Restart Energy Democracy (RED) is designed and backed by a Romanian energy company, which is the fastest growing private energy provider in the country (with a customer base of 30,000 users) and is estimated to have clocked a turnover of around US$ 20 million in 2017. The fact that the company behind this ICO is already a revenue generating company is the biggest advantage one could have while investing in this.
Understanding the concept behind RED
Traditionally, the energy sector has been plagued with intermediaries at various stages of distribution, which imply high costs to the end users. This is precisely what the new RED platform addresses – it connects energy producers with customers in a P2P market arrangement, making the entire distribution process more decentralized. A platform built on blockchain also ensures that various layers of costs are removed. Tentative estimates show that this would give almost 30% higher rates to producers, while reducing the costs by a similar amount for the consumers. Moreover, the fact that energy consumption is expected to double until 2030 gives a sustainability factor to the business model. Scalability also comes from its unique business model wherein a seller could become a franchise holder by holding greater than 10,000 tokens. Moreover, the company also aims to bring in smart meters and software to better predict the supply-demand dynamics offering a valuable preposition to sellers.
But how does it work?
The basic concept is to buy energy using the company’s MWAT (megawatt) tokens, which one can buy during the ICO stage or buy them later (but at possibly a higher price). The ICO was opened on January 15th 2018 and will end on February 12th 2018. The total supply of tokens is estimated to be 500 million with each valued at 0.1 USD with a hard cap of US$ 30 million. Till date, 87.5% of all the tokens have been sold and the company has already raised around US$ 26.25 million. While 20% of the raised revenues will be used for business consolidation purpose in Romania, the rest will be used for platform development and expansion across geographies.
In simple terms, each token will act like a virtual store of energy with each token now is estimated to be equivalent of 0.11kWh and is likely to be estimated to hold 13,13kWh by 2023. Additionally, the tokens will also be used to give access to the platform, RED franchises and distributing incomes from the sale of energy contracts.
Restart Energy: In Short
What about the existing players?
Admittedly, there does exist similar energy solution providers in the market for instance WePower, Power Ledger and SunContract but the completive advantage that Restart energy has over these is that the company is a Licensed EU energy provider with a strong customer base and revenues. That said, there are some risks that investors need to be aware of while investing in the ICO – 1) the expansion in the energy market especially across geographies is very contingent upon regulatory approvals and 2) irregularities issues against its chairman of the board of advisors - George Popescu.
Restart Energy: Achievement