Written by Ye Kai
Bitcoin has become very popular recently, overshadowing the popularity of AI chips, but the green electricity behind the two is very low-key. Kai Ge believes that this low-key emerging asset may become one of the basic assets of the financial system in the next 20 years.
The topic of renewable energy (or new energy) has been around for a long time. For example, the global petrochemical energy transformation in the context of carbon emissions, the possible disconnection of the petrodollar anchor, European and American subsidies for local new energy and carbon tax tariffs on Chinese new energy equipment are all key topics surrounding green electricity.
In May, the G7 member states jointly pledged to phase out the existing, unabated coal-fired power generation in the energy system by 2035. This summer, abnormal weather with high temperatures and floods was everywhere. These topics are all closely related to green electricity.
Why is it the combination of "Green Electricity + DePIN + AI"?
RWA is the Tokenization of Real World Assets. What are the underlying assets of real world assets in the future? Undoubtedly, green electricity is one of them.
When discussing hot topics around AI, both Musk and Huang Renxun mentioned that AI computing power consumes a lot of electricity, and the ultimate source of AI computing power may be green electricity energy. In the field of AI, there is an unwritten inequality: green electricity > electricity > computing power > basic model > application. When the world enters the era of AIGC and carbon-based silicon, green electricity is one of the most critical foundations. Future assets and applications will almost all be related to AI, including AI computing power and AIGC, etc.; future energy and power will almost all be related to green electricity, renewable energy (photovoltaic, water, wind, etc.) and hydrogen energy, light storage and charging, and green electricity trading, etc.
As the underlying asset of the future real world, the tokenization of green electricity will inevitably require the support of DePIN and AI. In the combination of "green electricity + DePIN + AI", AI is equivalent to adding a brain to green electricity, while DePIN adds a heart and blood vessels to green electricity. As a basic asset, green electricity is also the source of assets in the new real world and the crypto world. It is naturally scarce and has a head narrative; DePIN is the infrastructure and trusted device network of the green electricity asset ecosystem, realizing the distributed network, digitization, and chain assetization of green electricity; AI is the core that fully highlights the cost reduction and efficiency increase of green electricity, whether it is AI green electricity arbitrage or home computing power center and edge computing.
There can be many changes around the combination of "green electricity + DePIN + AI", and the key depends on the subject and scenario. For example, starting with photovoltaic energy storage, some people do distributed photovoltaic panels and green electricity certificates and carbon indicators; some people do energy storage green blockchain economy, and may only see green REC and carbon indicators supported by distributed ledgers; while some people will see BatteryGPT for battery life cycle management of energy storage, DER demand forecasting and electricity price arbitrage for reverse "power generation" of energy storage, and EnergyGPT for electricity price arbitrage, and some people will see the investment model of integrated standard nodes for photovoltaic storage and charging, as well as VPP virtual grids and P2P green electricity transactions that can be separated by walls. Well, Kai Ge chose Energy "SaaS + AI" centered on energy storage.
Green Power's DePIN Soft Heart
(1) Distributed green energy intelligent storage network
The biggest problem with green electricity is its distributed nature. Except for some large single projects, most of them are small in scale, mainly for self-use and partial consumption, and may not meet the conditions for grid access, etc. However, with the EMS energy management function of energy storage, combined with DePIN technology and AI technology, it can be achieved: "Green electricity + EMS+DePIN+ AI == Green electricity Storage as a Service", that is, green electricity SaaS storage as a service.
In the green electricity photovoltaic storage and charging system, the single-point digitization of hardware equipment such as photovoltaic panel modules, energy storage modules and charging pile modules has reached a very high level. For example, the energy storage module can realize BMS for batteries, EMS for electricity, PCS for converter charging and discharging, and even control of photovoltaic panel inverters and upstream and downstream control of distribution networks. This means that the energy digitization and energy management of single-point modules are 100% realized.
The biggest feature of Soft Heart is that it realizes distributed networking based on the DePIN technology on the basis of the digitization of single-point hardware devices. DePIN's IoT capabilities and supporting chip AI computing capabilities, combined with Green Power's AI Bot or AI Agent, make Green Power truly the infrastructure of distributed networks.
The further development of the soft heart is VPP and P2P. Based on the distributed network infrastructure, VPP can virtually model the DePIN smart box and IoT devices (batteries, inverters or chargers, etc.) that link green electricity to achieve edge device prediction and control, obtain green electricity telemetry data from millions of IoT devices, and control charging and discharging and other actions, thus realizing a distributed green energy storage service and green electricity cloud.
