The power sector is facing a transition from a centralized structure with a small number of “large-scale” energy providers (hydro, coal, gas and nuclear) to a decentralized scenario of Distributed Energy Resources (DER), such as solar and wind.

The complexity of regulations and the cost of entry are two main reasons for the monopolies operating in energy markets globally.

On the other hand, consumers are showing a greater desire to have more control over how the energy is consumed, generated and distributed.

A brief overview of the present situation in relation to energy distribution and the challenges. If the readers are accustomed with the subject, they may skip this section.

Presently, energy services can be divided into generation, transmission, distribution, and retail.

Generation is electricity production by commercial scale energy producers. Historically these producers have been classified into hydro, fossil-fuel or nuclear based power plants.

Recently, large alternative energy production facilities are considered as a “energy generators” too.

Transmission is moving of high-voltage electricity over long distances, usually from power plants (generators) to consumer networks (distributors).

Distribution is moving of electricity from the transmission (high voltage) network to the consumers. Distributors operate lower-voltage electrical lines.

Retail (energy utility) business sell the electricity to the consumers. Retailers are responsible for administering and billing consumers.

In regulated markets, the energy supply chain operates as a single, vertically integrated monopoly. In deregulated markets there is market segmentation and more competition, so each role in the supply chain must be operated by a separate entity.

Residential electricity retail price is in constant rise. Traditional energy retailers Gross retail margin has increased as well. The biggest risk for current retailers is usually the wholesale cost of electricity generation — electricity spot prices fluctuate every five minutes (the basic interval for trading on the National Energy Market). Spot prices are determined in real-time based on some combination of electricity demand volume, generation capacity available and fuel type composition (e.g. a mix of wind, coal and gas). Part of the premium that they put on electricity usage charges has to do with the risk that they take.

In deregulated markets, energy retailers (utility companies), buy electricity at wholesale prices and sell it directly to consumers. Retailers are responsible only for metering and billing. About 50% of the cost of retail electricity is used to pay for the electrical energy. The other half goes for administrative, marketing, risk management, and bad debts, plus loss in electricity transmission.

Renewable energy solutions are much more efficient and environmentally friendly. Typically, produced energy is used by household and any excess generated will be sold back to the grid. For a household sustainable solution, when deployed at significant scale, introduces severe technical challenges how to balance stability of the electrical grid designed only to feed in energy, but not handle energy feedback into the electrical grid, causing over-voltage and potential infrastructure damages.

Solar energy generated during the day, but the peak demand is in the evening. Therefore, power plants must adjust electricity production as soon as sunlight exposure changes, which is not efficient and adds additional burden on power plants and energy distribution. Improvements in energy storage capabilities and drop in production cost make batteries economically viable.

Energy produced locally will be traded and consumed locally, with minimal impact to the rest of existing electrical grid, avoiding high-voltage or low-voltage damaging situations and lowering the transmission loss which occurs over longer distances.

Serenity members consumers will benefit through lower price of electricity and getting a better deal for produced and exported energy. Blockchain technology and Smart Contract utilization will minimize administrative costs.

Production of renewable energy will be rewarded by Carbon Credits.

The distributed ledger architecture will provide secure and immutable proof of tokenized asset ownership and facilitate a variety of energy market transactions implemented through the set of smart contracts enabling trust-less environment for all Serenity members (consumers, prosumers and operators).

Serenity is a next-gen renewable energy retailer on blockchain looking to reduce energy bills, put control back on users’ hands and reduce carbon emission through multifaceted blockchain ecosystem.