¶ Welcome to BESC
Blockchain Energy Savings Consortium (BESC) platform is intended to be a ledger for the energy generation (Renewable Energy Certificates/RECs), energy use, energy reduction and avoided CO2 emission (Certified Emission Reductions/CERs) for any electrical equipment that is managed by an intelligent energy management system in industry, building or home.
BESC is a private-permissioned consortium-based blockchain Measurement, Reporting & Verification (MRV) platform to enable energy project owners to keep track of their energy savings (energy efficiency) and/or energy generation (renewable energy) data for standard compliance & verification and able to provide shared- savings incentives and/or payment settlement via blockchain network.
BESC employs decentralized storage (IPFS) to store the energy performance data and uses smart contract to perform transaction settlement. With the data stored on the blockchain network, which is immutable and secured, the energy data can be converted into the carbon emissions data. The independent third-party auditor can use the collected data for verification and certification of the carbon emissions savings to produce the certification for carbon credit trading.
BESC blockchain network operating model aligns to Decentralized Autonomous Organization (DAO) which is an organization represented by rules encoded as a computer program that is transparent, controlled by stakeholders and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain, and is reliant on three key roles:
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THE GOVERNING ENTITY (Consortium Committee) represents and is accountable to the interests of the entirety of the network as a priority, with an expectation of complete integrity and continuous reliable operation. The governing entity owns responsibility and accountability for creating the policies, rules of conduct, operating procedures, controls, standards and so on, to establish a shared platform that benefits all members fairly. All the decisions will be proposed and made by the committee voting process using the wallet with a minimum fee (network token). A new member can be joined in the consortium by sign up the application KYC (Know Your Customer) form from the BESC website. Then the member application will be required to screen through by at least 3 existing members and the network administrator which they will be getting notify and do multi-signature via their e-wallet. An existing member would like to opt-out from the consortium also required to submit a withdrawn form and multi-signature with his own e-wallet to free up the tokens owned.
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THE NETWORK OPERATOR (EPC Blockchain & ProximaX) is in charged of operating the blockchain network fairly and objectively for the benefit of all members in accordance with the policies and procedures of the governing entity. This role ensures operational safety and soundness administration of the network. The network operator is entitled to get a fee (Energy Savings Coin and network tokens) from the network transactions as a payoff of the administration and maintenance works.
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THE MEMBERS OF THE NETWORK COMMUNITY include direct and indirect network participants and other third parties with interests (tokens sharing) in the network. Examples include Project Owners, EMS providers, Facility service providers, M&V Consultant, Energy providers, ESCOs, Finance Institutions, regulators, industry associations, software vendors, and so on. Each member of the network has a primary responsibility to their shareholders and owners.
¶ SERVICES TOKENIZATION
The purpose of tokenization is to digitalize the energy savings/carbon emissions savings/certificate values into digital token assets for facilitate consortium stakeholders to do shared savings or payment settlement easily. The token assets are designed to work as a medium of exchange that uses strong cryptography to secure transactions settlement, control the creation of additional token units, and verify the transfer of token assets.
Based on the BESC ecosystem, the following services are to be tokenized to facilitate payment settlements and fundraising for investment returns.
¶ Energy Savings Coin (ES Coin)
- ES coin as utility coin (token) of a project used for internal energy savings/generations bill settlement. With 1 kWh = 1 ES coin (2 divisibility) and fixed with local electricity tariff.
- Energy Service Companies (ESCOs) to supply the project data from the local energy management system (EMS) and generate ES coins for bill settlement through a smart contract allocation of ES coin automatically. The smart contract will be defined as the percentage allocations of ES coins and only be able updated by a voting process through stakeholders’ e-wallet.
- The project owners required to buy back all ES coins for converting to the carbon savings (with country-specific carbon emission factor) as Certified Carbon Credits (VCS, CDM, or Gold Standard compliant) by independent auditor/verifier. The ES coins purchased will be shown as proof of billing.
- The EPC energy savings bill settlement diagram as below:
- ES Coin can also be used for solar leasing project to help the solar investor to recoup the investment via the energy consumed by the building owner.
- The ES Coin use to represent the electricity generated 1 kWh = 1 ES coin (2 divisibility) and fixed with local electricity tariff.