(2) Green Electricity’s “EVM” Ecological Closed Loop
From the perspective of integrated management of energy sources, networks, loads and storage, the ecological closed loop of green electricity will not be a single point module, such as a photovoltaic or charging pile module, but from the generation of green electricity to storage and then to charging electricity consumption. In the green electricity SaaS storage service, there is an in and out of green electricity, with a unique time and consumption hash value. Only in this way can we truly have a complete green electricity digital asset cycle.
For computing power assets, there is a concept of GPU hours, which is used as the unit of computing power asset pool; and for green electricity assets, there can be something like GWh green watt hours, which is used as the unit of green electricity energy asset pool. On the basis of distributed green electricity infrastructure, the second layer (similar to Layer2) virtual energy asset pool will be involved. This involves the entry of green electricity assets into the pool, dynamic asset pricing and liquidity. The first and foremost important thing is the green electricity asset entry algorithm, the confirmation of ownership, positioning (distributed unique location address and confirmation) and coordination of entry conditions (staking entry or conditional entry, or random time entry, etc.) of green electricity assets.
From this perspective, photovoltaic modules and charging pile modules are far inferior to energy storage modules, which are indispensable intermediate links in the closed loop of green electricity ecology. Therefore, in the design of the ecological framework, Kaige designed the second layer of green electricity as an "EVM" of green electricity assets. The smart contracts, algorithm protocols, basic component services, etc. after the assets enter the pool will become an open second-layer platform for aggregating distributed green electricity assets/resources. For example, the PPA smart contract of green electricity transactions. On this second-layer platform, the PPA power purchase agreement can be similar to the Ricardo contract model to realize the smart contract based on the liquid asset pool.
(3) Green electricity trading network
With the green power asset pool, combined with VPP (the network foundation for transaction exchange), P2P green power transactions can be realized. The key to green power transactions is full marketization, so there are multi-level market structures (capital side and asset side and diversified transaction methods), diversified market participants (green power buyers and sellers, liquidity LP, arbitrage speculators, standardized investors, etc.), and multi-angle liquidity pools and liquidity.
Green electricity trading requires full support from AI technology. Whether it is the green electricity dynamic pricing algorithm, electricity price arbitrage prediction, the optimal path for green electricity resource trading configuration, and the price curve optimization of the green electricity trading algorithm, etc., all require deep support from EnergyGPT and time series AI models.
In the liquidity pool of green electricity transactions, green electricity comes from different market participants or different sources, and the needs and timeliness of holders or buyers and sellers are different. There may be both 2B standardized photovoltaic storage and charging nodes or large-scale photovoltaic storage and charging modules, and there may also be a large number of distributed household photovoltaic storage and charging modules. It also involves peak and valley grid electricity, which leads to the price of green electricity is not static or relatively fixed, but a dynamic and decentralized green electricity pricing algorithm. This pricing algorithm that builds consensus and trust in the market means the pricing power of green electricity. What does the pricing power of green electricity mean? Those who work in finance understand it.
In green power trading, the trading methods and market participants are different, and the coordination conditions for asset pooling are also different, so the trading is also very complicated. Although there are CEX with order books, decentralized DEX and OTC transactions, because of the asset pooling algorithm and asset pricing algorithm, the core of green power trading is SWAP, which is the automatic optimal configuration of decentralized resources. This means the optimal configuration of the core green power trading: decentralized green power AMM trading algorithm. Because green power energy assets have dissipative characteristics, it may be necessary to make corrections and optimizations based on a fixed product algorithm similar to Uniswap.
Green Power’s AI Smart Heart
(1) EnergyGPT and Home AI Computing Center
The collision between AI and green electricity creates a lot of sparks, and they are high-voltage sparks. We have cooperated with energy laboratories in American universities on EnergyGPT. There are a large number of green electricity large-scale model application scenarios around green electricity price arbitrage, peak shaving and valley filling, equipment attenuation cycle, thermal runaway of energy storage batteries, DER demand forecasting, power load forecasting, active charging and discharging strategies, etc. This EnergyGPT is different from the traditional LLM large model, nor is it a traditional time series prediction large model. It is a hybrid MoE expert model.
