Better data management will power energy revolution the same way internet boosted our economy

This article was first published on WePower - Medium
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Better data management will drive energy revolution like internet boosted global economy

We founded WePower over three years ago. Throughout that time we have been focused on finding the easiest way how businesses of all sizes could buy energy directly from producers. Two third of global energy is consumed by corporate and industrial users, so helping them move to full sustainability is the easiest way we can make an enormous impact.

Our research and development included technological, commercial and legal aspects of green energy procurement. Now, three years later, we have a robust platform that connects corporate energy buyers, energy retailers and green energy generators to allow easy direct energy procurement for companies of all sizes.

An important part of our research included exploring data management concepts for energy transactions. But why is data, well regulated and technologically well executed data access important for the energy transition?

There are three fundamental trends shaping the energy markets today. First, technology and production costs of green energy are dropping rapidly. Second, energy generation is rapidly decentralizing and, third, the average size of an individual generation unit is dropping. Perhaps counterintuitively from a pure economies of scale perspective, but this is how energy developers are bypassing transmission and distribution grid constraints in the real world. By building more lower sized units instead of large units which are more susceptible to revenue loss from curtailment.

What does it mean? More deals. More counterparties.

It’s clear that we cannot subsidize renewable energy forever. At least not in the western market economies. And subsidies are decreasing everywhere. This means that we have lots of investment looking for returns in a more uncertain market.

On the other hand, we see large global companies making exotic transactions (Power Purchase Agreements or PPAs) directly with generators. In essence, what we are seeing ...

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