SunContract Achieves 5,000+ Registered Users

English translation of released media article

For Slovenian version: click here.

“According to the latest data, more than 5000 users are currently registered on the SunContract electricity marketplace, which is the first and so far the only electricity marketplace in Slovenia — launched in April 2018.

Residential, commercial and industrial energy is bought and sold on the platform. Last year, they closed a one million euro deal from launching in April, to the end of the year, and this year, according to Gregor Novak, SunContract’s CEO, the trend is even better.

Why is SunContract’s electricity market interesting and different from the classic electricity supply?

First of all, it’s important to point out that the marketplace deals exclusively with electricity produced from renewable energy sources, which is increasingly important for many customers.

“The buyer can even specify the exact source of renewables, as electricity comes from the sun, water, wind and cogeneration.”

Another important difference is that customers can buy electricity at a lower price on the SunContract Marketplace

The buyer may enter into several agreements with producers at a price lower than their fixed contract price. However, he does not pay a commission, since there is no intermediary between him and the seller. The consumer can make a P2P agreement with his/her chosen producer for 1 up to 24 months. He/she can also verify that these arrangements have been realised at the price at which they were agreed-upon, thanks to the blockchain technology used on the platform.

How do you become a buyer in the electricity market?

In order to trade in the marketplace, users need to first register on the platform’s website or through the free mobile application, where we submit a request for switching supplier and the last payment order for electricity. The change of supplier is arranged at SONCE energija, a local partner of SunContract in Slovenia.

After registration, the buyer enters into a contract with the company for the supply of electricity, which specifies the price per unit tariff and the duration of the consumption. “The buyer also has to decide whether to pay for his electricity in EUR or SNC tokens. SNC tokens are the behind-the-scenes mode of transacting since the platform is supported by blockchain technology that does not support classic fiat currencies,” Novak explained.

The value of the SNC token is changing daily, according to the latest figures it was $ 0.0158, and it is necessary to buy 1000 SNCs, so a little more than $15 should be invested in your account in order to begin trading. The marketplace works in such a way that despite the buyer having signed a contract, they can still set buying orders in the platform with the platform for producers with lower bids to accept. If accepted, a transaction between the two parties is conducted. The buyer can also accept the already offered or published price offers of producers on the marketplace.

The credibility of these arrangements is validated by blockchain technology.

By concluding P2P arrangements on the marketplace, consumers can optimise their cost of electricity. How much the buyer lowers the price depends on the supply and demand on the marketplace. Since the launch of the marketplace in Slovenia — European Union, the project’s data shows that most buyers have managed to reduce the electricity prices by five to 10 percent, while some have managed to reduce it by up to 20 percent, says SunContract CEO.

How does a green electricity producer get involved in the market?

Everyone who produces green electricity, whether they produce it for themselves or for the market, can participate in the marketplace. Therefore, owners of self-contained solar power plants, which have excess electricity at the end of the calendar year, can also join the SunContract marketplace.

Green electricity producers producing electricity for the marketplace also enter a contract agreement with the platform platform for a fixed electricity price. This guarantees the producer that he will be able to sell the entire amount of electricity. The producer also decides whether to trade in Euros or SNCs.

The agreed price can be raised and traded in the market in several ways:

Trading with a known buyer — If their loved one agrees to offer a higher price order than the producer’s contract price, a sale can be entered between the two parties. The producer sends a quote only to this specific buyer through the platform by entering his web address and price offer.

— If their loved one agrees to offer a higher price order than the producer’s contract price, a sale can be entered between the two parties. The producer sends a quote only to this specific buyer through the platform by entering his web address and price offer. Posting a selling order on the marketplace — Producers can post a selling order on the marketplace so that it can be accepted by any of the buyers in the marketplace (we’re talking P2P deals with an unknown buyer here).

— Producers can post a selling order on the marketplace so that it can be accepted by any of the buyers in the marketplace (we’re talking P2P deals with an unknown buyer here). Accepts the customer’s offer — he can also accept any of the existing customer’s buying offers on the marketplace to conclude an individual or P2P agreement.

Monthly P2P deals are concluded on the marketplace for up to one or two years in advance. And if a customer manages to sell most of their production in advance, then they no longer need to keep up with the market. “Explains Gregor Novak, adding: “If he really doesn’t have time, he can also activate the electricity management service. In this case, the marketplace is actively monitored by a professional electricity trader and concludes P2P agreements on the producer’s behalf. Activation of the service is free of charge.”