Since the DePIN smart box on which the green electricity distributed network is based can be configured with some GPU computing power, it can perform local electricity price demand forecasts and calculations of the optimal arbitrage charging and discharging strategies, as well as local rendering calculations for home film and television entertainment games. At the same time, it can also cooperate with regional centers to perform some edge computing tasks.
Standardized photovoltaic storage and charging nodes can be configured as regional AI computing centers. A certain scale of AI chip computing power can be configured on the basis of energy storage cabinets to perform calculations such as regional demand forecasting, electricity price arbitrage, peak shaving and valley filling, charging and discharging strategies, and regional AI computing tasks. They can also serve as regional nodes for edge computing.
（2）AI Agent 和 AI Bot
EnergyGPT and AI computing that support green electricity basically appear in the form of AI Agent or AI Bot on the user side. The needs of each 2B small and medium-sized enterprise or standardized node and 2C household are different, and the green electricity AI mode needs to be intelligently configured, and can even be opened up to more application scenarios.
Distributed AI nodes are nodes that are expanded into regional AI computing nodes based on VPP and regional standardized optical storage and charging nodes, becoming distributed AI computing nodes and edge computing nodes.
Due to limited space, I will not elaborate on the AI part. We will discuss it in detail at the special seminar when we have the opportunity.
A new financial system for green electricity
(1) Standard investment model
There is a standardized product in the green electricity ecosystem, namely the green electricity photovoltaic storage and charging integrated charging station, which is generally about 300KWh of photovoltaic and about 200KWh of energy storage plus supporting charging piles and parking spaces. Some AI chips are configured in the energy storage module to increase AI computing power, creating a typical green electricity photovoltaic storage and charging AI standard node. This standard node can accurately evaluate and calculate the overall input, actual output and investment return cycle, which is equivalent to a standard investment model. Its main revenue comes from green electricity charging consumption, dynamic balance subsidies for power grids, peak shaving and valley filling and electricity price arbitrage income, as well as regional AI computing power cloud rendering, cloud computing power and edge computing tasks. The node of a standard investment model can be designed as a fixed-income RWA product.
Compared with the standardized photovoltaic storage charging AI node, the green electricity family investment model is a non-standard product, because the size and electricity consumption patterns of European and American families vary greatly. Some families are farm models equivalent to small industrial and commercial storage, and some families are simple home use models. Therefore, it is difficult to form a standard green electricity family investment model. However, the green electricity family investment model will have more charging and electricity application scenarios, which will be very interesting: "rooftop photovoltaic + household storage + new energy vehicles + home AI computing center + robots / VR / games, etc."
(2) Green Power RWA Product Agreement
In addition to the standard investment model node mentioned above, the design of the RWA product of green electricity mainly depends on the operating cash flow of the photovoltaic storage and charging module in the green electricity ecosystem. If we look at it from this perspective, the most obvious one at present is the charging pile business. The charging pile operator can directly charge the charging fee (2C), including electricity fee and service fee; which is equivalent to green electricity consumption; however, from the perspective of scale and stability, the future will be energy storage operators, but most of the current energy storage is OEM, and it has not yet reached independent operators. Branded energy storage operators will charge monthly service fees from owners (2B institutions or 2C home storage), which is a relatively stable operating cash flow and is easier to expand.
At present, photovoltaic panel modules often serve as spare parts, and most of the photovoltaic green electricity is consumed by the user. Very little of the surplus is sold, and it basically cannot be counted as operating cash flow.
In the process of green power RWA, DePIN is one of the infrastructures for the tokenization of green power RWA, which consolidates the transparency of green power assets and value; at the same time, because the entry and transaction exchange of green power assets will go through the DePIN smart box, DePIN is loaded with RWA token cash flow. In this way, RWA becomes the feedback loop of the green power DePIN flywheel and the endogenous value promoter of the green power distributed network.
The cash flow of green electricity RWA tokens is often the profit of producers and consumers, such as green electricity price arbitrage, demand response, green electricity transaction fees, management fees of green electricity liquidity pools, wholesale and retail price differences between carbon credits and green electricity certificates, etc.
(3) Green power RWA product innovation
The basis of RWA product innovation in the green power ecosystem must be the core algorithm protocol protocolization, namely the three core algorithms: decentralized green power asset pooling algorithm protocol, decentralized green power asset pricing algorithm protocol, and decentralized green power trading algorithm protocol.
