on said shared ledger. The seller of the energy will then receive the equivalent in DEC to their connected energy wallet.
1 DEC - 1MWh
Grid Charge
Due to usage of the grid, sending any amount of energy will have cost. Maintenance of local grids as well as any step ups to larger grids will add to the value of energy transfer.
Sending from your house to your local grid will only decrease demand on your local grid. The physical energy transfer is likely to stop here. However, there will be a further demand on the receiving grid, meaning overall knock on equivalences must be calculated and accounted for.
Sending to local grid would only require cost of local grid, whereby sending through regional and national grids will accumulate charges.
Thereby sending to closest grids will be cheapest.
Selling to Peers
Sending energy from one user to another entails allocating a set amount of energy from one home battery, into the grid, to the other. Once the receiving battery verifies receipt of energy, DEC is transferred to sender.
This means the energy may not physically travel the distance, but the equalising of energy pools means overall energy is equated.
Spending DEC
DEC is a fungible token, so it’s value is equated through the open market. This open market, through supply and demand, will set the price of electricity, thereby ensuring all energy is bought and sold at fair prices
1 DEC = 1 DEC
Generation
For distributed generation, all energy is immediately sent to the grid as centrally generated, and resulting DEC is distributed based on backing value.