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:
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.
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.
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.
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.
The BESC platform is consists of 2 components namely BESC portal and Green Attribute Marketplace.
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:
ESCO/Project Developer functions:
Carbon Auditor/Accessor functions:
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.
Copyright © 2022 EPC Blockchain Sdn Bhd. All rights reserved.
The information in this document is provided “as is,” with no warranties whatsoever, including any warranty of merchantability, fitness for any particular purpose, or any warranty otherwise arising out of any proposal, specification, or sample. Furthermore, information provided in this document is preliminary, and may be changed substantially prior to final release. This document is provided for informational purposes only.
EPC Blockchain Sdn Bhd disclaims all liability, including liability for infringement of any proprietary rights, relating to implementation of information presented in this document. EPC Blockchain Sdn Bhd does not warrant or represent that such use will not infringe such rights.