With this foundation, we can design RWA products related to green electricity, such as green bonds, fixed income products; green ABS, diversified income products or cash distribution products; these are relatively basic RWA products, which can be understood as "U.S. bonds" and high-quality "corporate bonds" similar to green electricity.
Based on these green electricity U.S. Treasury bonds and other assets, we can further innovate and design green electricity-related RWA products, such as lending products based on green electricity "U.S. Treasury bonds" assets, futures options products, insurance products for electricity prices or computing power, and further green electricity computing power stablecoins and green electricity ETF index products.
Another attempt is that in addition to Bitcoin mines combining green electricity with grid electricity, the green electricity mined contains green Bitcoin; there is also the regional solar storage AI node, whether it can be configured with a Bitcoin mining machine, and Bitcoin mining can be carried out with the remaining electricity with appropriate cost in addition to peak shaving and valley filling. This model is the "green electricity + Bitcoin computing power" RWA product.
In fact, there are already many projects in Europe and the United States around the new ecology of green electricity, such as MicroGrid, P2P electric trading and Renewable Power Coin, which are already exploring the tokenization and P2P trading of green electricity. Even in Hong Kong, where every inch of land is valuable, there is already a microgrid with 600,000 photovoltaic units connected. And 80% of the largest manufacturing capacity of the global photovoltaic storage and charging industry is in China. Therefore, green electricity is China's core opportunity, but AI computing power is banned by the United States, the domestic energy market is not fully marketized, and the superstructure of the photovoltaic storage and charging industry is not in China. We only have the hardware production capacity of green electricity, but not the soft heart and soft brain of green electricity, as well as the pricing and trading rights.
New green power financial ecosystem
In summary, green electricity is not only the best asset target for RWA, but it is actually a new ecosystem. Green electricity combined with DePIN, AI and RWA forms a huge virtual green energy pool, transaction exchange and new financial system.
There are still opportunities because China still has an advantage in hardware production capacity. At the same time, the green electricity, photovoltaic, storage and charging industry does not have a suitable valuation system in the traditional financial system. Under the premise of decoupling between China and the United States and containment by Europe and the United States, it is difficult to have a reasonable valuation of green electricity, photovoltaic, storage and charging based on traditional cost or benefit methods. However, in the RWA system, green electricity is combined with the hot spots and concepts of DePIN, AI and RWA tracks, and the equipment nodes, installed capacity, etc. of photovoltaic storage and charging in the real world can be converted into a high premium advantage for the leader in the digital asset track.
However, what is more urgent is that Europe and the United States are leading the way in soft infrastructure and basic research around green power trading, such as SaaS cloud energy management, EnergyGPT, energy blockchain, green power certificates and carbon credits, P2P exchanges, and related green power asset agreements, PPA smart contracts, decentralized pricing algorithms, P2P trading algorithms, and green power financial derivatives Defi protocols. Europe and the United States also have advantages in Bitcoin computing power and AI computing power. Even the foundation of the RWA system, around public chains, Layer2, green power stablecoins, etc., is also dominated by Europe and the United States.
We must realize that this new green electricity ecosystem will be a new valuation system, a new incentive system, a new trading system, a new monetary system, and a new financial system.
In the real world, green electricity is the core energy of the future. Bitcoin, the core asset of the crypto world, is bound to be linked to the narrative of green electricity computing power. If the United States and even the world use Bitcoin or green Bitcoin as a reserve asset, then official institutions, financial institutions and large funds will all speculate on Bitcoin, green electricity and AI.
Kai Ge has been engaged in real estate finance for many years. Looking at the past twenty years, the underlying financial support is almost "land + real estate", and looking forward to the next twenty years, the underlying financial support will definitely be "green electricity + computing power (Bitcoin computing power + AI computing power)".
In the future, the decisive battle between China and the United States will be between green electricity and computing power. The decisive battle of green electricity is not about hardware production capacity, but about the soft-core computing power of green electricity, the system large model capability, pricing ability and derivative product capability. Therefore, our green electricity must move from hard to soft, and we can no longer continue to manufacture and manufacture again!
Finally, we are jointly setting up an Asian RWA professional investment bank to provide diversified RWA investment banking services for high-quality assets and entrepreneurs. Interested institutions and potential partners are welcome to participate in the construction. You are also welcome to add WeChat YekaiMeta to join the RWA practice seminar group to participate in the discussion.
