PYR Energy POC Document Outline

1. Introduction:

• The Purpose of the POC is to understand not only the feasibility of PYR Energy technically, but also the value creation to the stakeholders. In other words, to demonstrate that local peer to peer green energy sales, improves the use of lower cost green energy. Providing an economic model that benefits both green energy producers and end consumers. In doing so, the platform will be supporting the environment by shifting consumers from fossil fuels for heat and energy to clean, renewable energy. The POC will be revenue generating.
• Objectives
  • Prove the demand for peer to peer green energy sales
  • Show the increased savings in energy costs
  • Test the ease of use of the application
  • Confirm the technical feasibility of green energy sales
  • Understand the regulatory, billing and infrastructure requirements
• Outcomes
  • 20 green energy producers and 10 green energy consumers
  • Documented energy savings >20% from grid prices
  • Application engagement and task to success 70%.
  • Meter reading, energy flows and billing working consistently
  • Identify what is allowed, what requires clarification and needs for scaling

2. Business Context

• Problem Statement Despite the growth of rooftop solar, most excess renewable energy is sold to the grid at low rates, while the building next door is paying high retail prices for non renewable energy. There is currently no simple, trusted way for communities to share green energy, save money and reduce our reliance on fossil fuels for heat, cooling and energy.
• Current Challenges Energy sales is a highly regulated industry, with large, legacy infrastructure, not equipped for the rise in solar and unpredictable energy creation. Integrating a new technical solution into this highly complex grid provider system will require a deep technical understanding, ensuring compliance with the grid and regulatory requirements.
• Consumer Sentiment Although solar is growing in adoption, it requires much thought and consideration, plus the financial barrier. PYR Energy removes the financial barrier, but will face challenges in building trust. Energy consumers in Switzerland have not yet had the experience of switching between energy providers, much the way we do today with our cellular plans. This will require some education and a need to build trust to try a different provider that is not the local energy provider.
• Competitive Landscape In Switzerland, it is not an established business model know to energy consumers or producers to sell energy peer to peer. Although, regulatory has advance and been voted on, the application has not been taken up. In France, Enercoop provides communities access to 100% solar energy. In Switzerland, Beesolar.ch is helping customers to buy/sell excess solar energy. Further analysis should be done to better understand other solutions and providers doing peer to peer solar energy sales.
• Proposed Solution Overview A peer to peer energy platform allowing neighbours to buy and sell locally produced green energy. Simple and easy to use platform, making clean energy local, affordable and accessible to everyone.
• Stakeholders Involved:
  • Green Energy Producers - Homeowners, building owners with solar panels. Early adopters willing to test a new revenue model
  • Green Energy Consumers - Individual houses, apartments or small business looking to reduce electricity costs and lower carbon emissions. They must trust the system will work and see tangible savings
  • Grid Operators - Switzerland has 650 DSO for which the electricity must flow through and are essential for balancing and regulatory compliance.
  • Regulatory - The rules by which peer to peer energy sales are allowed in Switzerland. Adhering to the LEne and LApEI as well as the Swiss Federal Office of Energy and the Electric Commission
  • Municipalities - Will need to be informed of the pilot and can help with community engagement and providing legitimacy. Plus if the municipality has a sustainability goal the solution helps to achieve this goal.
  • Technology Providers The solution will need to integrate seamlessly with smart meters, EMS, billing, grid metering and any other flows of data not provided by the company.
  • Legal Legal counsel versed in the Swiss Laws mentioned above and any other energy and consumer protection laws and liability concerns to be addressed

3. Technical Scope

Goal:  To provide the minimum amount of development possible to test the demand, technical and regulatory scope.

• Technology Stack
  • Simple front end, showing account holder information, usage, carbon removal, savings and ability to accept payment.
• System Architecture Overview
  • What APIs and data access is need to connect to smart meters and EMSs?