Sgouridis 2009 TED talk Energy Credits

8/7/2019 Sgouridis 2009 TED talk Energy Credits

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1

ERGOs(Re)architecting the financial system for a post-carbon economy

Sgouris Sgouridis

in collaboration with Scott Kennedy

The Pilot January 28, 2010

Technology Entertainment Design


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Moneyis

abeliefaboutabelief

generatedbydebtinafractionalreservebankingsystem

furtherexpandedby(unregulated)securitizationofthedebt


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The1970s

0

0.5

1

1.5

2

2.5

0

1

2

3

4

5

6

1979January

1979February

1979Marc

h

1979Apr

il

1979Ma

y

1979Jun

e

1979July

1979August

1979September

1979October

1979November

1979December

1980January

1980February

1980Marc

h

1980Apr

il

1980Ma

y

1980Jun

e

1980July

1980August

1980September

1980October

1980November

1980December

1981January

1981February

1981Marc

h

1981Apr

il

1981Ma

y

1981Jun

e

1981July

1981August

1981September

1981October

1981November

1981December

1982January

USGDP&O

ilPrice

(NormalizedN

ominal)

Data sources: Bureau of Economic Analysis & Energy Information Administration

Oil Price

GDP


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The2000s

USGDP&O

ilPrice

(NormalizedN

ominal)

9.2

9.3

9.4

9.5

9.6

9.7

9.8

9.9

10

10.1

0

2

4

6

8

10

12

14

16

18

20

2007January

2007February

2007March

2007April

2007May

2007June

2007July

2007August

2007September

2007October

2007November

2007December

2008January

2008February

2008March

2008April

2008May

2008June

2008July

2008August

2008September

2008October

2008November

2008December

2009January

2009February

2009March

2009April

2009May

2009June

2009July

Data sources: Bureau of Economic Analysis & Energy Information Administration

Oil Price

GDP


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Tippingthehouseofcards

Electricitybill.Waterbill.

Taxifare.

Metroticket.

Gasprice.

Foodprice.Hotelrate.

Mortgagepayment.

Aggregatepricingofaserviceresultsinembedding:

energyrequirements(hidden) externalities(unpricedandunknown=doublyhidden)

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2000s:firstcollisionofrealandimaginaryeconomies

notyetcriticalasfossilwealthremainsaccessible

but

whatifacommunitydesiredtorelyonrenewableenergy

and

maintainstandardsofliving?


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AutonomousGrid

Unlimitedfuel

AutonomousGrid

Fuel/resourcelimits

InterconnectedGrid

Unlimitedfuel

InterconnectedGrid

Fuel/resourcelimits

Fossilfueldominant

capacity

limited

Weak Strong

Weak

Strong

Energy

Constraints

Capa

city

Const

raints

ConnectedSustainable

City

Fossilfueldominant

excesscapacity

Renewable Energy Targets

AutonomousSustainable

City

Hydro/Nuclear

dominant

VariaonsofEnergySystems

EnergyIndepen

denceTargets


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SustainableCityNeeds

NetZeroCarbonenergybalance100%renewable

Strongenergyconstraint+peakloadmanagement Energyaccounting:transparentandauditable

Demandmanagement

Incentivesforefficientenergyuse Mechanismforinformeddecisionsonenergyuse Simplicity,flexibility,commonality

Residentenergy/environmentawareness

Innovationandreplicability

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Commitmenttoastrongenergyconstraintcouldleadto

aformoftechnocraticdictatorship

canwemaintain

freedomofaction,

promoteequality,and

meetresourceconstraints?


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ergoErgo

introducingenergyasaparallelcurrency


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Ergo:EnergyCreditsSystemConcept

Ergo:Unitofenergy-basedcomplementarycurrency i.e.withafiatcurrencyexchange

Ergosare:

Issuedproportionallytoenergyoutput

Allocatedbyafacilitatingauthoritytosubscribers Surrenderedforenergyportionofservices Tradedinaspotmarket

AnErgoEnergyCredit(EEC)systemmakesenergytangibleandfungible.

