WePower ICO Review — Utility Token with solid use case or Just another ICO?

Description:
WePower is intending to disrupt energy markets through open green energy investment and trading solutions.

WePower will enable renewable energy producers to raise capital by issuing their own energy tokens. These tokens will represent energy they commit to produce and deliver later. Energy tokenization standardizes, simplifies and opens up globally existing energy investment ecosystem. As a result of this, energy producers will be able to trade directly with the green energy buyers (consumers and investors) and raise capital by selling energy upfront, at below market rates. Energy tokenization ensures liquidity and extends access to capital. WePower blockchain solution was recognized by Elering, one of the most innovative Transmission System Operators in Europe.

As per WePower, to optimize the financing cycle and open access to capital, WePower will enable the energy tokenization. Tokenized energy can be considered as a contracting mechanism between an energy producer (Producer) and energy buyer(Consumer)

The founders say WePower will offer electricity contracts at a lower price than what is provided on the conventional market. In Spain, launch market for WePower, they estimate that 1 megawatt-hour will cost $39-$40 per unit against a standard wholesale price of $47 per unit. That would be a 17% saving and the unit itself would be tradable, meaning we could sell on the token if the price was rising (say, because there was a shortage of renewable power available at any time).

Team and Partnerships/Operational plan

Global team of energy experts with 10+ years of experience

Secured partnerships with global energy developers

Nationwide energy tokenization pilot in Estonia

Project supported by the Government

1.24 trillion USD market potential

Operational within 9 months since the token sale (This is an ambitious target but the team clarifies on why such a goal in their medium post)

WePower token model
The WePower platform allows renewable energy producers to tokenize and sell the energy they produce. A renewable energy producer connected to the platform issues its own energy tokens within the WePower platform, where 1 energy token represents 1 kWh of green energy to be produced in a certain time in the future (usually within 4–6 months from the connection moment).

Each renewable energy plant connected to the WePower platform will organize an auction for the sale of tokenized energy. WePower token holders will have priority access to such auctions and their allocation will depend on the number of WePower tokens they have.

The owner of these energy tokens has the following options:

1. First — use the energy when it is produced, if the energy was purchased for a development

project in the buyer’s home market.Note that WePower will physically deliver energy based

on the number of energy tokens held, once WePower enters a token owner’s home market

and begins operation under an independent energy supplier’s legal framework.

1. Second — sell the energy before its production within the WePower platform to any other

user.

1. Third — automatically sell the energy to the wholesale energy market once the energy is

Blockchain function
Blockchain allows:

• Innovative community interaction across applications

• Provide 3rd party liquidity through exchanges and decentralised exchange protocols

• Enhanced efficiency due to smart contract elimination of intermediaries

• Enhanced security due to immutability of data

• Cheaper maintenance vs centralised database

• History of transactions and prediction of transactions

• Fault tolerance for DApps due to decentralised nature of blockchain

WePower token model

Token sale
Main terms of WePower token sale:

Token creation will end when either the maximum number of WPR is issued or the contribution period has ended. If less than the minimum soft cap of tokens are issued, token sale contributions may be retrieved.

Website : https://wepower.network/

Whitepapper: https://drive.google.com/file/d/0B9QClujD9ilRSGVxMXcwdUstN0E/view

Twitter https://twitter.com/WePowerN

In a nut shell…
Energy production is a VERY LARGE business:

1. 24,756 TWh3 energy produced each year in total.

2. 24,756,000,000 MWh energy produced from renewable sources.

3. Assuming the LEC (Levelised energy cost) from solar and wind averages 50 EUR/MWh (most likely less costly), total market of energy production alone and sales is 1.24 trillion USD.

4. Current yearly investments in renewable energy amount to 242 billion USD4.

WePower solves the following energy market insufficiencies:

Global access to capital for green energy projects
Global access to green energy investments and trading (i.e. liquidity)
Speed and transparency

My thoughts

I think the team is able to convey the need for this token and the problem they are intending to solve using their product very well. I stand convinced of the use case after going through their videos and whitepapers. The team looks competent and I expect them to do well. The 9 month target for product launch looks ambitious though. I am planning to invest in this ICO and I am expecting good returns in the long/short terms. I have invested in POWR in the past and I believe this can be another dark horse.

My Rating 4.25/5 (subscribe)