Most Undervalued ALTCOIN!? This Will be Top 10 SOON!!

The Energy Industry, Electricity…with its 
assets & even built in financial markets, is a   multi billion dollar industry, a big one, that the 
average citizen has never been able to partake in.   The Energy club is a small one, that only a 
small select players get to play in. Especially   in the United States, about 100 Front running 
firms, making up all the revenues in the US. Why is this? Well it comes down 
to 1 thing. Storage. Electricity,   since its birth… is an asset that when 
produced, it needed to be consumed instantly.   No one could figure out how to store it 
long term in large quantities. Even today,   across a large majority of the United 
States, at the wholesale level,   electricity cannot be stored, so demand and 
supply must constantly be balanced in real-time. I’m sure you guys have heard about the GRID!? 
The Electricity Grid. The interconnected system   that delivers that sweet power to your home, 
lighting up the skies across the globe.   Well here in the US, these Grids are 
broken down into 3 main regions…the   western interconnection, the eastern 
interconnection & the Texas interconnection.

Now, remember electric energy is 
an asset, that majority today still   can’t be stored across the grids. It goes 
from generator, to the transmission lines,   to the end user..home or business. But 
in reality, there is another person   in between. The middle man, the reseller 
of energy to homes and businesses. This is when the energy markets come into play. 
The trading of energy with resellers. Which   breaks down the 3 grids, into 9 main wholesale 
energy markets. California ISO, No-RTO West (aka   no official regional market), Southern Power 
Pool, Electric Reliability Council of Texas,   Midcontinent ISO, NON-RTO Southeast, THE PJM 
Interconnection, New York ISO & ISO New England.

9 wholesale markets, across the United 
states, for the most important energy   asset. And remember I said only a small select 
players get to play, only about 100 front running   firms doing all the business. The same players, 
controlling the energy for decades and decades,   allowing monopolies to form, infrastructure 
to suffer, and prices to rise. The Energy markets are primed for 
change, and if you don’t see it coming,   let me try and help you see the change that is 
coming. Like I said, electricity couldn’t be   stored in the past, which has allowed 
this market design to take shape. Only the players who could provide 
the costly infrastructure could play,   for generation and transfer. Those who could 
adhere to the regulations for real time balancing   of supply and demand. Not many players 
can do it. But this real time balancing   leads to much different markets than regular 
capital markets, investors are used too.. Energy markets are open, the trading 
of electricity.

But you can consider   it restricted-open. Real time balancing 
creates its own systems, and technicalities   that have kept less-experienced traders 
away. Also potential participants must   show financial strength as well as 
technical knowledge to be granted access. You need to be an accredited investor, 
and you need to pass a test to be   granted access to these markets, which 
are on the BIG regulated exchanges,   like ICE who has 165 futures contracts in 
the US, and 9 options and over in Europe,   10 futures and 3 options. The average citizen does 
not get to play with Energy.

It’s too complex! Chico’s opinion…This needs broken 
up, and it needs broken up now.   Per example…lets just go to another 
place where these trader’s get to play.   CME….They even have an online test, for those 
looking to dip their toes into the water of   electricity and energy trading. The question at 
the bottom is “What are the key characteristics   of electricity that differentiates it from other 
commodities like crude oil or natural gas?” Answers are:
1. It is completely   interchangeable. 1 megawatt hour (MWh) 
electricity produced from Coal or Natural Gas   contains the exactly same amount of energy
2. It must be produced and used simultaneously.   Electricity storage is still 
prohibitively expensive currently.  3. Supply must meet demand 
exactly in the power grid.  4. All of the above The correct answer is…all of the 
above.

See even today, CME the exchange,   the regulators, and overall consensus is, 
electricity storage is still prohibitively   expensive. You might be right at this 
sliver in time within certain sectors   of the United States, but you are totally 
wrong in scope of things across the globe. Electricity storage is here, it's not 
expensive, & it’s going to change the   energy game. Even how it’s traded. 
We are in the initial stages,   but I’m living in the state, California where 
batteries are ground floor for the revolution.   From this map, we can see California has 215 
plus battery storage projects going on within it. Next biggest is Texas, Illinois, New York, and 
Penssylvania which each have between 15-30.   These States are the hotbeds for the 
coming energy transition and revolution.   And guess what Just broke 
ground last year in California?   A Batterey storage project in collaboration 
between two entities…PG&E & Tesla.   Once up and fully running, it will be the 
largest utility owned battery storage system   in the world.