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ErgoDefinionTangibleEnergy

1Ergo=1EnergyUnit(e.g.kWh)

ServiceshaveanErgopricecomponentreflectingtheirtruedirectandindirectenergyneeds

Ergosrepresentafiniteenergyresourcethatcanbeallocatedequitably

Ergoshaveanexpirationdate

Ergoscannotbehoardedspeculativelybutare

surrenderedforaservicetransaction

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ErgoDefinionFungibleEnergy

ErgoshaveasubscriptionfeeForgenerationcostrecovery

Ergosaretradedasymmetricallyandhaveaspotpricein$

Revenueneutral;externalitypricing

AconservingusercansellexcessErgosatthespotprice

Auserabovebudgetcanbuyandimmediatelysurrender

Ergosatthespotpriceinexchangeforadesiredservice

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ProposedIni)alErgoCoverage

ErgoUsers:Residents

Businesses

Visitors

Cityauthorities

ServiceCoverage:Electricity

ClimateControl-HVAC

Water&hotwater

Transportation

Wastedisposal

Commonutilities

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ErgoIssuance

ErgosissuedcentrallybyCityEnergyAdministration(CEA)reflectenergygenerationbudget

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ErgoMonthlyBudget

EnergyForecast

BudgetCarryOver

ForwardCredits+ +=

Energy

Forecast

ElectricityGeneration

Forecast

Biomass&Thermal

GenerationForecast

+Adjustment

Factorx=


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ErgoAllocaon

Ergosareallocatedtosubscribersbasedonaflatsubscriptionfeeandequitableallocation(otheroptionsexist)

Commercial user allocation determined on case by case and by benchmarking

ErgoMonthlyBudget

ResidentialUsers

CommercialUsers

CommonUtility+ +=

VisitorReserve

CEAExports

Pre-allocatedErgos

+ +

+

ErgoperUser

ResidentialUserBudget

NumberofUsers/=


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ErgoPricing

Subscriptionfee Costrecovery,tier-pricing,subsidizedetc.

Ergospotprice

Updatedregularly BasedonthecomparisonofCumulativeDemandProfile

vs.theCumulativeSupplyprofile

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ErgoPrice

BaseErgoPrice

ShortTermCumulative

DemandGap

+ f (= )


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ErgoPricingMechanism

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CumulativeDemand Curve

CumulativeSupply Curve

Cumulative Demand Gap


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ErgoMarket

ErgoMarketdiffersfromtraditionalenergymarkets:

1. itisretailbased,

2. userscannotspeculativelytradeErgos,and3. userscannothoardErgosduetoexpiration

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ErgoForwardMarkets TwoTypes:

Pre-allocatedErgos ErgoFutures

Accommodatetemporarycapacityshortfalls-Pre-allocatedErgos UsedasregularErgos Trading-offcarbonoffsetswithPre-allocatedErgos Potentialtofinancefutureincrementalcapacity Supportsenergybalanceaccounting

Financeinvestmentinfuturerenewableenergycapacity-ErgoFutures Fullytradable Activationdate(convertedtoregularErgos) Userpriceriskmanagement Improveddemandforecasting

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UserExperience

21

Seamless&uncomplicated

Relyon:

smart-phonetypedeviceswithaccesstouseraccounts

wirelesscommunicationwithErgo&$debitdevices

Pre-programmedmodesandintuitiveambientindicators


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OfCiesandSpaceships

SoonerthanlaterGeonautsonSpaceshipEarth

willactascitizensofa

SustainableCity

Energyisamostpreciouscommodity

Andonlyitsappreciationwillheraldthetransitiontoasustainableeconomy

Photo credits: Robert & Shana ParkeHarrison, www.geos.ed.ac.uk, www.masdar.ae

Sgouridis 2009 TED talk Energy Credits

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