- The solar leasing bill settlement diagram as below:
¶ Network/Native Token (EPCC)
- BESC network is consists of multiple computer server nodes (cloud-based virtual servers), namely for Peer nodes (these nodes are the backbone of the network and create new blocks.) and API nodes (these nodes store data in a Mongo database for easier querying). The server nodes are used for handling the transaction validation and store the ledger data.
- EPCC (Network/native token) – To be paid for network transactions fee transacted during EPC shared savings /solar leasing bill settlement.
- The EPCC tokens will be required for each wallet account holder (i.e. project owner, ESCO, auditor, or any wallet stakeholder) to make a transfer of token transaction. Each transaction made will require an EPCC as a fee.
- The total maximum supply of the EPCC will be 9 billion.
- There is a portion of 25% (5 billion) of the total EPCC for the sustainable fund (to be used for API nodes in smart contract’s ES coins allocation).
- Each node (Node Fund) will have allocated 2.5 million EPCC, a maximum of 1000 nodes.
- Each wallet account holder (Member Fund) should have pre-allocated 25,000 EPCC when they are onboard as a consortium member.
- Every node account will require a few of EPCC as the stake (based on proof of stake - PoS) to entitle the harvesting rewards (more details available soon).
- The remaining EPCC will be used as a reserve fund for any contingency usage.
¶ Green Attributes Token (GAT)
- Green Attributes means any credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the Facility, and its displacement of conventional energy generation. Green Attributes include but are not limited to Renewable Energy Credits, as well as: (1) any avoided emissions of pollutants to the air, sailor water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO), and other pollutants; (2) any avoided emissions of carbon dioxide (C02), methane (CH4) nitrous oxide, hydrofluoric carbons, perfluoro carbons, sulfur hexafluoride, and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere;
- Green Attributes Token (GAT) – To represent the Certified Carbon Credit or Renewable Energy Certificate. The token is non-fungible (NFT) with each unique cert id. The token cannot be resold. With 1 carbon credit (1000 kg/1 ton of carbon emission saved)/ 1 megawatt-hour (MWh) = 1 GAT (4 divisibility) and token value varied from the market carbon pricing.
- The GAT for carbon credit then will be verified and certified as Certified Emission Reductions (CERs) unit which shall be in line with the Gold Standard Claims Guideline, VERRA Verified Carbon Standard (VCS) or UNFCCC rules for Clean Development Mechanism (CDM) or any recognized national standard like MGTC. The GAT is a token that is generated based on a country-specific calculation of the amount of CO2 abated generated from each unit of energy savings.
- GAT can be traded using cryptocurrency (XPX/ETH/BTC etc.) or fiat currencies.
¶ BESC Modules
The BESC platform is consists of 2 components namely BESC portal and Green Attribute Marketplace.
¶ BESC Portal
The BESC portal allow the consortium members to access the portal functionalities according to their role:- Project Owner, Energy Service Company (ESCO)/Project Developer, Carbon Auditor/Accessor, and Registrar.
Project Owner functions:
- Create project
- Create contract
- Reporting
- Consortium Voting
- Manage Devices - Meter
- E-wallet - savings
ESCO/Project Developer functions:
- Manage project
- Manage contract
- Reporting
- Consortium Voting
- Manage Devices - Meter
- E-wallet - savings
Carbon Auditor/Accessor functions:
- Reporting
- Consortium Voting
- View Devices - Meter Calibration
- E-wallet - savings
¶ GREEN ATTRIBUTE MARKETPLACE (GAM)
BESC network helps the project owners sell their Certified Emission Reductions (CERs) a.k.a carbon credits or Renewable Energy Certificates (RECs) with notarizing and tokenize the certificates into Green Attribute Tokens (GATs) to facilitate trading in a Green Attribute Marketplace (GAM). The marketplace operates on an English Auction system, where buyers are allowed to bid for various quantity of the available carbon credits within a time frame. Once the bid session ends, the highest bidder will get the quantity of the carbon credits for the price of the bid. Once the settlement is completed, the quantity of carbon credit will be retired and no longer be able to re-sell by the highest bidder, making the bidder the final owner (for offsetting). Remaining carbon credits that are not sold will be put in a new bid session until all credits are sold. If a certificate of carbon credits has never been sold, the Project Owner has the right to claim back the certificate and the carbon credits will no longer be available for bid. The buyers can purchase the certificate either in full or partially based on the GAT.
¶ Disclaimer
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Disclaimer
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