Efforce is a young company, incorporated in 2018, which is trying to solve a very difficult challenge — energy efficiency. As we all know energy consumption is increasing and we can solve the demand problem with energy in two ways: we create more energy supply, ideally by alternative resources or we lower our consumption. Efforce is trying to do the latter by giving access to a complex financial system of the energy efficiency market.
As Efforce has mentioned in their white paper (yup they have their own token, but more on that later) there are lots of constraints on having access to an energy-efficient market:
· High initial costs and the lack of technical knowledge to access complex efficient system
· The lack of trust of those who want to implement the energy efficiency system and those who want to invest in order to obtain alternative returns.
· It is really difficult to evaluate, from a technical standpoint, the actual savings achieved thanks to the efficiency improvement.
· Financial institutions are not able to calculate the returns on the investments made, due to a lack of technical knowledge. Therefore, the pay-back period of the investment is uncertain.
Now you might be a little confused… Doesn’t Efforce just create energy-efficient systems? The answer is no. Efforce has its roots in an Italian company called AitherCO2. They are “a provider of financial services to the world’s environmental and energy markets offering consultancy and trading solutions supporting companies subject to compliance as well as in the voluntary sector.”
Why does this matter? Because some of the founders of Efforce have previous work in AitherCO2. Therefore, they have knowledge of energy efficiency. As mentioned before, Efforce doesn’t create efficient energy systems, but they have created a safe meeting place for those who want to get funds for making systems more efficient and people who want to leverage from energy savings.
Are you having a hard time getting your head around their business model? Well, that is why we are writing this article. Efforce platform is used by 3 players:
· The Contributors: are those who want to purchase the future savings from an improved, more efficient project guaranteed by smart contracts through an auction mechanism on the Efforce platform.
· The Savers: are the owners of energy systems and benefit from energy efficiency improvement of their systems. With these improvements, they will reduce energy consumption.
· Consumers: are those who want to buy energy savings to reduce their electricity bills.
Efforce also regularly mentions in their white paper that at least 1% of all energy savings will be redistributed among all token holders forever.
In their opinion, the main objective of a company interested in efficiency improvement is the optimization of its cash flows. Therefore, they will help connect on one side, companies that are trying to improve their energy efficiency, and on the other side, people interested in purchasing energy savings created by efficiency improvement of the project. This will happen without the use of equity.
The energy savings will be tokenized. This model has been approved by the European regulator and it works as some sort of crowdfunding. The contributors will be rewarded with free energy savings which can be kept, sold, or used for reducing their own energy consumption.
As mentioned before the energy earnings will be tokenized, meaning that for each project their amount of kWh saved by energy efficiency will be converted and accrued into tokens. This is how we will get financial returns from energy saved.
As we can see this business model is very complex to understand and it’s even harder to create the technology that drives this model. Therefore, they had to create the first Energy Performance Smart Contract. It guarantees you that you get energy savings from specific projects. It uses blockchain to increase trust in their community. With these smart contracts, the Contributors can sell energy savings obtained in advance to finance the energy efficiency implementation of their system.
The whole ecosystem is explained the best in the picture bellow
Well, that is complex. No wonder their team is created from highly skilled people: they have experiences in programming, energy, manufacturing, marketing, banking, trading and risk management.
You may be wondering why their token is called WOZX. This is because Steve Wozniak is on their team. He has co-founded Apple with Steve Jobs. At the time of writing WOZX is available on Gate, HBTC, and Bithumb Global exchange. They added WOZX in the span of 20 days, therefore it is highly plausible that the number will increase by the time you read this article. There will be 1,000,000,000 tokens available.
Every project proposed by the Savers will have to go through some sort of KYC. They will have to provide the following information:
· The costs
· The percentage of savings shared with Contributors through the Energy Performance Smart Contract
· The duration of Energy Performance Smart Contract
· The amount of savings created
· The duration of the auction period
· The intrinsic return of the operation
In their white paper they have stated: “Starting from 2026, we want to consolidate our global presence as the main platform bringing together supply and demand in the energy efficiency market.” We really hope they achieve this.
The most interesting thing for me is in this project discovering a new market — energy efficiency. I know there is a need to create things more efficiently, but I had no clue that there is such a vast market.