They expected it to be completed and 
operational by the second quarter of this year. And this isn’t the first Tesla, 
PG&E collaboration…in 2017,   PG&E's first lithium ion storage system 
was deployed with Tesla Powerpacks,   which is fully operational today 
near Sacramento California. This is called Grid Modernization, an it’s 
happening you just need to know where to look.   Utility Dive put out a good blog titled “PG&E 
may answer the billion dollar grid modernization   question”…the article says “There is a lot of 
money at stake with Grid Modernization.

The PG&E   framework has two objectives: identify investments 
needed "to integrate the growing number of DERs   (distributed energy resources) and determine 
how customer-owned DERs should be valued” Grid Innovation with PG&E that has been their 
focus, so we should probably look to who was   leading that at PG&E. September 2017, Kevin 
Johnson who worked at PG&E’s grid innovation   department posted this blog on the meetings of the 
minds website “Where Smart Cities and Utilities   Overlap” and in it he said “PG&E is taking a 
step towards smart platform enablement with the   recent launch of a Distributed Energy Resources 
Management System (DERMS) pilot, in partnership   with GE, Tesla, and Green Charge Networks.

Within 
that pilot, customer solar smart inverters and   storage batteries take signals from the grid 
management system to “bid” in needed services,   and then remotely and automatically execute on 
those services to the grid once bids are accepted. DERMs was a pilot program, based on distributed 
energy resources with Tesla Involved.   Kevin Johnson knew oh so much about this 
in 2017. Going to Kevin J’s Linked’n today,   he was promoted from the grid innovation 
department, and as of that year 2017,   He is a Principal in PG&E’s 
Corporate Strategy Integration team,   where he is focused on identifying, supporting, 
and tracking strategically aligned innovation…. Kevin is important at PG&E, a principal 
person with an eye for innovation.   A little over a year after getting this 
role, what did Kevin do? He offered insight,   perspective and contribution to the energy web 
whitepaper in 2018. As we can see they thank Kevin   Johnson of PG&E for just that!! And then once 
again with the updated version in June of 2019 Now, I want to go back to the DERMs pilot 
program.

It evolved and in January of 2019,   the latest update was put out by PG&E from 
the Grid Integration and Innovation department   Kevin used to lead. Large report with many good 
fiding but this was one of the key takeaways,   and the last update from PG&E regarding their 
distributed energy resources management system   DERMS was this “A comprehensive DERMS is still not 
readily available as of early 2019”…They said   “PG&E determined it is still too early to invest 
in a comprehensive DERMS based on the experience   through this demonstration, the expected near-term 
impacts of DERs on the system, and the state of   the industry. While DERMS vendors exhibited 
capabilities in certain aspects of a DERMS,   there was no vendor capable of the comprehensive 
DERMS system PG&E envisions at this time. Energy Web wasn’t involved with the last 
pilot, why? Well for one..the blockchain   wasn’t live in January of 2019, it didn’t go 
live until June of that year.

And now today,   Energy Web has of course a live blockchain, but 
also the d3a, decentralized autonomous area agent.   This is the comprehensive DERMs 
PG&E was looking for in early 2019.   The D3A optimizes the operation of each 
grid device through a modelling tool,   allowing each hierarchy to be managed by its 
representative agent. Thus it can be used as   a tool to configure an optimal market design 
and make investment and management decisions. This delivers an enhanced understanding of the 
smart grid mechanics, facilitating adoption   of bottom up markets & decentralized energy 
management like never before. And the beauty?   Simulations!! Simulation environments 
can be run, analyzed, configured   and re-configured for optimization before it 
is deployed to the modern transactive GRID!!
  So, the DERMS platform has alluded PG&E and 
Tesla for some time. They couldn’t find it as of   early 2019. Thus PG&E decided to take a chance on 
energy web, blockchain, and the d3a.

They joined   the alliance, becoming an affiliate member, 
and Kevin, principal of corporate innovation   is making sure they are contributing 
their thoughts to the whitepapers?? You make the connections and 
what the next DERMS pilot   will consist of. Cheers I’ll see you next time!.

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