Electraseed Fund for Digital Energy Assets Accelerate clean energy access at digital pace and scale.
COMPANY NAME: Freeelio UG APPLICANT NAME: Sebnem Rusitschka TEAM COMPOSITION: People from one or two legal entities WEBSITE: https://www.freeel.io/offer/electraseed-fund PROJECT SECTOR: [“Economy”,“Energy & sustainability”,“Open Innovation”] CORE TECHNOLOGIES: [“Blockchain technologies”,“Distributed ledger technologies”,“Peer to peer technologies”,“Artificial intelligence”,“Internet of things”]
PROJECT BRIEF DESCRIPTION
Freeelio develops the Electraseed Fund: a platform for (re-) finance of clean energy projects. The platform allows investments in digital representation of value streams stemming from clean energy projects, what we refer to as Digital Energy Assets (DEA). In other words, a match making platform for investments & Digital Energy Assets. The Electraseed Fund is the first commercial patented application based upon the open source Digital Energy Asset framework, which should reduces market entrance barriers for new participants (such as prosumers).
The goal of the Electraseed Fund is to accelerate clean energy access.The ambition is to reduce cost of capital for social entrepreneurs bringing clean energy in developing countries, enable digital configuration of complex contracts, provide attractive investment opportunities into clean energy assets with high risk transparency & well-balanced economic, social & environmental ROI. The Electraseed Fund should reduce asset management costs and enable investors to simple monitor and report financial assets performance and trace the created investment impact.
Suitable partners for the Electraseed Fund pilot pool have already been selected. The pilot pool consists out of four projects: a solar microgrid in Bangladesh, solar mini grid in Mali, greenfield solar in Germany & tenant solar in Germany.
Clean Energy Access Markets are the key target markets of the Electraseed Fund. These markets show clear political & commercial ambitions to fulfill electricity demand through clean energy. (For now, the focus lies upon the clean electricity and not the transport nor heating&cooling sector.)
The current annual investment volumes for clean electricity access were estimated to be 30.2 $ bn in 2016 for 20 high-impact countries, whereas overall global investments in clean energy were estimated to be $332.1 bn in 2018. However, investments in fossil fuel are still more than double, with approx. $825 bn in 2018. The Electraseed Fund aims to contribute to closing the climate finance gap of $ 1-4 trill per year.
Investments in environmental, social, governance (ESG) compliant assets are sharply increasing. Today, global assets under management already account for 88 $ trillion. Investors are in particular attracted by clean energy projects, as the competitiveness to conventional technologies is rising, due to continuous falling investments costs.
The Electraseed Fund aims to play a key role in these trends, by using data-driven methods to (re)finance proven clean energy projects. EF aims to support the growth of energy investments under environmental, social and governance principles - which are currently (2017) around $22 trillion assets under management.
The current target markets are in particular energy off-grid in developing (424 mil. households, $922 mil.), renewable energy communities in developed countries (110 mil. hh) and Small Islands Developing States ($ 745 mil.). The target clients include cleantech project developers, asset owners & operators, energy users, impact investors & development organisations.
**BUSINESS MODEL ** Electraseed Fund “Pilot Pool” is a dynamic modelled which is patented. The system dynamics model additionally uses real system data, that is accessible through free and open source software (FOSS) framework Digital Energy Asset.
Each ecosystem member of the Digital Energy Assets framework (e.g. Freeelio, EF) is built around a smart contract that does the actual coordination; the incentives of the organizations are aligned with the other resource contributors in the community (subscribers, as in users and impact investors; as well as asset owner/operators; other open source developers that co-develop the standard smart contracts, R&D partners, audit & security partners etc.) to the network of Digital Energy Asset standard worldwide by means of revenue share. The individual revenue stream of the Electraseed Fund stem from : Platform Registration → free of charge
Platform onboarding → one-time payment
Management fee → per investment (3%)
Dashboard access → freemium (e.g. premium service ESG reporting, update of investment with a liquidity premium)
Asset monitoring services
→ Subscription fee
Autonomos customizable Investment structure
→ pay per use
→ one-time payment & pay per use
→ one-time payment
**TEAM EXPERIENCE ** Sebnem worked at Siemens on Decentralized Energy Platforms since 2008, managing intl., multi-disciplinary projects. She founded Freeelio as an open R&D collective in 2016 and is a founding member of the Bundesblock since 2017. Armin joined Freeelio after an internship at UNIDO. He holds a M.Sc. in Energy Systems (2018) and gathered experiences with innovative sustainable energy solutions since 2012. He is in charge of Electraseed Fund (EF) production. Marie brings 12 years of corporate law and management experience in Energy Exchange Sector. She is a French Lawyer counselling EF wrt. the new PACTE Law for digital asset service providers. Joaquim joined in 2018 with his 15 years as SW Dev & Architecture in FinTech & Blockchain. Julian is a SW Engineer who started his own SW business at the age of 14. Torsten, Kalle, and Alain are executive producers of EF, w/ each over 20 yrs of entrepreneurship in FinTech, Solar Sector & Sustainability respectively.
**FUNDING NEEDS ** We will implement an MVP “Impact Investor Dashboard” that outlines the Digital Energy Asset (DEA) standard and its use in the Electraseed Fund pilot pool of clean energy projects. We will integrate Secure Elements of Riddle & Code with physical energy assets: smart mini-, microgrid, solar park, and solar social housing. We will design a Ricardian Contract Logic for DEA configurations and prototype in Zenroom. Design and prototype the UX for impact investors and asset owner/operators.
**STRATEGY AND SCALABILITY ** For off-grid energy systems in developing countries, the EF foremost relies on the benefits of financial pooling with cleantech asset in developed countries, to create equitable funding conditions off-grid regions. Thus, de-risking investments through enhanced transparency and aggregation of small-scale assets. In return, cleantech assets in developing countries help to attract impact investors in the target markets in developed countries by offering a high social & environmental return. For the scaling of renewable energy communities in developed countries, EF concentrates on Europe due to the large existing relevance & support for energy cooperatives. The EU Renewable Energy Directive II empowers decentralized, small-scale energy asset owners to actively participate in the market. EF focuses on these new market participants to achieve scale. Based on an open source framework, clean energy developers can autonomously digitize the value streams of their projects. The vast network of cleantech asset partners, executive producers, promoters, R&D community, Bundesblock, INATBA is our channel.