Today we are reviewing Restart Energy Democracy (RED). RED successfully completed its token sale within 2 minutes after the official start of the sale on Jan 23. Although the ICO has ended, we find this project quite interesting and just can’t leave it unattended. And here is why.
What is RED
RED is a blockchain based trading platform that makes it possible for energy consumers and producers to send and receive energy worldwide in a transparent, decentralized manner.
It creates added value for all the parties by employing blockchain to remove several layers of costs. As a result, producers will be able to sell their energy at a price 30% higher compared to the wholesale price to high numbers of low-volume retail customers who will then pay 30% less, using existing grid infrastructure and the RED platform.
The tokenized energy traded on the platform can be physically delivered at local rates in countries with deregulated energy markets where Restart Energy will be present directly or through franchise.
What’s in There
Strong background. The platform is designed and backed by the Romanian based energy company, the fastest growing private energy and gas provider in the EU. Restart Energy has secured $20 million annual revenue, 27,000 households and more than 3,000 SME’s and multinational corporations.
Partners & customers. An existing partnerships list and a customer base are both quite impressive. Some of the partners include: EuroGSM (Orange Telecom Dealer), InterBroker, GRS, AMVV. Besides strong partners, their customer base is a little over 30,000 clients.
MWAT token is backed by real energy. Each token holds the equivalent of 0.11kWh and acts like a virtual battery that stores kWh which you can to spend or sell.
Ambitious plan. The business plan assumes the expansion of RED platform to over 45 countries, opening over 14,000 franchises and attracting over 9 million customers by 2023. The estimated revenue is $3.78 billion.
Franchise opportunity. RED has developed the first energy retail franchise and already operates over 300 franchises in Romania (not on the blockchain yet). Franchise allows MWAT token holders to develop their own power retail business and earn revenues by selling energy to retail households and business consumers.
Although the overall idea sounds quite promising, there are some risks that need to be mentioned.
The company predicts a sixfold revenue increase in the coming year, although it plans to enter new markets only in the fourth quarter of 2018.
It should be said that Restart Energy is very optimistic in its predictions. The company believes the demand for the electrical energy supply will double in 2030 compared to 2016, whereas may other sources agree on a 30 % increase.
Significant risks also lie in the possible obstacles on the part of regulators in different countries and in difficulties obtaining necessary licenses. Besides, the liberalization of the markets may not go as fast as the project leaders expect. The biggest energy consumers in the world are China, USA and India, and we can observe only partial elements of liberalization in their energy industries. For instance, in the US only a few states have made some steps towards the liberalization of their energy markets.
All official info about RED is available through: