SUNBLOCK

THE FUTURE OF RENEWABLE ENERGY

SUNBLOCK 1
 SunBlock

Niall Yorke
Cillian Kirk
John O’Dowd

M.Sc. in Electronic Commerce 2018

Prof Alan Smeaton

Dr. Malcolm Brady

School of Computing/DCUBS
August 2018

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 Declaration

I hereby certify that this material, which I submit for assessment on the programme of study
leading to the award of M.Sc. in Electronic Commerce is entirely my own work and has not
been taken from the work of others save and to the extent that such work has been cited
and acknowledged within the text of my work” followed by each team members name,
signature, student number and date. I also certify that I have read, understand and am in
compliance with the DCU Guidelines on Best Practice in Research Ethics.

__________________
Niall Yorke
13475002

__________________
Cillian Kirk
13328946

__________________
John O’Dowd
13374136

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 Acknowledgements

We would firstly like to thank our advisors, Professor Alan Smeaton and Dr. Malcolm Brady,
whom together with Dr. Cathal Gurrin and the DCU faculties of Business, Computer Science
and Engineering, provided us with immense support and assistance in reaching our end
goal. Additionally, we would like to thank John Breslin, Subhasis Thakur, Dr. Peter Deeney,
Dudley Charleville, Dara Ó Maoildhia, Conor White and the countless communities across
Ireland who played a significant role in the research and development phases of the
practicum.

On a personal level, we would like to thank our parents and friends who expressed
continued support throughout the past year.

Niall, Cillian and John

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Table of Contents
Part 1 – Business Plan
Executive Summary .............................................................................................................. 9
Overview of SunBlock ......................................................................................................... 12
Introduction ................................................................................................................................ 12
Concept & Novelty ...................................................................................................................... 14
Motivation & Potential ............................................................................................................... 16
1. Government ................................................................................................................................ 17
2. Urbanisation ................................................................................................................................ 18
3. Infrastructure............................................................................................................................... 18
4. Continued Investment in the Renewable Energy Sector ................................................................ 20
5. Grid Parity.................................................................................................................................... 20
User Case Scenario...................................................................................................................... 21
Benefits of SunBlock ................................................................................................................... 22
Corporate Background ....................................................................................................... 24
Corporate Structure and Funding................................................................................................ 24
Shareholder Breakdown ............................................................................................................. 24
Why SunBlock is Operating in Ireland? ....................................................................................... 24
Close to Target Market.......................................................................................................................... 24
Tax Rate ................................................................................................................................................ 24
Skilled Workforce .................................................................................................................................. 25
Start-up Funding and Support Programmes ........................................................................................... 25
Gateway to World Markets ................................................................................................................... 25
Management Team..................................................................................................................... 25
Niall Yorke – Chief Executive Officer ...................................................................................................... 25
John O Dowd – Chief Technology Officer ............................................................................................... 26
Cillian Kirk – Chief Financial Officer ........................................................................................................ 28

Market & Industry Overview .............................................................................................. 30

The Market ................................................................................................................................. 30
Market Size & Growth Rates.................................................................................................................. 30
Key Success Factors............................................................................................................................... 30
Trends .................................................................................................................................................. 31
Customer Analysis ................................................................................................................................. 31
Industry Analysis......................................................................................................................... 34
Porters 5 Forces .................................................................................................................................... 34
PESTEL Analysis ..................................................................................................................................... 35

Competitor Analysis ........................................................................................................... 39

Direct Competitors...................................................................................................................... 39
EnerPort (Ireland) ................................................................................................................................. 39
SunContract (Slovenia) .......................................................................................................................... 39
Power Ledger (Australia) ....................................................................................................................... 40
LO3 Energy (USA) .................................................................................................................................. 40
Grid + (USA) .......................................................................................................................................... 41
Indirect Competitors ................................................................................................................... 42

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 Sonnen Batterie (Germany) ................................................................................................................... 42
Kingspan (Ireland) ................................................................................................................................. 42
Tesla PowerWall (Worldwide) ............................................................................................................... 43
Brand Positioning Map ............................................................................................................... 43
Business Strategy ............................................................................................................... 45
Mission Vision & Values .............................................................................................................. 45
Business Model ........................................................................................................................... 45
Problem ................................................................................................................................................ 45
Solution ................................................................................................................................................ 45
Unique Value Proposition...................................................................................................................... 46
Key Metrics ........................................................................................................................................... 46
Customer Segments .............................................................................................................................. 46
Revenue Streams .................................................................................................................................. 47
Pricing................................................................................................................................................... 47
Cost Structure ....................................................................................................................................... 48
Unfair Advantage .................................................................................................................................. 48
Channels ............................................................................................................................................... 48

Marketing Strategy ............................................................................................................ 49

Target Market ............................................................................................................................. 49
Marketing Objectives.................................................................................................................. 49
Build Brand Awareness.......................................................................................................................... 49
Lead Generation ................................................................................................................................... 49
Grow Market Share ............................................................................................................................... 50
Thought Leadership .............................................................................................................................. 50
Market Drivers ............................................................................................................................ 50
Falling Costs of Renewable Energy......................................................................................................... 50
Increased Government Push for Renewables......................................................................................... 50
Increasing Consumer Awareness ........................................................................................................... 51
Marketing Mix ............................................................................................................................ 51
Product ................................................................................................................................................. 51
Price ..................................................................................................................................................... 51
Place ..................................................................................................................................................... 52
Promotion............................................................................................................................................. 52
Marketing Implementation......................................................................................................... 52
Marketing Channels .............................................................................................................................. 52

Financial Forecast............................................................................................................... 55
Sales............................................................................................................................................ 55
Year 1 (2019)......................................................................................................................................... 55
Year 2 (2020)......................................................................................................................................... 55
Year 3 (2021)......................................................................................................................................... 55
Sales Assumptions................................................................................................................................. 56
Anticipated Sales Projections ................................................................................................................ 56
Targeting Large Communities ................................................................................................................ 56
Cash Flow Forecast ..................................................................................................................... 57
Best Case Cash Flow Projection ............................................................................................................. 57
Worst Case Cash Flow Projection........................................................................................................... 59
Risk Assessment ................................................................................................................. 61

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 Business Risks ............................................................................................................................. 61
Competitors .......................................................................................................................................... 61
Attracting Communities ........................................................................................................................ 62
Business Interruption ............................................................................................................................ 62
Technological Risks ..................................................................................................................... 63
Managing Technical Competency .......................................................................................................... 63
Data Breach .......................................................................................................................................... 63
Server and Network Downtime ............................................................................................................. 64
Financial Risks ............................................................................................................................. 64
Profitability ........................................................................................................................................... 64
Funding issues....................................................................................................................................... 65
Company Specific Risks ............................................................................................................... 65
Volatility of Cryptocurrencies ................................................................................................................ 65
Grid Infrastructure ................................................................................................................................ 66

Part 2 - Technology Plan

Technology Plan Overview ................................................................................................. 68
Website .............................................................................................................................. 68
Design Process ............................................................................................................................ 68
Site Map ............................................................................................................................................... 69
Wireframes ........................................................................................................................................... 69
Mood Board.......................................................................................................................................... 70
Nielsen and Molich’s (1990) Usability Heuristics Guidelines ................................................................... 72
Interacting with the SunBlock Website ....................................................................................... 74
Journey 1 – New User............................................................................................................................ 74
Journey 2 – Existing User ....................................................................................................................... 79
Registration & Sign In Functionality ............................................................................................ 82
User Management & Amazon Web Services (AWS)................................................................................ 82
Registration & Sign In Process ............................................................................................................... 82
Database Storage & User Pools ............................................................................................................. 83
Security................................................................................................................................................. 84
Verification Step ................................................................................................................................... 84
SunBlock Trading Mechanism ............................................................................................ 85
Smart Meters .............................................................................................................................. 85
Blockchain................................................................................................................................... 87
How Blockchain Works .......................................................................................................................... 87
Why Blockchain Suits our Application .................................................................................................... 88
System Architecture .............................................................................................................................. 89
Payment Mechanism............................................................................................................................. 90
Market Mechanism ............................................................................................................................... 91
Appendix ............................................................................................................................ 92
Appendix 1: SunBlock Potential Versions ................................................................................... 92
SunBlock V1- P2P energy trading using the main grid............................................................................. 92
SunBlock V2 – P2P solar energy trading facilitated by new infrastructure............................................... 93
SunBlock V3- On grid P2P solar energy trading and smart demand and supply management.................. 95
Appendix 2: SunBlocks Potential Applications ............................................................................ 96
P2P Trading ........................................................................................................................................... 97

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 Smart Demand and Supply Management............................................................................................... 97
Shared Ownership Application .............................................................................................................. 98
Electric Vehicles .................................................................................................................................... 98
Appendix 3: Legal Requirements ................................................................................................ 99
Register Business Name ........................................................................................................................ 99
Company Registration ......................................................................................................................... 100
Online Business Policies ...................................................................................................................... 102
Employer Compliance ......................................................................................................................... 103
Tax Compliance ................................................................................................................................... 103
Appendix 4: Future Expansion .................................................................................................. 103
International Expansion ...................................................................................................................... 103
Technological Innovation .................................................................................................................... 105
Additional Renewable Energies ........................................................................................................... 105
Appendix 5: Research Synopsis ................................................................................................. 106
Appendix 6: Financial Notes...................................................................................................... 110
Wages and Salaries ............................................................................................................................. 110
Subscriptions ...................................................................................................................................... 111
Bank Loan ........................................................................................................................................... 111
Investment Capital .............................................................................................................................. 111
Investors ............................................................................................................................................. 112
SEAI Grant - Sustainable Energy Community Pilot Grant ...................................................................... 112
Enterprise Ireland Funding .................................................................................................................. 112
Batteries ............................................................................................................................................. 113
Smart Meters ...................................................................................................................................... 113
Token Exchange Listing ....................................................................................................................... 113
Amazon Web Services ......................................................................................................................... 114
Breakdown of Additional Expenses ...................................................................................................... 114
References ........................................................................................................................ 116

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 SUNBLOCK
Part 1 – Business Plan

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Executive Summary
The purpose of this practicum is to develop a business plan for the proposed
commercialisation and development of SunBlock. When an individual household produces
energy through a renewable energy source such as a solar panel and reaches capacity, the
meter begins to run backwards and directs the excess energy back to the grid. SunBlock is a
web-based platform that will facilitate the peer-to-peer energy trading of excess renewable
energy between members of a community using blockchain technology. SunBlock will
operate on a subscription fee based revenue model for the services its platform provides its
users. Some of the benefits that SunBlock provides its users are reducing their
environmental impact, allowing them to become self-sustainable and providing them with a
potential new source of income through the sale of excess renewable energy. SunBlock
envisions a future shift away from national grid systems towards a more community focused
approach to energy and SunBlock’s micro-grid systems have the potential to be a pioneering
move in a renewable energy industry that is constantly innovating and growing.

The Market

SunBlock’s initial efforts will focus on securing a position within the Irish market. Solar PV
technology has seen the fastest growth in deployment of any renewable energy since 2010
(SEAI, 2017). A number of market drivers will increase the adoption of solar such as falling
prices of the technology and increased number and value of grants available but a key factor
that will drive the adoption of solar PV panels in Ireland over the next number of years is the
EU Environmental targets for 2020 and 2030 that the Irish Government agreed to meet.
The renewable energy market will continue to grow in Ireland with solar energy playing an
integral role and with Ireland’s population expected to grow by 1 million by 2030 with the
addition of 25,000 homes per annum, SunBlock will have a great market opportunity to
develop and grow the business.

The market research that we conducted helped identify some of the motivating factors in
relation to consumers installing PV panels. We were able to get in contact with a number of
communities across Ireland that were interested in renewable energy and willing to assist
with our research in the form of qualitative interviews. SunBlock’s ideal target customer is
discussed further under the Business Strategy and Marketing Sections.

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Future of SunBlock

Once SunBlock has strongly established itself within the Irish market there are plans to
expand into two markets that have identified as having huge market potential and they are
Europe and Africa. The future deployment and investment estimates for solar energy in
both these markets present a great opportunity for SunBlock to expand internationally and
grow the brand. There are also other directions such as technological innovations that are
discussed further under the Future Expansion section.

Sales & Marketing

A key marketing objective of SunBlock is lead generation and being able to convert those
leads in sales. A number of marketing methods have been carefully chosen that we believe
will allow us to achieve our marketing objectives and also provide a good balance between
organic and paid advertising. SunBlock has been in contact with communities interested in
renewable energy as part of our market research and will continue to develop relationships
with these communities as they present a channel to attract SunBlock ideal target audience.
Events such as ‘Ideal Home’ events have also been identified as being good opportunities to
increase brand awareness and generate leads. SunBlock will attempt to take a very
customer centric approach to selling and place an emphasis on developing and maintaining
customer relationships.

Financials

The deployment of the platform is being delayed until 2020 as it would be cost ineffective to
deploy it before that due to costs being too high. We predict that in 2020 costs will greatly
reduce due to the electricity grid being more willing to allow SunBlock to use the existing
infrastructure instead of SunBlock having to provide its own electrical circuits.

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Overview of SunBlock
Introduction
Wholesale European electricity markets have undergone numerous changes in recent years
due to the establishment of internal markets. In almost all member states, wholesale
electricity markets have been developed which provide “day-ahead, forward and intraday
trading” (European Commission, 2016). And today, we are now witnessing separate
wholesale electricity markets being coupled with neighbouring markets to create more
efficient and liquid markets that are interconnected (European Commission, 2016).
However, such markets are now experiencing an unprecedented level of change as there is
a greater drive to change the way in which energy is generated, distributed and used by
society (SEAI, 2014). The importance to reduce greenhouse gas (GHG) emissions is clear and
the majority of governments within Europe are aware of the efforts required to achieve the
emissions reduction goal set by the European Union for 2050 (SEAI, 2014). With such
change comes opportunity.

There are a number of sustainable methods of generating energy. Ocean energy has the
potential to provide renewable energy around the world. However, technological
development still remains a critical issue facing ocean energy systems despite the constant
research in the area given that these systems must operate in harsh and violent
environments (Department of Communications, Marine and Natural Resources, 2005).
Meanwhile, wind energy is the largest contributing resource of renewable energy in Ireland
(SEAI, 2017a). Yet, solar photovoltaic (PV) technologies are one of the most exciting
prospects for decarbonising the global energy system (SEAI, 2017b). Within these
technologies, the PV effect is observed in which “a voltage is created under incident
electromagnetic radiation (e.g. visible light) at a particular wavelength” (SEAI, 2017b).
Globally, the technology has experienced a huge adoption in recent years growing from
“just 4.5GWp cumulative capacity in 2005 to over 240GWp by the end of 2015” (SEAI,
2017b). This growth has largely been driven by economic support schemes and tax
incentives facilitated by governments. The price of PV modules has also fallen by 80% since
2009 as a result of technology and supply chain innovations (SEAI, 2017b).

Although Ireland may not seem like an ideal location to deploy a technology that relies on
sunlight for optimal operation, advancements in PV technologies and the reductions in costs

SUNBLOCK 12
have made solar PV an increasingly viable option in Northern European countries (SEAI,
2017b). As a result, the Irish solar PV industry is growing as it is recognised as an important
component of the Irish energy mix. The main driver of this growth at present is “Part L of
the domestic building regulations which covers the conservations of fuel and energy in
dwellings” (SEAI, 2017b). Under this regulation, a proportion of the dwellings energy
consumption must be provided by renewable energy sources. For many, the most cost
effective means for meeting this requirement is the installation of solar PV modules on the
rooftops of new homes. Along with this uptake of solar PV modules on domestic rooftops,
“larger rooftop arrays are also beginning to appear in Ireland as PV systems become an
increasingly worthwhile investment for businesses and public bodies” (SEAI, 2017b).

With the use rate of solar PV modules increasing, investment in the sector has also grown
considerably with the most recent contribution being €140 million from the Irish State
Investment Fund in 20 new solar parks (Burke-Kennedy, 2018). Of course, with any new
technology gaining proliferation globally, investors can become fixated with opportunities
and services which form the supply chain which in the case of solar include “the silicon,
modules, mounting equipment, and electronics of which the systems comprise” (SEAI,
2017b). As the most visible elements of solar PV modules, these components constitute a
large share of the overall market value. While these provisions are dominated by big players
in the market such as Trina Solar and First Solar, there has been an increase in the interest
and investment surrounding supporting services and more specifically, smart grid products
and services. This, along with the increasing market size, presents opportunities to exploit
technologies involving ICT systems, data analytics, telecommunications, artificial intelligence
and as of late, blockchain.

As the notoriety of Bitcoin has increased, so too has its underlying technology. Blockchain
based systems are a combination of a “distributed ledger, a decentralized consensus
mechanism, and cryptographic security measures” (Mengalkamp et al., 2018).
Fundamentally, blockchain systems have the potential to revolutionise transaction systems
and provide fully decentralised market places without the need of a third party to verify
transactions between parties as a result of the blockchain data structure and consensus
mechanism (Thakur and Breslin, 2018). Such a consensus mechanism is central in avoiding
the dissemination of corrupted information (Mengalkamp et al., 2018). This technology,

SUNBLOCK 13
when combined with smart meters that record energy consumption and solar PV modules,
has the potential to revolutionise energy markets and provide the means for countries
around the globe to move toward a sustainable, renewable energy model.

Concept & Novelty

When an individual household produces renewable energy through a renewable energy
source such as a solar panel and reaches capacity, the meter begins to run backwards and
directs the excess energy back to the grid. While in some countries, such as the United
States of America, offer net metering schemes which credit residential and commercial
customers for the electricity they add to the grid, others lack such incentives. In Ireland, a
pilot scheme has been underway since 2014 where domestic customers can produce their
own electricity and export the surplus onto ESB Networks LV System for payment rate of
€0.90 cent per kWh (Electric Ireland, 2018). However, the pilot scheme has been closed to
new customers since the 31st of December 2014. Therefore, what is needed in Ireland and in
many other countries across the globe is a service that encourages renewable energy
generation in communities and other networks to a greater extent. Such a service should
allow consumers to take full ownership of their own renewable energy generation, to
benefit from new technologies to reduce their bills and participate actively in the market.
Cue SunBlock.

SunBlock is an online platform that allows individual households to manage renewable

energy generation and to trade this excess renewable energy they have generated to one
another through blockchain technology and more specifically, smart contracts. Smart
contracts facilitate the exchange of anything of value in a transparent and conflict-free
manner without the need of a middleman. Coupled with solar panels which many new
housing developments have and smart energy meters which allow the consumer to actively
monitor their renewable energy generation, blockchain has the potential to enable peer-to-
peer (P2P) energy trading. In theory the benefits of such a system would be substantial. It
encourages renewable energy generation and energy responsibility, provides an additional
source of income, transforms power into a community resource and can resolve balancing
issues on the grid with regard to supply and demand through smart energy management.
SunBlock would also provide the means for communities to become self-sufficient. They will

SUNBLOCK 14
no longer have to buy an abundant amount of energy from the main grid at a fixed rate
which uses traditional energy generators such as coal powered thermal generators which
causes massive amounts of GHG emissions. Fundamentally, SunBlock wants to decentralise
the energy landscape. Furthermore, the use of blockchain technology provides security.
More importantly, it can move each member state of the EU toward achieving the
Renewable Energy Directive and decarbonising the environment.

Upon initially researching the concept, a major obstacle was discovered. The grid
infrastructure in Ireland is owned and maintained by ESB Networks and operated on a daily
basis by Eirgrid (Energy Co-operatives Ireland, 2018). The grid is made up of two types of
networks. Firstly, there is the transmission lines “which carry very large amounts of
electricity long distances connecting power stations to local transformer stations” (Energy
Co-operatives Ireland, 2018) and secondly, “local distribution grids which carry electricity
from the transformer stations into individual consumers’ premises” (Energy Co-operatives
Ireland, 2018). For SunBlock to facilitate the exchange of energy from one point to another,
the application would have to be connected to the main grid and utilise such networks.
However, this cannot be achieved due to both the hierarchical structure of the electricity
distribution network and the set of constraining network voltages, power flows, and fault
levels in the distribution network. Furthermore, with the integration of more variable
renewable forms of generation into the main grid, transmission operators must consider an
additional complex range of demand and supply issues which, according to Eirgrid (2018),
include the “operational challenges of switching to more variable non-synchronous
generation sources [and] security of supply in terms of managing an increasing variety of
generation technology types”.

We examined the possible solutions to overcome such an obstacle (See SunBlock Potential
Versions). However, the most promising solution ,which was to provide the necessary
infrastructure to move off-grid and establish a self-sustainable network/community, was
not financially feasible unless substantial capital was raised. Fortunately, the grid
connection issue is only temporary. There is continued effort from the Government to
improve Irelands national grid especially with regard to microgrid connectivity. Grid 25 is
one such programme committed to this (See Infrastructure). Furthermore, Hence, we
believe we will be able to connect to the main grid by 2020, SunBlock’s launch year.

SUNBLOCK 15
SunBlock’s mission statement is as follows:

To create a new energy economy by empowering communities through renewable energy

management and trading.

With regard to the novelty of SunBlock, a blockchain microgrid has been developed in
Brooklyn, New York by LO3 Energy in conjunction with Siemens (See Competitor Analysis).
There a number of households involved both with and without solar PV modules installed
and through the use of a blockchain enabled transactive energy platform, the “neighbours
are empowered to produce, consumer and purchase power within their community”
(Siemens, 2018). In this case, the expense of establishing the infrastructure necessary for
both the generation of renewable energy and transfer of such energy was covered by each
household involved.

Elsewhere, there are a number of blockchain based energy applications. Power Ledger is
one of the more notable (See Competitor Analysis). Developed and trailed in Australia in
2016, Power Ledger aims to find a way to “include individuals in high-density housing in the
booming distributed energy economy” (Power Ledger, 2018) and re-invent “electricity
markets to provide an incentive for the connection of distributed energy resources” (Power
Ledger, 2018) through P2P trading. Yet, none have sought to provide both an application
and the infrastructure necessary to trade and monitor renewable energy generation as well
as to develop a self-sustainable community.

Motivation & Potential

The energy industry is changing. Due to advancements in technology, there has been a shift
in the power balance between the centralised power authorities and consumers. With
distributed energy resources such as wind farms, solar PV modules, batteries and microgrids
now taking precedence along with emerging technologies such as blockchain, has moved
“the power balance from central authorities to the edges of the grid, to where citizens have
control” (Power Ledger, 2018). Furthermore, the shift in power reflects many individuals
desire to not only control their cost of energy consumption, but to behave in a more
sustainable and socially responsible manner. What is now needed, especially in Ireland, is a
service that takes the power away from central intermediaries and put the consumer in
charge. Fortunately, we live in an age where the technology exists that can facilitate such a

SUNBLOCK 16
movement. The energy industry is going to have to accept that in the coming years “it will
be cheaper and more effective to self-supply than to rely on the network to provide low-
cost and reliable and clean energy” (Power Ledger, 2018). SunBlock want to be at the
forefront of this movement.

There are a number of factors that greatly enhance the potential of SunBlock. These are as
follows:

1. Government

Governments are playing an increasingly important role in promoting the use of renewable
energy. According to REN21 (2017), this is due to 1): population growth especially in cities
has resulted in an ever-growing demand for energy services and 2): more and more policy
makers are setting renewable energy targets. These targets express the continued
commitment in the deployment of not only renewable energy deployment, but services
surrounding renewable energy management. Such targets are present around the globe
with one of the most ambitious directives being in the EU as a result of renewable energy
being at the centre of the EU’s priorities (European Commission, 2017). Titled ‘Renewable
Energy Directive’, each member state must meet the binding target which is to reduce GHG
emissions by 20% by 2020 and is driving expenditure in the sector (SEAI, 2014). However, a
number of member states including the United Kingdom and Ireland are not on track to
meeting this target. While Ireland has made steady progress since 1990 in increasing its
contribution in renewables (SEAI, 2016), Ireland is lagging behind its set target (Figure 1)
and now aims to have a renewable energy share (RES) of 16% by 2020. Consumer uptake is
central is meeting this target. However, individuals producing renewable energy not only in
Ireland feel under-rewarded for their contribution as their excess energy spills into the
network. This must be addressed if Ireland and many other struggling member states are to
meet their 2020 target. SunBlock can provide the solution.

SUNBLOCK 17
Figure 1 - Member States current progress towards their 2013/2014 and 2015/2016
indicative RED targets (European Commission, 2017)

2. Urbanisation

Cities are a major consumer of energy and resources and as a result are responsible for
large shares of GHG emissions. They are however, an ideal location to deploy renewable
energy generators and other various eco-friendly services. Hence, many urbanised areas are
now promoting green growth. According to OECD (2010), “acting on green growth in cities
requires new financial instruments, such as urban use of carbon markets, local cap-and-
trade systems and grants” that take environmental sustainability into account. Furthermore,
a number of cities are committed to transitioning to 100% renewable energy in total energy
use (REN21, 2017). Urban areas are therefore an ideal target for SunBlock.

3. Infrastructure

Over the past number of years in Ireland, the Better Energy: the National Upgrade
Programme has resulted in an “average investment in energy efficiency-related construction
of around €230m a year” (SEAI, 2014). As a result, more than 250,000 homes have been
upgraded and fitted with solar panels and better insultation. Furthermore, as Ireland aims
to meet the targets of the Renewable Energy Directive, there is a continued commitment by

SUNBLOCK 18
national entities to improve the infrastructure of the grid in order to handle the large
amounts of intermittent power produced by renewable sources. The Grid 25 programme for
example, sets out to achieve the following:

“To build a more cost-effective and efficient electricity system to support development in the
regions, ensure continued reliability and security of supply (an essential condition for all
businesses), enable use of Ireland’s natural renewable energy resources, reduce emissions,
and enable increased connectivity to the European grid” (SEAI, 2014).

As a result of this scheme which, it is safe to assume that grid connection is only a
temporary problem for SunBlock.

In addition to the continued investments and improvements to the national grid, solar
system costs continue to decline. Over the past 8 years, the cost of solar systems including
installation costs, has declined by approximately 15% and moving forward, in the next 4 – 5
years, it is predicted that the cost will
continue to decline accumulating to
a total cost reduction of 40%
(Deutsche Bank Securities Inc, 2015).
The greatest cost reductions are
most likely to come from residential
segments (Deutsche Bank Securities
Inc, 2015). Solar module costs
continue to decline due to the
increased efficiency of panels and Figure 2 - Cost Reductions in Solar PV
Systems between 2011 and 2014
the scale of competition in the
sector. For example, in China, a country which homes a number of leading solar PV
producers, the total module costs of leading Chinese solar companies have decreased from
approximately $1.31 per watt in 2011 to approximately $0.53 per watt (See Figure 2) in
2014 “primarily due to reduction in processing costs and polysilicon costs and improvement
in conversion efficiencies” (Deutsche Bank Securities Inc, 2015).

Fortunately for SunBlock, with this decline in cost comes a decrease in the cost of customer
acquisition of solar systems as a result of increasing customer awareness and the

SUNBLOCK 19
mainstream acceptance recognition that solar is a cost competitive source of electricity
(Deutsche Bank Securities Inc, 2015).

4. Continued Investment in the Renewable Energy Sector

With the use rate of solar PV modules increasing, investment in the sector has also grown
considerably. The estimated total average annual investment in sustainable energy
technologies and services up to 2020 in Ireland is between €2.2 billion and €2.9 billion (SEAI,
2014). Of course, with any new technology gaining proliferation globally, investors can
become fixated with opportunities and services which form the supply chain which in the
case of solar include “the silicon, modules, mounting equipment, and electronics of which
the systems comprise” (SEAI, 2017b). As the most visible elements of solar PV modules,
these components constitute a large share of the overall market value. While these
provisions are dominated by big players in the market such as Trina Solar and First Solar,
there has been an increase in the interest and investment surrounding supporting services
and more specifically, smart grid products and services. Hence, there is the potential for
SunBlock to capture such investment.

5. Grid Parity

Grid parity refers to the “intersection of the price of the electricity generated by a PV
system and the price of conventional electricity production” (Hurtado Munoz et al., 2014)
and as 2015, a number of countries including Ireland are experiencing it (Deutsche Bank
Securities Inc, 2015).

Grid parity holds particular importance for a service such as SunBlock. Firstly, grid parity can
address the numerous economical and financial barriers that prevent many households
from installing solar PV modules and systems. Overcoming such barriers will also lead to the
solar industry becoming independent from incentives and subsidies (Hurtado Munoz et al.,
2014). Secondly, many expect that as more and more regions experience grid parity, there
will be an increase in demand for solar PV modules, systems and services “since the main
barrier for mass adoption is long payback times (high system costs, resulting in high
electricity cost)” (Hurtado Munoz et al., 2014). Finally, SunBlock will be able to compete
with traditional energy sources.

SUNBLOCK 20
The growing market size also greatly enhances the potential for SunBlock but this is
discussed in detail in ‘Market and Industry Overview’.

User Case Scenario

SunBlock Trading Mechanism Buy & Sell Orders

SunBlock Token Transfer

Energy Exchange via Grid

Prosumer Consumer

Figure 3 - SunBlock within a Single Community

Upon a community initially expressing interest in SunBlock, a representative will visit the
site to determine the size of the community and discuss what SunBlock can offer. If the
community wishes to become sustainable through SunBlock, a number of actions will occur.
These are as follows:

1. The representative outlines the number of subscriptions plans SunBlock has to offer and
identifies the one most appropriate for the community. These are outlined in detail in
the ‘Revenue Streams’ section.
2. Each household involved in the initiative creates an individual account that is linked to
the community account page. The community account page is created by the SunBlock
representative. These can be found on: http://www.sunblock-energy.eu/. Each
community will have an assigned representative that they can contact if they encounter
any issues or have any general queries.
3. With the community account set up, the necessary infrastructure will have to be
installed within the community. This will include batteries for storage and smart meters
with our technology installed.

SUNBLOCK 21
4. The private blockchain is developed for the community. Each community member will
be aided by the SunBlock representative in purchasing SunBlock Tokens (SBN).
5. There will be a test period where the individual accounts are further established with
trading preferences developed and included in the smart contract specific to the user
preferences.
6. When the test period is successful, trading can begin. The market opens within the
community in which the prosumer and consumer can set their buying and selling limits
for each trading period. After the trading period closes and the trades are resolved, the
ledger will contain the details of the trades that have been completed.

Benefits of SunBlock
SunBlock has many benefits for its users and these are delivered through SunBlocks four
applications - P2P trading, Smart Demand and Supply Management , Shared Ownership and
Electrical Vehicle. The benefits obtained from these applications and the SunBlock service
are summarised below.

• SunBlock allows users to trade solar electricity with one another automatically and
receive payment in real time using the existing grid infrastructure. This has benefits for
the user who generates surplus electricity and the user who does not generate enough
electricity. The user who produces surplus solar energy can sell this energy to other
households and receive a greater financial amount than simply allowing the surplus
energy to flow back into the main grid. The user who does not produce enough solar
energy can buy some off other households in their community. This allows them to buy
clean, renewable energy at a low cost.

• Through the use of smart meters and battery storage SunBlock can help users save big
on their electricity usage by micromanaging electricity generation, storage and
consumption using blockchain technology in a manner which makes the most out of the
electricity generated.

• SunBlock users have the opportunity to charge their electric vehicle through the service
along with using their EV as a storage device when it is not in use. This takes place
through the Electric Vehicle application.

SUNBLOCK 22
• The Shared Ownership application allows users to pool their solar energy infrastructure
such as PV panels together and allow multiple households to have access to the energy
produced.

• SunBlock allows communities to become self-sufficient in their energy use and most
importantly allows these communities to use 100% renewable energy.

• Although SunBlocks aim is for 100% renewable energy, users can set up to automatically
switch back to traditional energy suppliers when their solar energy generation is not
enough and no one in their community has excess energy to sell.

Below is a table showing a comparison between SunBlock and standard energy providers
which clearly shows the benefits that SunBlock brings to the energy industry and its users.

SUNBLOCK 23
Corporate Background
Corporate Structure and Funding
SunBlock will be a registered limited company in Ireland with offices located in airside retail
park in Swords. Funding for SunBlock will be attained from 5 primary areas – a €75,000
initial investment from SunBlock’s management team, a €50’000 grant from Enterprise
Ireland, a €200’000 grant from the Sustainable Energy Authority of Ireland, a €75’000 bank
loan, along with €100’000 funded by investors. More details on this funding can be found in
the financial section of this report and the financial notes located in the appendix.

Shareholder Breakdown
SunBlock will issue 50’000 shares among its management team with each of the founders,
John O Dowd, Cillian Kirk and Niall Yorke receiving 8’500 shares each meaning they will hold
a 51% stake in SunBlock. The remaining 20,000 shares will be issued to investors along with
employees as an added incentive and method of lowering the wages paid.

Why SunBlock is Operating in Ireland?

From a business point of view, it makes sense for SunBlock to focus on the Irish market
initially as there are no competitors which have launched in Ireland. SunBlock has also
decided to set up its operations in Ireland for a number of reasons:

Close to Target Market

SunBlock wish to be close to the target market in its infancy. This is to provide the best level
of service for its users along with managing projects such as the test micro-grid before the
company is launched.

Tax Rate

Ireland has an attractive corporation tax rate of 12.5% which is far lower than most
European nations.

SUNBLOCK 24
Skilled Workforce

Ireland ranks in the top 10 in the world for quality of its education system, university
education that meets the needs of a competitive economy and knowledge transfer between
universities and companies which makes it an ideal base for SunBlock (IDA Ireland, 2018).

Start-up Funding and Support Programmes

Dublin based start-ups which is what SunBlock will be have access to a vast range of start-up
funding and support programmes, the level of funding and grants available is high by
international standards. Government support agencies include IDA Ireland, Enterprise
Ireland and the Dublin Enterprise Board (Local Enterprise, 2018).

Gateway to World Markets

Ireland is considered one of the most open and globally connected countries in the world
with its close position to the UK and membership of the European Union making it an ideal
choice for SunBlock.

Management Team

Niall Yorke – Chief Executive Officer

Niall (23) completed an undergraduate degree in Marketing Innovation and Technology at

Dublin City University and graduated with a 2:1 degree in November 2017. This degree
helped Niall understand the link between business and technology along with the
importance of marketing. Niall gained a vast amount of professional experience throughout
his undergraduate years, he worked at Paddy Power as an online conversion executive and
as a marketing consultant for Game X. Niall’s drive for success combined with both his
academic and professional experience have provided him with the capabilities to be an
effective team leader which makes him the ideal CEO to lead SunBlock to a successful
future. Niall is currently completing an MSc in E-commerce and has strong interests in
blockchain technology, data analytics and smart energy supply and demand management.

Duties:

SUNBLOCK 25
• Creating, communicating and implementing SunBlocks vision, mission and overall
direction.
• Formulating SunBlock’s strategic plan to guide the direction of the organisation.
• Ensure that SunBlock as an organisation conforms to both Irish and international
standards of governance.
• Organising board meetings and setting the agenda for these meetings.
• Develop marketing strategy for SunBlock and oversee its implementation.
• Managing SunBlock’s marketing channels and generating leads.
• Manage SunBlock’s social media presence.
• Define marketing materials and programmes.

Strengths:

• Analytical Mindset: Niall has an analytical mindset which makes him a strong problem
solver.
• Marketing Acumen: Niall is an expert in marketing campaigns, channels and
communications. This is visible through his academic performance in his undergraduate
degree.
• Long Term Vision: Niall does not get distracted by short term goals but instead is always
focused on the long-term vision and the short-term goals needed to reach this vision.

Weaknesses:

• Multi-tasking – At times Niall struggles to alternate between different projects and

prefers to focus on one at a time.
• Over-optimism – Niall tends to be over optimistic when analysing outcomes, sometimes
this can be considered a weakness as pessimism may be the safer option in certain
scenarios.

John O Dowd – Chief Technology Officer

John (23) graduated with a 2:1 degree in Business studies (Management) from Dublin City
University in 2017. John learned numerous skills throughout this degree that he will bring to
the SunBlock team including project management and new enterprise development skills.
John completed a 12-month internship in the middle office team at Comgest asset

SUNBLOCK 26
management. His experience in working in teams in both the workplace and educational
environment will help SunBlock develop into a successful enterprise through product
innovation and business development. John is currently completing an MSc in E-commerce
which has allowed him to explore his passion for technology. He has a particular interest in
web development and emerging technologies such as Blockchain and this combined with his
desire to succeed, creative flair and excellent communication skills will help SunBlock to
become a successful global company.

Duties:

• Development and maintenance of company website.

• Developing SunBlock’s strategy for using technological resources.
• Evaluating and implementing any new technology systems and infrastructure.
• Track, analyse and monitor technology performance metrics
• Represent SunBlock’s technological agenda in all staff meetings.
• Communicating the benefits of the SunBlock platform to perspective communities.
• Development of negotiating strategies to on board new communities.
• Leading SunBlock’s research and development efforts.

Strengths:

• Self-motivated and Hard-working: This can be seen through Johns strong academic and
professional performance.
• Innovative Mindset: John is best when coming up with new business ideas and product
solutions. He was also involved in a start-up called FridgeChef during his final year of his
bachelor’s degree.
• Strong Communicator: This is portrayed by his ability to communicate ideas to potential
investors and customers.

Weaknesses:

• Short Term View: At times john can be too focussed on short term goals and not see the
bigger picture.
• Time Keeping: John finds it difficult to divide his time adequately between projects and
often finds him focusing on a particular project over others.

SUNBLOCK 27
Cillian Kirk – Chief Financial Officer

Cillian (23) completed his undergraduate degree in Business studies (management) at

Dublin City University and obtained a 2:1 degree. He is currently completing an MSc in E-
commerce. He developed key skills in two primary areas through his university years –
finance and business strategy for high technology firms. Cillian gained his finance skills
through accounting modules such as management accounting and financial accounting
while also working as an Accounting intern for MBSL. While modules such as business
strategy and high technology entrepreneurship helped shape Cillian’s knowledge around
business strategy for high technology firms. Being skilled in these two key areas will make
Cillian an effective CFO and sales manager for SunBlock as he understands the financial
position of the firm along with the technological position of the firm which is vital. All of this
combined with his meticulous attention to detail and exemplary presentation skills will help
drive SunBlock to the forefront of the energy industry. Cillian’s interests lie in data science,
cryptocurrency’s and blockchain technology.

Duties:

• Develop and implement SunBlock’s financial and tax strategies.

• Manage SunBlock’s capital request and budgeting processes.
• Report financial results to SunBlock’s board of directors on a quarterly basis.
• Understand and mitigate key elements of SunBlock’s financial risk profile
• Monitor cash balances and cash forecasts.
• Develop and implement SunBlock’s sales strategy.
• Achieve company growth and successfully hit sales targets.
• Build and promote strong customer relationships and identify new leads.
• Development of negotiating strategies to on board new communities.

Strengths:

• Attention to Detail: One of Cillian’s key traits is his attention to detail which was evident
while performing his role as an accounting intern.
• Presentation Skills: Cillian is an effective presenter and crowds nor pressure do not faze
him.

SUNBLOCK 28
• Negotiation Skills: Cillian has an excellent manner when it comes to negotiating which
makes him and ideal sales manager.

Weaknesses:

• Internal Communication: Cillian often overlooks internal communication and does not
update his peers on his project(s) progress.
• Self-motivation: Cillian struggles with self-motivation and is most motivated when
working on important projects.

SUNBLOCK 29
Market & Industry Overview
The Market

Market Size & Growth Rates

Globally, the solar energy market is expected to “reach [a worth] of $422 billion by 2022
from $86 billion in 2015, growing at a CAGR of 24.2% from 2016 to 2022” (Allied Market
Research, 2017). In Ireland, SEAI (2017b) estimate that the market is worth between €310 –
390 million per year. There are a number of factors that are driving this growth. Firstly,
despite energy efficiency measures, the demand for electricity continues to increase
(Deutsche Bank Securities Inc, 2015). Given that electricity is a critical enabler, access to
affordable and reliable energy is “fundamental to reducing poverty, improving health,
increasing productivity, enhancing competitiveness and promoting economic growth”
(Power Ledger, 2018). In both China and India, a large percentage of the populations have
attained access to modern energy through distribution networks. More people than ever
are now connected to ever-growing and interconnected electricity networks (Power Ledger,
2018). Secondly, more and more countries are witnessing grid parity. Finally, the cost of
many renewable energy technologies are decreasing.

Key Success Factors

According to Deutsche Bank Securities Inc. (2015), there are four primary key success
factors in the solar energy market.

1. Scale: The most successful companies are able to cost effectively scale the entire value
chain with many focusing primarily on scaling midstream parts. This is the result of cost
competitive and scalable technology solutions experiencing growth.
2. Capital: A significant advantage can come from accessing low cost capital, “especially as
growth will come from new markets with no established financing solutions’’ (Deutsche
Bank Securities Inc, 2015).
3. Technology: increased functionally is a significant differentiator, especially embedded
hardware and software. Furthermore, in the next few years, the biggest differentiator
for solar companies will be the integration of storage and energy management services.

SUNBLOCK 30
4. Diversification: As more and more policies are introduced to tackle the changing
environment, the companies best equipped to meet such policy’s will be those that are
diversified in terms of geography and segments. “Being overly dependent on one market
despite the significant size of the industry is not a good strategy” (Deutsche Bank
Securities Inc, 2015).

Trends

• The global market is diversifying but large countries such as China, India, the U. S and
Japan continue to dominate. These countries are expected to have a total market share
of 72% by the end of 2018, a drop of 10% since 2017 (Munsell, 2018).
• Tariffs imposed on imported solar cells and modules have led to a decrease in solar PV
installations in the residential and commercial solar segments, particularly in the U.S.
(Munsell, 2018). While this is meaningful, it is not destructive.
• Balance-of-system costs are going to be an important cost reduction driver. These
account “for the largest share of utility-scale PV project costs” (Munsell, 2018). These
however, are expected to decrease helping solar compete against other renewable
energy generators.
• An increasing amount of solar providers are integrating storage into their services
(Munsell, 2018).

Customer Analysis

With regard to the consumers present in the renewable energy and solar PV market,
outlined below are two consumer profiles that have been generated based on the primary
research conducted. Diagrams are used to illustrate what elements of SunBlock they will be
using.

Consumer Profile 1

Professional Peter – Age: 30, Male

Demographics: Single, income < 55k, lives in Dublin, Ireland (Suburban),

has a BA in graphic design, iPhone user, Has solar PV panels installed.

Role: UX designer in Sports Bet.

SUNBLOCK 31
Goals: To get promoted by the end of the year, maintain a healthy diet, actively contribute
in a sustainable manner in creating a cleaner planet.

Challenges: Eating healthy, utilising renewable energy, managing renewable energy

generation, promoting renewable energy use within his community

Scenario: Peter desires to promote renewable energy use in his own community and to be a
part of a self-sustaining community. Although many homeowners have expressed an
interest in creating a sustainable community and while some even have solar PV modules
installed, they lack the push needed to completely green and carbon neutral. A common
obstacle for those who wish to remain on the main grid is the cost. Thus, Peter contacts
SunBlock and enquires about installing the system throughout the community. The SunBlock
representative meets the community and discusses their concerns. Due to grid parity and
falling costs with regard to solar PV modules, storage and smart meters, the community’s
financial concerns are addressed. With the community on board, Peter becomes a prosumer
selling the renewable energy he has generated through the SunBlock platform.

SunBlock Trading Mechanism Buy & Sell Orders

SunBlock Token Transfer

Energy Exchange via Grid

SUNBLOCK 32
Consumer Profile 2

Homeowner Hannah – Age: 43, Female

Demographics: Married, mother, income < 80k, lives in Dublin

(Suburban).

Role: Mother, Senior accountant in KPMG.

Goals: To rely on purely on renewable energy so that her family can contribute
to a cleaner environment, be a role model to her children when it comes to clean energy
consumption and waste management.

Challenges: Understanding the logistics behind installing renewable energy systems, finding
the time to manage the family’s energy consumption,

Scenario: Hannah and her family live in a house that does not have solar PV modules
installed so she is currently relying on the grid for energy. Hannah is aware however that in
the years to come, it will be cheaper to become self-sustainable. Fortunately, the board of
the community in which she is based is promoting the use of SunBlock given that a new
housing developing has been completed and fitted with solar PV panels. With the SunBlock
community page developed and the infrastructure installed in the community, Hannah
creates her own personal account linked to the community page. Within weeks, Hannah is
now purchasing renewable energy.

SunBlock Trading Mechanism

Buy & Sell Orders

SunBlock Token Transfer

Energy Exchange via Grid

SUNBLOCK 33
Industry Analysis
Outlined below is an analysis of the industry in which SunBlock will operate in. Porter’s 5
Forces was utilised in order to access to level of competition within the renewable energy
industry. It draws from 5 industry forces in order to access the competitive intensity and
attractiveness of an industry for SunBlock. A PESTEL framework was also used in order to
provide an overview of the macro-environment elements that have the potential to affect
SunBlock’s immediate industry and competitive environment.

Porters 5 Forces
Threat of New Entrants
The threat of new entrants is moderate.
• Post 2020, the threat of new entrants
will increase as start-up costs will
decrease.
• There is no well-established market
leader with regard to P2P energy trading
which is encouraging for new entrants
Threat of Substitute Products/Services
The threat of substitute products/services is
moderate.
• Conventional energy providers do not
offer the same benefits that SunBlock
can.
• There are a number of renewable energy
generators available but grants are not as
widely available when compared to solar.

Rivalry among Competing Forces

The intensity between rival companies in the renewable energy

industry is low.

• There are a small number of competitors offerings

similar services in the global market
• There is the possibility of creating a competitive
advantage through SunBlock’s unique selling point,
P2P trading.

Bargaining Power of Suppliers Bargaining Power of Buyers

The bargaining power of suppliers is The bargaining power of buyers is low.
moderate.
• Investing in solar can be very expensive.
• There are a low number of high quality There is also high switching costs.
suppliers for certain elements such as
batteries. However it is expected that
this number will increase as
manufacturing costs decrease and the
industry becomes more profitable.

SUNBLOCK 34
PESTEL Analysis
Political Factors

State and Government bodies globally are becoming increasingly concerned with
environmental protection and implementing measures to address this issues associated
with it. In particular, the EU has ambitious plans for reducing pollution and protecting the
environment over the next 3 decades and as a member state Ireland will have to abide by
these policies otherwise they will face punishments such as large penalties (European
Commission, 2018). Ireland is already set to miss its 2020 targets and as a result faces
penalties that could run into the hundreds of millions. Taoiseach Leo Varadkar has already
publicly said that “There will be a big focus on climate change and the things that can be
done in the next 10 years to enable us to meet our commitments” (Irish Times, 2018).
There is an expectation that the Irish Government will become much more involved and
push for renewable energy adoption in the years to come in order to avoid future penalties
and public anger.

Economic Factors

The Irish economy is predicted to continue experiencing growth over 2018 and 2019
respectively. The European Commission has forecasted growth of 5.7% in 2018 and 4.1% in
2019 (Irish Times, 2018). These robust economic growth predictions are encouraging for
Irish consumers and businesses and mean that Ireland will continue to be seen as a
favourable place to conduct business in the coming years on the global stage. These figures
are complemented by other predictions by the European Commission in relation to GDP as
it is predicted to rise by 4% in 2019 and also consumer spending is expected to continue
increasing (Irish Times, 2018).

Social Factors

A societal change that it impacting the renewable energy industry it changed consumer
values and priorities. Consumers are also becoming much more aware of their carbon
footprint and their impact on the environment locally, nationally and globally. Consumers
are examining aspects of their lives where they can make a change in order to protect the
environment such as recycling, vehicle selection and renewable energy. These changing
customer values will impact consumer buying patterns in the future in relation to

SUNBLOCK 35
investment in renewable energies such as solar energy instead of being reliant on fossil
fuels.

A big issue that is facing Irish society is the housing shortage that it is going to experience in
the future as the demand for new houses massively outweighs the supply available. The
Irish government released its National Planning Framework which was designed in order to
deal with the housing shortage. The Central Statistics Office estimates that the population
in Ireland will increase by one million by 2040 and the Irish Government used those figures
in the design of their framework to cope with the housing requirements. They predicted
that an additional 25,000 houses will be needed to be built annually between now and 2040
to cope with the increase in population (Government of Ireland, 2018). This estimation is
toted to be passive by some critics and is estimated to be closer to 30 - 40,000 so SunBlock
is in a prime market to grow its customer base as more new housing developments and
communities develop (Irish Times, 2018).

Technological Factors

Solar technologies are experiencing a continual fall in costs as the technology improves (See
Figure 3). The ability of PV panels to generate more solar energy 24 hours a day and the
increasing capacity of lithium-ion batteries to store electricity are just some of the ways that
solar technology is experiencing change. The solar industry also faces intense price
competition that is leading manufacturers to develop new chemistries and improved
processes to reduce production costs (Bloomberg, 2017). The continual fall of prices and
improvements in quality is positive for SunBlock as solar is predicted to become more
popular and accessible in the future.

SUNBLOCK 36
 Figure 3 - Solar’s Price Plunge (Bloomberg, 2014)

Environmental Factors

Global warming is an issue facing society that many governments, organisations and
individuals around the world are taking action against in order to protect the environment
for future generations. Global warming will have a big influence on the development and
growth of SunBlock in the future as the different segments of society take action in order to
address the elements that are contributing to it such as the use of fossil fuels instead of
renewable energy. The expected rise in adoption of solar energy will be vital to the
continued growth of SunBlock in the future.

Legal Factors

Grants are becoming more widely available to households and businesses that are
interested in installing renewable energy solutions in Ireland. The increased number and
value of grants available to households will be important to the success of SunBlock moving
forward especially over the next few years as solar technology continues its fall in cost to
becoming more affordable for households. In particular a new scheme launched in July
2018 that provides grants of up to €3,800 to support the installation of solar PV panels and
battery storage systems (SEAI, 2018).

SUNBLOCK 37
In California it has been made a legal requirement that every home built after 2020 must
have solar panels. It is an ambitious building code change in a broader transition away from
centralised power (New York Times, 2018). This law change is something that would benefit
SunBlock greatly in the future if it was implemented in markets that it operates within as it
would vastly increase our target audience.

SUNBLOCK 38
Competitor Analysis
To gain a greater understanding of the market in which SunBlock will operate in it is vital to
perform a competitor analysis which looks at both direct and indirect competitors and a
national and international level. The primary objective of a competitor analysis is to gain
enough knowledge about the firm’s competitors in order to formulate the firm’s
competitive strategy to take into account the competitors likely actions and responses
(Czepiel & Kerin, 2009). By identifying your competitors, where they are positioned in the
market, their product offering and competitive advantage it will then be easier for SunBlock
to differentiate itself within the market and create a sustainable competitive advantage. As
the both the blockchain P2P energy trading market and the blockchain based energy
generation, storage and consumption market and in their infancy, there is significant
opportunities for SunBlock in these markets should the company be positioned intelligently
with a Unique Selling Point (USP) which provides value for users.

Direct Competitors

EnerPort (Ireland)

The EnerPort project launched in Cork this year which looks at allowing Irish consumers to
gift or sell their solar power to neighbours. It is a result of new partnership between the
Galway Insight Centre for data analytics and the International Energy Research Centre
(Faller, 2018). They are currently Investigating how technologies such as blockchain and the
IOT can provide a platform which enables companies and consumers to trade renewable
energy on a regional and national scale (IERC, 2018). At present EnerPort are the only Irish
company looking to bring a similar product to SunBlock to the market.

SunContract (Slovenia)

SunContract allows individuals to freely buy, sell or trade electricity. Homeowners can also
choose the price at which they purchase or sell electricity. Sun Contract is the world’s first
P2P energy trading company operating on a national scale through existing grid
infrastructure. They are currently operational in Slovenia with plans to expand into other
European nations. As a result of the platform Slovenian households are currently witnessing
electricity cost reductions of up to 40% while also choosing environmentally friendly energy

SUNBLOCK 39
sources (SunContract, 2018). These cost reductions are seen to be the source of competitive
advantage for SunContract. The platform uses an Ethereum based token called SNC to
facilitate transactions on the platform (SunContract, 2018).

The primary goal of SunContract is to allow small-time renewable energy producers the
opportunity to no longer sell to major traders and energy grids at prices which they have no
control over along with promoting the use of renewable energy. Now these small-time
producers can sell directly to other individuals at higher prices which still result in cost
savings for the individual who is buying the renewable energy (Madore, 2018).

Power Ledger (Australia)

Power Ledger allows for P2P energy trading but has much more to it than just that with
many different applications in the works for when the platform launches- which is predicted
to be the end of 2019 (Power Ledger, 2018). Power Ledger is the closest competitor to
SunBlock in terms of its product offering as it offers different applications which are focused
on smart demand and supply management, Autonomous asset management and electrical
vehicle solutions.

The Power Ledger platform will use a frictionless trading token called Sparkz while the
Power Ledger Token (POWR) will be the fuel of the ecosystem with bespoke private trading
applications creating Sparkz in exchange for POWR. Sparkz are currently purchased and
redeemed using fiat currencies on individual trading platform (Power Ledger, 2018).

Power Ledger will have many distinct advantages to users of their platform which include:

• Improved economics for solar energy creation and battery storage.

• Easier access to low-cost renewable electricity.
• Decreased wastage of electricity in transmission.
• Fixes the split incentive problem with multi-tenanted properties.
• Provides a platform for community-owned generation or storage of renewable energy
(Sessa, 2018).

LO3 Energy (USA)

LO3 energy are a self-defined transactive energy company which successfully built the
world’s first off grid blockchain microgrid (Merchant, 2017). This microgrid was built in

SUNBLOCK 40
Brooklyn as a demonstration project where citizens can buy and sell locally produced PV
power from one another (Papajak, 2018). LO3’s core platform called exergy revolves around
peer-to-peer energy trading on community microgrids where blockchain is used to verify
the transactions (Merchant, 2017). Although there are four main components of the LO3
energy exergy platform with the other 3 delving more into the areas of smart demand and
supply management and electrical vehicles which areas SunBlock will also operate in. Below
are the four main components:

1. Peer-to-Peer: This component allows prosumers who generate excess energy through
their own renewable resources to transact this energy autonomously in real time with
consumers on the platform (LO3 Energy, 2018).
2. MicroGrid: LO3 energy will create microgrids which are an ecosystem of connected
prosumer and consumer energy assets. Energy is generated, stored and transacted
locally (LO3 Energy, 2018).
3. DSO: The platform allows the distributed system operator access to consumer data,
using price as a proxy the DSO can manage energy use, load balancing and demand
response at negotiated rates (LO3 Energy, 2018).
4. EV: When an electrical vehicle charging station or an electrical vehicle has an excess
supply of energy, it can be made available for purchase on the local network. Consumers
can set budgets and be alerted to availability via the mobile app (LO3 Energy, 2018).

Grid + (USA)

Grid + is a system which claims to bring big savings to home energy use and opens up
opportunities to give back to the grid. Blockchain technology is used to automate payment,
cutting administrative costs. A smart agent device is required to use the Grid+ platform and
it makes real-time power purchasing decisions which gives users access to the most cost-
effective rates available (Grid +, 2018). At present Grid + lies somewhere between an
indirect and direct competitor for SunBlock as they system in its present form is focused on
optimising household’s interactions with the energy grid but also used blockchain
technology for smart demand and supply management. In the future according to the Grid +
whitepaper customers will be able to utilise Ethereum to facilitate the exchange of energy
directly in a peer-to-peer manner similar to SunBlock (Grid +, 2018).

SUNBLOCK 41
The smart agent has Grid+ smart agent has three primary functions which include:

1. Dynamic Market Switching: This involves switching between multiple energy markets,
optimizing for lowest price.
2. Automated Usage Reduction: The smart agent controls smart home devices such as a
smart thermostat and reduces consumption by avoiding usage when the price of energy
rises.
3. A Green More Efficient Grid: The smart agent helps reduce strain across the grid by
reducing individual energy consumption and by selling excess stored energy back when
the market most needs it (Grid +, 2018).

Indirect Competitors

Sonnen Batterie (Germany)

In combination with a PV System the Sonnen Batterie allows households to store the solar
energy which they produce and optimise its use. The Sonnen Batterie supply’s solar energy
during the night time using the stored solar power that is generated during the day. Sonnen
Batterie will allow households to cover about 75% of yearly energy requirement. The Energy
supply can be viewed and monitored through a mobile application (Sonnen Batterie, 2018).

The Sonnen Batterie is considered an indirect competitor to SunBlock as it only carries out
one of Sunblock’s two main activities. Which is smart demand and supply management
which it does through storing excess solar energy in the Sonnen Batterie and use it when
necessary for load balancing.

Kingspan (Ireland)

One local indirect competitor is Kingspan who offer energy store battery solutions which
enable customers to gain a better return on renewable energy systems as it allows for
storage of the surplus energy produced in a similar manner to Sonnen Batterie. This helps
improve on supply and demand management. It is essentially a smart controller which helps
you manage and take control of the energy you have generated, used and stored (Kingspan,
2018).

SUNBLOCK 42
Although the Kingspan battery solutions may be the most basic covered in this competitor
analysis it is certainly a viable option for homeowners as along with storing the excess
energy it also measures how much energy your renewable energy resource creates, how
much you have used and how much you have stored (Kingspan, 2018).

Tesla PowerWall (Worldwide)

The PowerWall is a wall-mounted battery which is only the size of a fridge door and it can
be installed both inside and outside the home. The way it works is that a number of
electrical current sensors monitors a home’s energy usage including how much solar energy
is produced, while Tesla’s smart forecasting software predicts future usage and production
in order to improve smart demand and supply management (Woollacott, 2018).

A Tesla spokesperson stated that "As Powerwall learns, you get the most value from your
solar production without having to change how or when you use energy" (Woollacott,
2018). Tesla certainly seems to be leading the way in smart demand and supply
management with PowerWall. At present one PowerWall along with supporting equipment
retails at €7’100 and this does not include installation costs which are estimated around at
least €3000 (Tesla, 2018). This price may be a stumbling block for some customers as it
could take years to see return on the investment. This is where the idea of battery farms
gives SunBlock an edge as this cost for storing energy could be reduced drastically and
installation costs could be avoided.

Brand Positioning Map

Below is a brand positioning map which shows where both SunBlock and all competitors
analysed rank in terms of peer-to-peer energy trading and smart demand and supply
management.

Scale: 0-5. 0 = zero functionality. 5= Top functionality.

SUNBLOCK 43
 6

4
P2P Energy Trading

0
0 1 2 3 4 5 6
-1
Smart Demand and Supply Management

EnerPort SunContract PowerLedger LO3 Energy Grid+

Sonnen Batterie Kingspan SunBlock PowerWall

SUNBLOCK 44
Business Strategy

Mission Vision & Values

The purpose of SunBlock is to create a platform that will enable peer-to-peer trading
between consumers and communities. The vision of this venture is to enable consumers to
take control of their energy production and needs in turn becoming self-sustainable and
more environmentally friendly. SunBlock’s vision also involves the evolution of the
renewable energy industry as new technologies allow the consumer to take more control of
their energy needs and place less responsibility on traditional providers to control every
step of the process. SunBlock aims to an energy industry that is more transparent,
environmentally friendly and community focused.

Business Model
The following sections outline how SunBlock will transform its vision and values into value
for the customer in the future. The Lean Business Model Canvas has been utilised in order
to organise the key elements into an understandable format.

Problem

The top problems that were identified are:

1. Solar energy producers not being benefited properly for their excess energy.
2. Solar energy producers not being able to manage their solar energy adequately in terms
of selling when price is high and storing when price is low.

Solution

The solutions that were identified to cope with the above problems are:

1. A platform that allows users to conduct peer-to-peer trading and receive a fair price for
their excess electricity.
2. Smart demand and supply management function.

SUNBLOCK 45
Unique Value Proposition

SunBlock’s unique value proposition is that we can provide a platform that allows
communities and households to become self-sustainable and utilise a number of services
that can help them better manage their energy needs and production. SunBlock can also
provide customers with a potential new source of income in the form of selling excess solar
energy that they produce to other SunBlock users within their community. SunBlock wants
to change how energy has been operated and managed in the past and make it into a more
community-focused approach to go green instead of a reliance on a national scale.

Key Metrics

Amount of Solar Electricity traded on SunBlock: A key number for SunBlock is the amount of
solar electricity that is being traded between members on the SunBlock platform. This is an
important metric that shows that the customers are using the platform to generate
additional income for their household which is a key value proposition for SunBlock.

Increased Use & Satisfaction of SunBlock Features: The increased use of SunBlock features
such as using Electric Vehicles as charging points is an important metric that will enhance
the value of the SunBlock to users and it will become increasingly valuable in the future as
EVs become more affordable and popular. This metric will be measured by issuing a survey
to existing SunBlock members in order to ascertain the success of SunBlock features.

Customer Segments

SunBlock’s target customers will be as follows:

New Housing Developments: Households seeking to purchase or rent homes in new housing
developments will be SunBlock’s ideal target customers. These new developments will have
sufficient infrastructure such as PV panels and infrastructure in order to install the SunBlock
platform at the lowest cost to the business. These households will be motivated to be more
self-sufficient and green and want to manage their energy needs and production better
through a number of SunBlock services. As mentioned under the Industry Analysis the Irish
Government released its National Planning Framework which entails that 25,000 new
homes will be built per annum until 2040 to cope with the rise of one million people that

SUNBLOCK 46
Ireland is expected to experience over the next 2 decades (Government of Ireland, 2018).
These new developments would be SunBlocks ideal target customer moving forward.

Existing Housing Developments: This segment will be also be a segment that SunBlock will
target but not in the immediate future. After year 3 SunBlock will it will be more feasible to
target existing large and small communities due to a number of market drivers. As the
prices of solar PV panels and infrastructure fall and become more openly available and
appealing to existing households and developments to invest in, then SunBlock will more
actively target these potential customers.

Revenue Streams

Subscription Fees: SunBlock’s planned revenue stream will come from a subscription fee that
will be charged to each customer on a monthly or yearly basis to use the platform and its
various features. A further breakdown of this subscription fee that will provide households
with cost savings on the average household electricity bill in Ireland is provided below.

Pricing
This subscription fee will include the costs for expensive elements of the system such as
smart meters and lithium ion batteries for each household. A subscription fee that allows
SunBlock to absorb these costs but the cost of a yearly subscription to a SunBlock customer
who is a prosumer will be €800 and €400 for a customer who is only a consumer within a
community. This will be a flat rate subscription fee. This subscription can be paid on a
monthly or yearly basis.

This price was agreed upon as it allowed SunBlock to absorb the high initial procurement
costs of solar batteries (€30,000) and smart meters (€5,000) for each community and make
those costs back over the next few years. This is being done in order to make the SunBlock
platform more attractive to potential customers.

Finally this subscription fee allows SunBlock to recoup its losses on each community at the
end of year 2 while still offering customers who are prosumers savings of over €200 on the
average cost electricity bill in Ireland and access to a platform that allows them to
potentially increase those savings by selling excess solar energy that they produce (Switcher,
2018).

SUNBLOCK 47
Cost Structure

The main expenses for SunBlock are:

• Battery purchases
• Smart meters purchases
• Salaries
• Marketing & Advertising
• Amazon Web Services
• Loan Repayments

(See Financials Notes for full breakdown of expenses).

Unfair Advantage

As a first mover in the Irish market SunBlock will seek to develop strategic relationships with
bodies such as the Sustainable Energy Authority of Ireland (SEAI) in order to further
strengthen and market our position in the Irish market as an alternative energy
provider. The development of key relationships will be important to ensure the growth of
the business and deter similar businesses from competing with an already well-established
and connected company.

Channels

SunBlock will utilise a number of inbound and outbound marketing channels in order to
reach its target audience such as its website, SEO and Search Engine Advertising. These
various channels are discussed in further detail under the Marketing Strategy Section.
SunBlock recognises the need to target and advertise to the appropriate audience in order
to convert leads in sales and these various channels have been carefully selected as
SunBlock wants to have a good balance between the customers that are obtained through
organic and paid channels.

SUNBLOCK 48
Marketing Strategy
This section details the business-to-consumer marketing strategy of SunBlock that will
effectively communicate the value proposition to the target market and help achieve the
revenue objectives of the business.

Target Market
Under the Business Strategy section the customer segments that SunBlock will target
moving forward are discussed in detail. SunBlock has identified new housing developments
as it’s ideal target audience in the immediate future and as market drivers impact the cost
of solar existing communities will become targets of SunBlocks marketing efforts. SunBlocks
ideal target customer is an individual or household that is conscious of their environmental
impact and motivated to be green and/or self-sustainable. They are aware of the impact
fossil fuel use has on the environment and see renewable energy as an easy alternative and
good investment. They have the funds to invest in a solar PV system and are also motivated
by the cost savings that are associated with it. SunBlock would present them with an
opportunity to make more efficient use of their solar energy through its features while
providing them with an additional source of income.

Marketing Objectives

Build Brand Awareness

Increasing the brand awareness is a key objective of SunBlock as it can lead to increased
numbers of customers and lead generation. It is also important that targeted customers
recognise SunBlock as a first mover in this area and moving forward will feel more
comfortable associating with SunBlock over other organisations as more move into this
area.

Lead Generation

The ability of SunBlock to be able to generate leads and convert them into sales and grow
our customer base will a key objective in relation to marketing campaigns and will be a
factor in determining the success of those efforts. This is a primary objective of SunBlock’s
marketing efforts and will be measurable in costs per lead (CPL).

SUNBLOCK 49
Grow Market Share

Increasing SunBlock’s market share in the Irish electricity market is a key objective as it will
improve the legitimacy of the brand and encourage new communities and individuals to
consider SunBlock as a potential energy provider.

Thought Leadership

Being recognised as an expert or first mover in the area of decentralised energy trading
would increase the prestige and credibility of SunBlock as a brand. This recognition would
also help reduce some consumer objections or concerns they may have about SunBlock as
an alternative energy provider.

Market Drivers
There are a number of market drivers that will drive consumers to join the SunBlock
platform over the next number of years. The secondary research that was conducted
identified a number of market drivers and the primary research that was conducted backed
up the findings from the desk research.

Falling Costs of Renewable Energy

The cost of solar energy has fallen consistently over the last decade and this is predicted to
continue as the technology continues to be developed and improve. A study conducted by
the International Renewable Energy Agency (2017) found that PV solar panels prices have
fallen by around 80% since 2010. This steady fall in costs will encourage households and
communities to adopt renewable energy technology to capture some of the associated
green energy savings.

Increased Government Push for Renewables

The Irish Government faces fines of €600 million a year from the EU as a result of failing to
meet renewable energy targets set out in the EU Renewable Energy Directive (Irish
Independent, 2018). Ireland is set to miss it’s 2020 targets but it also has more ambitious
targets which have to be achieved by 2030 such as reducing emission levels by 30%
compared to 2005 emission levels (European Commission, 2016). It will be in the Irish
Government’s interest to incentivise the adoption of renewable energy in Ireland and

SUNBLOCK 50
SunBlock will seek to take advantage of the increased government interest in renewable
energy.

Increasing Consumer Awareness

Consumers and businesses are becoming increasingly aware of their environmental impact
and this has led to industries having to evolve in order to accommodate changing consumer
attitudes and values. A study conducted by Deloitte (2018) found that this increased
consumer awareness and interest in the environment will lead to a continued push by
businesses and consumers for cleaner energy in the future.

Marketing Mix

Product

SunBlock will offer an online platform that will enable its customers to conduct peer-to-peer
energy trading within a community along with a range of additional services such as smart
demand management. An innovative and rewarding product coupled with high quality
customer service will be key attributes to attracting and retaining customers. The benefits
to the consumer are that they will be able to reduce their electricity costs, potentially gain
an additional channel of income through the sale of excess solar energy and become self-
sustainable.

Price

SunBlock will operate on a flat rate subscription basis for each customer. Customers can
choose to pay on a monthly or yearly basis. Each customer will have access to the services
offered on the SunBlock platform and a price of €800 a year for a household who is a
prosumer within a community and €400 for an household that is only a consumer has been
agreed to be a fair price that allows SunBlock to cover the high costs associated with solar
batteries for each home and still provide households with over €200 in savings for
prosumers and potentially higher savings for consumers on the average cost electricity bill
in Ireland (Switcher, 2018). SunBlock will hopefully be able to lower its prices in the future
offering further savings to customers as solar technology develops and reduces in price.

SUNBLOCK 51
Place

The SunBlock platform will be both web and mobile application based. The website will be
the main point of contact with customers. It will contain all the relevant information and
services required for potential and existing customers. The mobile application will be
available free to download from the Apple App Store and Windows Marketplace. It will
contain a portal similar to the website where registered customers can access the SunBlock
platform. The management of the SunBlock platform and other related functions would be
managed from SunBlock’s Dublin offices.

Promotion

SunBlock will seek to promote its platform through directly engaging with potential
customers through a variety of channels that are detailed in the Marketing Implementation
section below. SunBlock will also seek to continually promote its product through engaging
with groups and communities interested in sustainability and renewable energy. These
groups can be utilised as an avenue to engage with potential customers and also building
rapport and trust with these groups will help SunBlock build credibility with potential
customers.

Marketing Implementation
SunBlock will deliver a coherent and concise message across all marketing platforms in
order to convey attributes such as trustworthiness, credibility and legitimacy. It is
imperative that the messages communicated to consumers are engaging and easily
understood in order attract consumers to the ideas and purpose of the SunBlock
platform. A variety of channels and media will be utilised in order to engage SunBlock’s
target audience effectively. The marketing efforts of SunBlock will require consistent action
in terms of assessment in order to ensure that these efforts are helping SunBlock reach its
marketing objectives and not resulting in low quality lead generation.

Marketing Channels

Marketing Tools Responsibility

SUNBLOCK 52
 SEO In-House Marketing & IT

Social Media Platforms In-House Marketing

Google AdWords In-House Marketing

Email Marketing In-House Marketing

Events In-House Marketing & Sales

Search Engine Optimisation (SEO)

Search Engine Optimisation has become an effective marketing method for businesses that
are attempting to attract their target audience through the careful selection of content and
design of their website. SunBlock will attempt to leverage SEO in order to place highly in
search engine results pages (SERP) for searches that have been identified as potential
searches by target customers and that are relevant to the SunBlock platform and
brand. SEO does overlap with other marketing tools such as Google AdWords but the
SunBlock team is aware that for SEO to be successful it will require a long-term effort
focused on content and the consumer.

Social Media

Having a presence on social media platforms such as Facebook, Twitter and Instagram and
producing content that engages SunBlock’s target audience is an important marketing tool
that SunBlock will seek to take advantage in order to develop relationships with consumers
and convey brand messages and values. It is a powerful tool that businesses are using in
order to engage with their target market on a more personalised and informal level and can
be an optimal channel for accomplishing a variety of marketing objectives.

Google AdWords

Google AdWords is a popular marketing tool that SunBlock will utilise in order to gain
favourable positioning on certain search engine result pages (SERP). Google AdWords
provides a business like SunBlock with the opportunity to bid on words and phrases that
they would like to appear above the organic searches on a SERP. Google AdWords operates

SUNBLOCK 53
a pay-per-click model which is a cost-efficient pricing model related to performance.
SunBlock recognises that Google AdWords marketing campaigns are a marketing tool that
should be employed in the short term and focus on generating organic searches in the long
run. Google AdWords does however provide SunBlock with the opportunity to target
searches that would hopefully drive traffic from potential customers to the website.

Events

SunBlock will look to take advantage of a variety of events to promote and market the
SunBlock platform to its target audience. Events present an excellent opportunity to market
a product to a specific group of individuals who have a common interest. It is commonplace
that a fee is required from a company to have a stall at an event but it is a great opportunity
to reach a large number of potential customers over a short period of time. The types of
shows that SunBlock would be targeting would be home improvement shows or renewable
energy shows. Below are the names of some shows SunBlock would consider to be viable:

- Permanent TSB Ideal Home Show, Dublin

- Irish Renewable Energy Summit, Dublin
- Love Your Home Show, Belfast

Email Marketing

Email marketing can be a valuable tool when used effectively that can attract customers,
encourage customer loyalty and help develop and foster relationships with stakeholders
such as customers (Carmen & Nicolae, 2010). SunBlock will utilise email marketing to reach
its target market and accomplish its marketing objectives. It can be a relatively low cost
marketing method compared to others but SunBlock is aware that overuse can be
burdensome of users so effective and appropriate use is important.

SUNBLOCK 54
Financial Forecast
Sales

Year 1 (2019)

In year 1 SunBlock will focus on developing the technology necessary to implement the
system while also recruiting communities for launch in 2020. The reason for this is that
SunBlock has made the decision to hold off rolling out the platform until the grid
infrastructure in Ireland has progressed to a level where it can handle the SunBlock system
and its P2P trades.

Year 2 (2020)

At the start of year 2 SunBlock will have 8 communities ready to go on their platform. The
SunBlock management team have already made contact with 8 different community regions
which are interested in the platform. These include; Thomastown, Arann Islands, Tallaght,
Athboy, Ballineasoaig, Bellclare, Multyfarnham and Sneem.

Within these community regions SunBlock will target newly built housing developments.
This is the plan for the first three years as these will have PV panels already installed and
with the current price of PV panels supplying these too new communities would drive the
price up dramatically. SunBlock has predicted that these new housing developments will
contain approximately 100 households. 8 communities have been targeted as the
installation costs associated with on boarding a community are quite high and SunBlock is
wary of using all of our cash reserves. Sunblock’s sales staff will work on onboarding new
communities for 2021 during this year.

Year 3 (2021)

10 new communities will be added to the SunBlock platform from the start of 2021 bringing
the total number of communities up to 18. These additional communities will be recruited
from new and existing interested community regions These new communities will also be
new housing developments with an average of 100 households. Each year SunBlock will
employ additional sales staff and increase the marketing budget in order to onboard new
community’s.

SUNBLOCK 55
Sales Assumptions

• A subscription fee of €800 will be charged for a user who is a prosumer and a consumer.
• A subscription fee of €400 will be charged for a user who is only a consumer.
• 20% of individuals in a community on average will be only a consumer.
• This equates to €72’000 in revenue per year for a community with 100 households

Anticipated Sales Projections

Communities No. of Households Revenue

Year 1 0 0 €0.00

Year 2 8 800 €576,000.00

Year 3 18 1,800 €1,296,000.00

Best Case Sales Projections

Communities No. of Households Revenue

Year 1 0 0 €0.00

Year 2 10 1,000 €720,000.00

Year 3 20 2,000 €1,440,000.00

Worst Case Sales Projections

Communities No. of Households Revenue

Year 1 0 0 €0.00

Year 2 6 600 €432,000.00

Year 3 12 1,200 €864,000.00

Targeting Large Communities

Large communities are the only communities targeted in the first three years of SunBlock
primarily because they offer the greatest margin for SunBlock and will allow us to optimise
our financial performance in the first three years. This will allow SunBlock to then invest
heavily in marketing and sales and R&D to gain a much larger customer base and continue
to the develop the SunBlock offering. Both medium and small communities will then be

SUNBLOCK 56
targeted from year 4 onwards. Below is a comparison showing the margins which SunBlock
will make off each size of community.

Large Community Medium Small Community

(100) Community (50) (30)

Costs

Batteries €30,000. €15,000.00 €9000.00

Smart Meter €7,500.00 €3,750.00 €2,250.00

Total Cost €37,500.00 €18,750.00 €11,250.00

Revenue

Subscriptions Fees €72,000.00 €36,000.00 €21,600.00

Profit/Loss €34,500.00 €17,250.00 €10,350.00

Cash Flow Forecast

Outlined below is a cash flow for both the best case and worst case sales scenarios. For a full
breakdown of the expenses included in these cash flows and the financial assumptions
please refer to ‘Financial Notes’ in the Appendices section.

Best Case Cash Flow Projection

2019 2020 2021

CASH RECEIPTS

Subscriptions 576,000 1,296,000

Total Cash from Sales 576,000 1,296,000

Loan 75,000

Investment Capital 75,000

Investors 100,000

SUNBLOCK 57
 SEAI Grant 200,000

Enterprise Ireland 50,000

Total Cash Receipts 175,000 901,000 1,296,000

CASH DISBURSEMENTS

Batteries 240,000 540,000

Smart Meters 60,000 135,000

Rent 24,000 30,000 30,000

Phone-line & Broadband 792 792 792

Company Insurance 1,429 1,429 1,429

Consultancy Fees 10,000 12,000 12,000

Salaries 43,333 200,000 335,000

Employee PRSI 4,341 13,023 32,558

Loan repayments 15,000 15,000 15,000

Marketing & Advertising 8,000 9,000 20,000

Copyright & Patent Fees 1,510

Token Exchange Listing 20,000

Amazon Web Services 6,000 8,000 16,000

Selling and Administration 2,004 4,000 6,000

Total Cash Disbursements 116,409 613,244 1,143,779

Opening Cash Balance 58,591 303,053

Cash Receipts 175,000 901,000 1,296,000

Cash Disbursements 116,409 613,244 1,143,779

Net Cash Balance before tax 58,591 346,347 455,274

Corporation Tax 43,293 56,909

SUNBLOCK 58
 Net Cash Balance after tax 58,591 303,053 398,365

Worst Case Cash Flow Projection

2019 2020 2021

CASH RECEIPTS

Subscriptions 432,000 864,000

Total Cash from Sales - 432,000 864,000

Loan 75,000

Investment Capital 75,000

Investors 100,000

SEAI Grant 200,000

Enterprise Ireland 50,000

Total Cash Receipts 175,000 757,000 864,000

CASH DISBURSEMENTS

Batteries 180,000 360,000

Smart Meters 45,000 90,000

Rent 24,000 30,000 30,000

Phone-line & Broadband 792 792 792

Company Insurance 1,429 1,429 1,429

Consultancy Fees 10,000 12,000 12,000

Salaries 43,333 200,000 335,000

Employee PRSI 4,341 13,023 32,558

Loan repayments 15,000 15,000 15,000

Marketing & Advertising 8,000 9,000 20,000

Copyright & Patent Fees 1,510

SUNBLOCK 59
 Token Exchange Listing 20,000

Amazon Web Services 6,000 8,000 16,000

Selling and Administration 2,004 4,000 6,000

Total Cash Disbursements 116,409 538,244 918,779

Opening Cash Balance 58,591 242,678

Cash Receipts 175,000 757,000 864,000

Cash Disbursements 116,409 538,244 918,779

Net Cash Balance before tax 58,591 277,347 187,899

Corporation Tax 34,668 23,487

Net Cash Balance after tax 58,591 242,678 164,412

SUNBLOCK 60
Risk Assessment
In order for SunBlock to be successful a comprehensive risk assessment must be performed
by focusing on key areas of risk such as business, technological, financial and company
specific risk. Zwilling (2014), an active angel investor, states that “there is no real business
opportunity without risk” and while risk is an ever present for start-ups it is important to
identify potential risk and take steps towards mitigating them before the risks are realised.
Given the emerging nature of blockchain technology, and cryptocurrency’s which are a
fundamental element of SunBlocks business model coupled with the statistics that 60% of
start-ups fail (Griffiith, 2017) it is crucially important for SunBlock to identify the threats to
which the company may be exposed too. Risk control processes such as a risk assessment
are deemed essential in the volatile scenario of technological innovation in which SunBlock
is operating. (Teberga et al., 2018) By carrying out this assessment and identifying the risks
and threats along with taking steps to mitigate them, SunBlock will be focused on
preventing these risks occurring but also be ready to respond to these risks should they
become a reality.

Business Risks

Competitors

Risk Level – Medium.

Impact: SunBlock has identified many direct and indirect competitors which will be
competing with the company on a national and global scale. The emerging nature of
blockchain based P2P energy trading and smart demand and supply management industry’s
and increased interest in renewable energy will ensure that competition levels will be high
for SunBlock.

Mitigation Strategy: With both blockchain based P2P energy trading and smart demand and
supply management are relatively new concepts with many companies still in the early
stage of development there is a massive opportunity for SunBlock. By operating off grid
initially SunBlock has the opportunity to gain early mover advantage in the Irish market, but
in order to be successful this is not enough SunBlock must also differentiate itself from
competitors through a competitive advantage. At present SunBlocks competitive advantage

SUNBLOCK 61
will be its combination of both P2P energy trading and smart demand and supply
management, this can be seen in the brand positioning map in the competitor analysis. This
competitive advantage will not last indefinitely so it is important for SunBlock to bring new
applications to the market in the future.

Attracting Communities

Risk Level – Low/Medium.

Impact: With energy self-sufficient communities a new concept and relatively uncommon at
present it may be challenging to attract communities to the SunBlock platform.
Endorsements from relevant renewable energy authorities along with the results of a test
micro-grid will be beneficial in attracting these communities.

Mitigation Strategy: Initially SunBlock will have to run a test micro-grid in a community to
show that the service works, is of a high quality and results in cost savings for members of
the community. This will allow SunBlock to back up the claims made about the service. Next
SunBlock’s management team will look to partner with renewable energy and smart grid
focused projects such as Aran Islands renewable energy Ltd and the Tallaght smart grid
project. By partnering with this type of project SunBlock will be able to implement the
service in a large number of communities.

Business Interruption

Risk Level – Low.

Impact: SunBlock’s business could be interrupted by a variety of different issues cantered

around an inability of staff to work from the company office such as an electricity outage or
fire. Natural disasters are uncommon in Ireland but this too must be considered when
SunBlock expands operations globally. Interruption to SunBlock’s suppliers is an area which
also must be considered.

Mitigation Strategy: In order to mitigate against this risk, it will be considered in SunBlock’s
business continuity plan. SunBlock will need to have an alternate office space ready should
staff have to leave the existing office for any reason because any delay in SunBlock staff
carrying out their roles could be detrimental to company performance. SunBlock will also
draw up a list of alternate suppliers in case their original supplier’s business is interrupted.

SUNBLOCK 62
Technological Risks

Managing Technical Competency

Risk Level – Medium.

Impact: The likelihood of a technological risk occurring is increased as SunBlock’s

management team all come from business backgrounds and not computer science related
backgrounds. This lack of technological knowledge will mean that SunBlock will have to
source technical expertise externally while the management team will also have to upskill.

Mitigation Strategy: In order to mitigate this risk SunBlock will need to employ a software
developer specialising in blockchain technology to aid in the development of the backend of
the SunBlock system. The team will look to utilise their technical skills to develop and
maintain the company website to avoid having to employ a full stack developer. While all
members will improve their knowledge around blockchain technology to provide support
services to the software developer. Unfortunately, SunBlock do not have the time to wait
until all members achieve the acquired knowledge around blockchain technology and do not
need to employ a developer as the early mover advantage will be lost.

Data Breach

Risk Level – Medium.

Impact: SunBlock will collect various information on its users including details around their
electricity usage, personal information such as name, address and credit card details. Due to
the sensitivity of this information and increased sanctions on not taking adequate measures
to prevent data breaches implemented by the GDPR this is an important risk for SunBlock to
mitigate against. The SunBlock management team will also have to take steps to identify a
data breach within 72 hours and notify the users which it effects.

Mitigation Strategy: In order to mitigate the risk of data breaches, SunBlock will back up all
company data and take additional security measures to protect all data. These additional
security measures will include crafting an encryption policy and enforcing it, perform
vulnerability assessments regularly, limit staff access to sensitive data and have top of the
range anti-virus and anti-malware software installed across the SunBlock with firewalls used
where necessary. By taking these additional security measures SunBlock will reduce its

SUNBLOCK 63
chance of being a victim of a data breach and associated financial and reputational damage.
These measures will not mean that SunBlock will never be the victim of a data breach so it is
therefore important to have a contingency plan in place to minimise damage and identify if
one occurs.

Server and Network Downtime

Risk Level – Medium.

Impact: As the SunBlock system is founded upon real time peer to peer solar energy trading
any server downtime would cause major issues and would not allow trades to go through
which could leave some users without electricity and other users unable to monetise their
excess electricity. Server downtime could erode users trust in the SunBlock platform.
Network downtime would also stop devices being able to communicate with each other
through the internet and would result in a loss of the ability to trade.

Mitigation Strategy: To prevent server downtime SunBlock will take a number of steps
which include utilising cloud managed services where possible, use a windows server
scheme which will allow the server to self-clean and run an isolated process web tier. These
steps will go a long way to preventing server downtime but SunBlock will also back up all
data collected on its users to minimise the damage if server downtime does occur. Network
downtime is difficult to overcome as it will be dependent on external providers but
SunBlock will investigate the most reliable provider and explain the consequences of
network downtime to prevent this issue.

Financial Risks

Profitability

Risk Level – Medium.

Impact: SunBlock will expect to fail to be profitable in the first 12 months as the platform
will not launch until 2020. This is not unusual for a start-up to fail to make a profit initially
but every effort must be made to make SunBlock a profitable company as soon as possible.
By onboarding 8 communities in year 2 SunBlock will return a healthy profit and this
number of communities is very achievable.

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Mitigation Strategy: SunBlock will look to attract 18 large communities by 2021, this will be
achieved by investing heavily in marketing and sales along with creating partnerships with
renewable energy and smart grid associations such as Aran islands renewable energy Ltd
and Tallaght smart grid project. SunBlock will also continue to invest in R&D to ensure that
we deliver the best version of SunBlock with the most up to date technology.

Funding issues

Risk Level – Medium.

Impact: If SunBlock’s management team cannot secure adequate funding the company will
struggle to get off the ground, this will greatly affect the company’s success and ability to be
profitable.

Mitigation Strategy: To minimise this risk the SunBlock management team will do a lot of
research into potential funding opportunities and apply for as much funding as possible.
Grants from Enterprise Ireland and the SEAI will be applied for.

Company Specific Risks

Volatility of Cryptocurrencies

Risk Level – Medium.

Impact: Due to the lack of regulation, the fact cryptocurrencies have no defined intrinsic
value and a lack of institutional capital cryptocurrency prices are currently extremely
volatile. This affects SunBlock as SunBlock token the ERC20 token used on the SunBlock
platform to facilitate trading will be affected by this volatility in price.

Mitigation Strategy: To mitigate this risk SunBlock will allow users to convert their SunBlock
tokens to fiat currency within the SunBlock website and app. This will be achieved by
partnering up with an exchange such as Krakken. In partnership with the exchange SunBlock
will also allow users to set conditions for stop orders. What this means is that if the
SunBlock token drops below a predefined price then the exchange will automatically sell it
on behalf of the user meaning that potential losses are minimised.

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Grid Infrastructure

Risk Level – Medium.

Impact: f the grid has not advanced enough to allow the SunBlock platform to run by 2020
the SunBlock will have to push back its launch until such a time that the grid infrastructure
has advanced. This will have serious issues for expenses incurred by SunBlock and also for
the communities who are planning to use the SunBlock platform from 2020.

Mitigation Strategy: In order to mitigate this risk SunBlock needs to have a clear plan and
strategy in place for the grid infrastructure not being ready by 2020. This may involve
communicating with the communities which are recruited for 2020 that there is a slight
possibility that it may be 2021 before SunBlock can launch. SunBlock should also look to
keep a small amount of funding kept aside so the company could still operate should this
occur.

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 SUNBLOCK
Part 2 – Technology Plan

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Technology Plan Overview
A technology plan has been complied to outline the technological requirements for
SunBlock. Firstly, SunBlocks website is discussed which can be found here:
http://www.sunblock-energy.eu/. Both the front end and back end are examined along with
the registration and sign-in function. Secondly, the SunBlock trading mechanism is examined
which outlines the two technologies that will be used to implement such a system.

Website
SunBlock’s website development began with a bootstrap template and editing the existing
HTML, CSS and JavaScript code in the template and also adding any new code where
necessary. We choose this method of developing the website for a number of reasons. We
felt it was advantageous over hard-coding the website from scratch as beginning with a
template would allow us to create a more professional, sleekly designed website. This
theory was backed up when speaking to Conor Whyte a full stack developer at Amazon who
previously founded a web design business called 3bit designs. Conor advised us that the
editing of and adding to the code of a bootstrap template is now best practice in web
design. A web content management system would also have delivered this outcome but
would not be as flexible as a hardcoded website or have the ability to interact with a back
end. The website is hosted using a combination of Amazon web services S3 cloud storage
service and route 53 cloud domain name system. This method was chosen due to its simple
nature and level of security.

Design Process
The SunBlock website design process was lengthy and thorough as the importance of having
a professional website with good user experience was recognised early on. Good user
experience is good for business, companies which invest money and resources in user
experience attain a lower cost of customer acquisition, support cost and increased customer
retention and a larger market share (Kucheriavy, 2015). The first impression that a website
gives to a user is a vital moment in obtaining their interest. Within a tiny amount of time
being on a website people form a first impression of the site which will be a critical factor in

SUNBLOCK 68
whether they stay and engage with the website or leave and continue to surf other sites
(Tuch et al, 2012).

The aim of the design process was to create a website which makes an excellent first
impression to potential customers through an exceptionally designed website with great
user experience. The primary goal of the SunBlock website is to attract potential users to
join the platform, therefore the website has to attract the potential customers attention,
effectively and simply explain how the platform works and also outline the steps needed to
sign up. Along with this, existing users need to be able to access their personal and
community accounts and have all desired information available. All of this needed to be
delivered in an organised, structured and well-designed manner. In order to carry this out a
site map, wireframes for each page and a mood board was designed prior to creating the
pages.

Site Map

A hierarchal Structure was chosen for the SunBlock website as the various tabs available to
the user will provide them with all the necessary information and options they will need
when interacting with the site while also providing clear distinction between sections. This
structure keeps the website simple and easy to use and navigate for the user.

Wireframes

Wireframe layouts of all pages were created prior to development. This was to ensure that
the design of each page was well thought out and to guide the development. Wireframes

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are an important part of the design process as they allow for feedback on the page design
and structure before the page is fully developed. They also help separate the
functionality/layout and creative/branding aspects of the website (Haas, 2016). This allows
for a design process which focuses on both of these elements equally and at different stages
in the process.

Homepage Wireframe

‘About Us’ Wireframe

Mood Board

A mood board was created to decide upon a number of important design elements for the
website. These include the font used, type of images used, colour palette and also the icons
used. Ultimately the mood board helps define the branding and personality of a website. A

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Sans-Serif font was chosen as this type of font helps websites look modern and
contemporary while it also easily visible for the visually impaired as it stands out better and
is more readable from a distance. This font can be seen in the navigation bar at the top off
the mood board. The two pictures chosen to represent the two types of images which are
used within the SunBlock website; 1- images focusing on renewable energy and 2- images
depicting smart energy /city’s/community’s. Bright images which are inviting are also
preferred. Indigo was chosen as the primary colour in the colour palette for the SunBlock
website as it gives a sleek attractive look to the site. Finally, the icons chosen had to be
similar in nature and also convey different elements of the SunBlock platform which can be
seen In the electrical vehicle icon.

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Nielsen and Molich’s (1990) Usability Heuristics Guidelines

Be Consistent

The system should always keep users informed about what is going on, through appropriate
feedback within reasonable time (Nielsen & Molich, 1990). SunBlock’s website will achieve
this guideline by notifying the user when they are logged in along with drop down menus
appearing when the user hovers over certain options on the navigation bar.

Match Between System and the Real World

The system should speak the users' language, with words, phrases and concepts familiar to
the user, rather than system-oriented terms (Nielsen & Molich, 1990). By nature, human
beings find comfort in familiarity and this should be considered in the design of every
website. The SunBlock website incorporates as many familiar design patterns and artefacts
as possible. The navigation bar is at the top of the page with drop down menus represented
by arrows. Any clickable items are clearly represented in a button style along with many
other familiar features and phrases including ‘learn more’ and ‘download now’. The website
also speaks the users language with phrases such as ‘set up your account’.

User Control and Freedom

Users often choose system functions by mistake and will need a clearly marked "emergency
exit" to leave the unwanted state without having to go through an extended dialogue.
Support undo and redo (Nielsen & Molich, 1990). SunBlock will allow for undo and redo
functions in many areas of the website including when users are making changes to their
account settings, particularly defining circumstances for P2P trading.

Consistency and Standards

Users should not have to wonder whether different words, situations, or actions mean the
same thing (Nielsen & Molich, 1990). SunBlock achieves this by following platform
conventions including having the SunBlock name on the top left of the navigation bar and
the login and join now options on the right of the navigation bar and having contact details
listed in the footer. By abiding by these consistency and standards the SunBlock website is
easy for users to navigate.

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Error Prevention

Even better than good error messages is a careful design which prevents a problem from
occurring in the first place. Either eliminate error-prone conditions or check for them and
present users with a confirmation option before they commit to the action (Nielsen &
Molich, 1990). SunBlock tested for error prone conditions in the design of the website, one
issue which had to be addressed was that on the register and login pages when an invalid
email was entered a user could still attempt to register or login. In order to combat this the
website was altered to not allow a user to login or register when an invalid email address
was entered.

Recognition Rather than Recall

Minimize the user's memory load by making objects, actions, and options visible. The user
should not have to remember information from one part of the dialogue to another.
(Nielsen & Molich, 1990) Through the use of cookies, the SunBlock website will remember
certain information about users such as login details, details filled out on the contact us
form and credit card and cryptocurrency wallet details. This will allow these areas to
automatically populate when the user returns to the site. This will be an optional feature
which users can opt out of.

Flexibility and Efficiency of Use

Accelerators — unseen by the novice user — may often speed up the interaction for the
expert user such that the system can cater to both inexperienced and experienced users.
Allow users to tailor frequent actions (Nielsen & Molich, 1990). The SunBlock website is
flexible and easy to use and there is not much need for accelerators. As mentioned in the
previous guideline accelerators such as auto fill of forms and credit card details will be used
on the site.

Aesthetic and Minimalist Design

Dialogues should not contain information which is irrelevant or rarely needed. Every extra
unit of information in a dialogue competes with the relevant units of information and
diminishes their relative visibility (Nielsen & Molich, 1990). SunBlock’s website was designed
with a clutter free mindset and that ensuring that every text, image and icon used was
necessary and added to the overall experience of the website.

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Help Users Recognize, Diagnose and Recover from Errors

Error messages should be expressed in plain language (no codes), precisely indicate the
problem, and constructively suggest a solution (Nielsen & Molich, 1990). This was taken into
account when designing all error messages on the website to ensure that users have all the
necessary information available when confronted with an error message.

Help and Documentation

Even though it is better if the system can be used without documentation, it may be
necessary to provide help and documentation (Nielsen & Molich, 1990). A help and FAQ
section will be available on the website to provide adequate documentation to users.

Interacting with the SunBlock Website

The best way to show the functionality of the finished SunBlock website is to explain two
possible customer journeys on the site. One journey will be a potential new user who
wishes to register their interest in the platform. While the second journey will be an existing
customer who wants to check their personal and community accounts and add credit to
their account.

Journey 1 – New User

Step 1: The potential new user arrives on the SunBlock homepage looking to find out more
about the platform.

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Step 2: The new user wants to find out more about SunBlock so proceeds to the about us
page. Here they are told about the platform having multiple applications.

Step 3: Inquisitive about the multiple applications the new user proceeds to the applications
page to find out more.

Step 4: While navigating to the applications page the new user noticed a comparison page.
This page convinces the new user that they want to join the SunBlock platform.

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Step 5: The user navigates to the get started page as they want to get set up on the
SunBlock platform. The 4 main steps to get set up are shown here.

Step 6: Underneath the 4 main steps the new user clicks join now and is brought to the
contact us page where they fill out a form to register their interest.

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Step 7: After getting in contact with a SunBlock representative and receiving their
community ID the user proceeds to the register section of the SunBlock website. The user
fills in all the relevant details in the register form and clicks create account.

Step 8: The user then receives and email with a code to verify their email address. The user
must input this code in order to verify their email address and activate their account.

SUNBLOCK 77
Step 9: Once verification is
successful the user is redirected to the
SunBlock login page where they can login
with their email and password.

Step 5: Once the user has signed in they are brought to their personal account overview
page and also have access to billing and community overview pages.

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Journey 2 – Existing User

Step 1: The existing user arrives at the SunBlock homepage.

Step 2: The user clicks on sign in and proceeds to login to their account.

SUNBLOCK 79
Step 3: The user then checks the data on their personal account overview page.

Step 4: The user then proceeds to the billing page to add funds to their account to pay their
bill and also purchase some SunBlock Tokens (SNB) to use for P2P trades. This purchase can
be carried out directly on the SunBlock website in partnership with BitStamp exchange.

SUNBLOCK 80
Step 5: Lastly, before logging off the user wants to check if there is much trading going on
within her community. She proceeds to the community overview page and checks the
community ledger.

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Registration & Sign In Functionality

User Management & Amazon Web Services (AWS)

SunBlock is a web based application and also very community focused. It is important to
SunBlock that users be able to access their own accounts and also be able to access their
community page that contained elements such as their community ledger. Amazon Cognito
is a service operated by AWS that provides storage, authentication, authorization and user
management for web and mobile apps (AWS, 2018). AWS came highly recommended by
Conor Whyte who is a Full Stack Developer with Amazon. We conducted an interview with
Conor as part of our primary research and he explained to us that using a service such as
AWS presented greater benefits than trying to impractically design and build the
architecture from scratch. Some of the benefits of utilising Amazon Cognito compared to
deploying our own design are reduced costs, scalable cloud storage and high-level security.

Registration & Sign In Process

Registration and signing in are two processes that are key to the success of SunBlock. These
processes need to be designed with usability in mind in order to ensure that the user
doesn’t become frustrated or leave during the process. This is especially the case with
registration and we wanted to ensure that appropriate security measures were put in place
in order to protect the users but we also wanted to make the process as painless as possible
for the user. The registration form can be easily accessed by the user on the tab across the
top of the website. At this point a user has contacted SunBlock directly and is now ready to
set up their account. The following steps will be taken:

1. Fill out credentials into the Registration Form.

2. Verify email address by entering 6 digit code.

3. User will be redirecting to Login page where they can enter their details and be brought

to their User Page.

When a user in signing in they will be only be asked for their email address and password
and when a user is registering the details they will be asked for upon registering are:

• First & Last Name

• Community ID

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• Email Address
• Password

The Community ID will be allocated to a community once they have voiced their intention to
create a SunBlock community. It will be a distinguishing credential for communities from
one another and will be required upon registering. It will assist with connecting the user
with their community account page on the SunBlock platform.

Database Storage & User Pools

SunBlock’s user details will be stored in a secure AWS cloud. We have created a User Pool
which is a user directory that will store SunBlock’s users’ profile attributes (AWS, 2018).
Creating a user pool provides SunBlock with Sign Up and Sign In functionality. Two separate
JavaScript files are used in order to complete the process of creating a functional Sign Up
and Sign In. One file is used to configure the website bucket where the website is hosted to
the user pool. This is necessary as they must be able to communicate in order to function.

The second JavaScript file handles the registration, authentication and authorization events
and any problems that arise during that process.

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The combination of these two files with the static web pages that were produced in the
website design process provided the functionality of the Sign Up and Sign In process
necessary for the SunBlock platform at present. In terms of cost Amazon Cognito is based
on monthly active users (MAU). The free tier for use is 50,000 MAU’s and this does not
expire. Once MAU’s rise above this figure or additional certain AWS features are used in
conjunction with Amazon Cognito then the price will rise.

Security

Security was a key factor in our decision to use Amazon Cognito to build the functionality for
the website. Security for users is more important today more than ever as breaches in the
past have impacted on consumer trust and it is extremely important from a legal
perspective with GDPR and this is discussed further under the Legal Section. AWS offered a
secure cloud storage for client information that would have been extremely costly for
SunBlock to try and provide on its own otherwise. An aspect of security we felt was
important to introduce was the need to introduce a password policy in terms of attributes
needed for a password to be deemed adequate. For a password to be deemed acceptable it
must contain one uppercase, one lowercase, one symbol and must be 8 characters.

Verification Step

Once new users have entered their details into the registration form they will then be asked
to verify their email address is valid. This step will be completed by a means of an email
being sent to the user with a 6-digit code that they then need to enter onto the form on
screen. This is an important step in the registration process for a number of reasons. It is
important that SunBlock confirm that the email address listed belongs to the user that
wants our services. The main reason email addresses need to be validated is to ensure that
if any personal information needs to be sent out to the customer from SunBlock that it is
received by the correct person and doesn’t end up in another person’s inbox. Another
reason is if SunBlock didn’t validate and then proceeded to engage in email marketing with
an email address that belonged to another person it would reflect poorly on the company’s
professionalism.

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SunBlock Trading Mechanism
Through a combination of both smart meters and blockchain technology, SunBlock will
facilitate P2P energy trading.

Smart Meters
When compared to a regular energy meter, a smart meter is an advanced energy meter that
records the energy consumption of the consumer while providing additional information to
the utility provider (See Figure 4). A typical smart meter system includes a smart meter
device, control devices and communication infrastructure. Smart meters can record real-
time energy consumption information such as “the values of voltage, phase angle and the
frequency” (Deperu, Wang and Devabhaktuni, 2011) and further diagnostic information
“about the distribution grid [and] home appliances. It then communicates such data to the
utility provider and, if the consumer desires other smart meters in the community. This data
is a combination of parameters such as a unique meter identifier and a timestamp of the
data (Deperu, Wang and Devabhaktuni, 2011). Some smart meter systems even allow the
consumer to monitor and control all of the home appliances and devices with regard to
energy consumption (Deperu, Wang and Devabhaktuni, 2011). Furthermore, the consumer
or smart meter provider may program the smart meter so that the only power the
consumer is charged for is that which comes from the utility grid and not from distributed
generation sources or storage devices owned by the consumer (Deperu, Wang and
Devabhaktuni, 2011).

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 Figure 5 - A conventional energy meter compared to a
smart meter (Deperu, Wang and Devabhaktuni, 2011).

Smart meters now play an important role in modern energy markets by creating efficiency.
This is done by firstly conveying information on real-time prices and load to consumers,
“allowing them to respond by increasing or decreasing demand” (Pepermans, 2014) and
secondly, monitoring the performance and energy usage characteristics of the load of the
grid (Deperu, Wang and Devabhaktuni, 2011). In the years to come, the uptake in the smart
meters is expected to rise due to energy markets aiming to provide their consumers with
highly “reliable, flexible, readily accessible and cost-effective energy services” (Deperu,
Wang and Devabhaktuni, 2011). However, despite their ability to facilitate this
improvement in energy services, smart meters do have their issues.

An enormous amount of data which is sensitive and confidential is generated as a result of

utilising smart meters. While the “collection and transmission of energy consumption data is
a continuous process that is done automatically” (Deperu, Wang and Devabhaktuni, 2011),
it is a tedious and expense job. Furthermore, it is essential that this sensitive data
represents the complete information regarding the consumers energy consumption and the
“status of the grids without any potential manipulations or miscalculations” (Deperu, Wang
and Devabhaktuni, 2011). Thus, the security of this data is paramount. However, smart
meters are prone to privacy and security issues as the data and signals are being
transmitted

In addition to the security and privacy issues, a huge amount of data is generated and
transferred from the operation of smart metes as the data is communicated between the
utility provider, smart meter and home appliances. The management, maintenance and
storage of such data is again, expensive and tedious (Deperu, Wang and Devabhaktuni,
2011). Significant attention is paid to the communication network and the design of the
communication devices in particular given that a number of security issues may arise here
such as weak authentication, error handling, weak protocols and improper session

SUNBLOCK 86
management (Deperu, Wang and Devabhaktuni, 2011). Furthermore, there may be
limitations with the consumers network coverage leading to data capacity issues.

Blockchain

How Blockchain Works

As mentioned in the introduction, blockchain based systems are a combination of a

distributed ledger of all transactions which have been executed, a decentralized consensus
mechanism, and cryptographic security measures (Mengalkamp et al., 2018). A blockchain is
consists of data sets which are composed of a chain of data packages (blocks) where a block
comprises of multiple transactions (Nofer et al., 2017). Such transactions, which are held in
the body of the block, refer to the movement of tokens that typically represent some
monetary value or the transfer of data. As each additional block is added to the blockchain
(each block is numbered and added in numerical order), it is extended and thus represents a
ledger containing the transaction history (Nofer et al., 2017). Once a block is validated by
the network using cryptographic means, it is added to the blockchain and cannot be edited
or moved.

In addition to these transactions, “each block contains a timestamp, the hash value of the
previous block (“parent”), and a nonce, which is a random number for verifying the hash”
(Nofer et al., 2017). This concept ensures the integrity of the entire blockchain. Hash values,
which are held in the header of the block, are unique. Hence, fraud can effectively be
prevented “since changes of a block in the chain would immediately change the respective
hash value” (Nofer et al., 2017).

Furthermore, new transactions are not automatically added to the ledger. Instead,
transactions are stored in a block for a certain time before being transferred to the ledger.
This is due to the consensus mechanism which according to Swanson (2015) “is the process
in which a majority (or in some cases all) of network validators come to agreement on the
state of a ledger”. If the majority of the nodes in a network agree by a consensus
mechanism on both the validity of transactions in a block and on the validity of the block
itself, the block can be added to the chain (Nofer et al., 2017). There are a number of widely
used consensus mechanisms with two of the most popular being:

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Proof of Work (PoW)

PoW is the consensus mechanism used in the Bitcoin network. The PoW algorithm works by
having all nodes solve a cryptographic puzzle. This puzzle is solved by miners and the first
one to discover the solution earns a reward. The node which successfully mined the new
block then transmits the block to all other nodes in the systems and the rest verify its
validity. However, this mechanism requires a huge amount of computational power and can
lead to mining pools, creating a more centralised blockchain.

Proof of Stake (PoS)

The PoS validation method uses an election process in which one node is randomly chosen
to validate the next block. PoS does not have miners but rather validators and mining is
referred to as minting or forging. The choice of validator is not completely random. Instead,
to become a validator, the node has to deposit an amount of coins into the network which is
called the ‘stake’. The size of this stake determines the chances of the validator to be
chosen to forge the next block. The greater the stake deposited, the greater the chance of
being chosen. This mechanism requires less computational power than PoW.

Why Blockchain Suits our Application

Blockchain technology offers a number of benefits which SunBlock will incur. These include:

Enhanced Security

As a decentralised and transparent technology, blockchain can resolve the security issues
that currently exist within today’s smart meters. As mentioned, sharing data through smart
meters has raised privacy issues with owners. However, blockchain can offer accurate data
to the utility provider without referencing the meter of the specific user (Boersma, 2018).
Furthermore, by using their private key combined with the cryptographic security
blockchain provides, users can prove that their data is accurate and untampered with
(Boersma, 2018).

Efficient Sharing of Data

Transaction information will be available to all of the interested parties immediately once
the transaction has been completed. This is due to the fact that when a transaction takes
place, it will be broadcast to all of the nodes on the network with each collecting the

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transaction into a block (Nakamoto, 2008). This efficient sharing of data combined with the
shared reading of the ledger also results in the benefit of transparency.

System Availability

With a centralised database, there is no way of accessing the information if it fails unless
there a stored up-to-date backup available. This concern is quashed with blockchain given
that blockchain databased store a copy of the database on each node.

System Architecture

The system will be developed on Ethereum, an open-source public blockchain. Ethereum

tokens can be traded on cryptocurrency exchanges. Ethereum uses open source code which
allows users to write smart contracts “where they can create their own arbitrary rules for
ownership, transaction formats and state transition functions” (GitHub, 2018). Smart
contracts also facilitate the transactions of tokens, record the balance of tokens in an
account (William, 2018) and can be used to implement the market mechanism
(Mengelkamp et al., 2018). These smart contracts are coded using Solidity. Numerous
applications have been developed on the Ethereum blockchain. Furthermore, Ethereum
currently uses a PoW system to verify transactions. However, it is moving to a PoS system.
This is not an issue for SunBlock. By the time our application is deployed on the Ethereum
blockchain, Ethereum will have rolled out the PoS consensus mechanism.

Ethereum applications can run on either the public or private network. SunBlock will be
deployed on a private network. This is due to a number of reasons:

Readiness

With regard to combining smart meters with blockchain technology, a public blockchain is
not ready for large-scale deployment because it is time-consuming and energy intensive.
With a private blockchain, there are ready to be deployed in smart meters while also
allowing for scalability and privacy (Dena, 2017).

Data Protection

Protecting the personal data gathered from smart meters is a priority. In the past, shared
databases and centralised ones too have been displayed an inability to prevent malicious
activity. For example, “when one of the participating entities is hacked, and that entity

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writes ‘corrupted’ data into the shared database, thus making it invalid for everyone
involved” (Thompson, 2016). A private blockchain solves this issue by using cryptography.

Speed

Information can be stored on a private blockchain with very little delay due the efficient
sharing of data (Finestone, 2017).

Permissions

By using a private blockchain, the community controls who joins the network and who
doesn’t. Furthermore, the community can restrict read permissions in order to protect
personal data and restrict market access (Mengelkamp et al., 2018).

With regard to how the trade will be executed, smart contracts will be deployed for each
consumer and prosumer in the community that will contain the conditions under which a
trade should be executed. Also, each individual will also have an assigned Ethereum wallet
address. These addresses will be stores in an array in the smart contract. A potential issue
that we may encounter is how exactly does the smart contract know which address to send
the SunBlock token to in exchange for energy. A potential work around is to match the
wallet address with the corresponding smart meter ID. Thus, as the smart meter
communicates with the blockchain, the smart contract will be able to identify the smart
meter ID demanding/selling energy.

Furthermore, some of the conditions that will be included in the smart contract include:

- if the storage unit reaches capacity, offload the excess energy and .

- If the user does not have a storage device, offload the excess energy.

- Trade if the users buy limit is met.

- If the user is storing energy and the sell limit is met, trade this energy. If not, do not trade
and continue to store the energy.

More conditions will be added as we communicate with each community.

Payment Mechanism

A token will be used to make payments and complete trades which can then be exchanged
for euro or dollar on a cryptocurrency exchange. SNB will be issued using the ERC 20

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standard. “ERC-20 is the universal language that all tokens on the Ethereum network use”
(William, 2018). It allows one token to be traded with another and the smart contracts we
deploy will be able to facilitate the exchange of SunBlock Tokens between community
members.

To issue an ERC 20 token ,the smart contracts SunBlock deploy must meet six mandatory
rules. According to William (2018), these are:

1. totalSupply: This will define the total number of SNB in circulation.

2. balanceOf: This function returns the balance of tokens a user has in their account.
3. transfer: This allows for a certain number of tokens to be transferred from the total
supply to a user’s account.
4. transferFrom: This allows for a user to transfer tokens to another user.
5. approve: This validates a transaction against the total supply of tokens
6. allowance: This checks the users account to ensure that there is enough tokens in the
account to complete the transaction. If there is insufficient tokens, the transaction is
cancelled.

Market Mechanism

SunBlock will use a closed double action market for price determination of the energy being
traded. Double actions are mechanisms that involve both a buyer and seller, or in this case a
prosumer and consumer, in which both simultaneously participate in the bidding process
(Faqiry and Sas, 2016). There are discrete market closing times which will result in a single
trading price for each period. The prosumer and consumer can select a price limit for buying
and selling electricity before each trading period. If the limit is not met, it will not be filled.
With regard to priority, orders that are received first will be filled first. “The lowest bid price
that can still be served given the aggregate supply determines the market clearing price”
(Mengelkamp et al., 2018).

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Appendix
Appendix 1: SunBlock Potential Versions
Since the Inception of SunBlock there has many different versions of the service which we
have considered. In this section we will outline the three main versions which we
investigated including advantages, disadvantages and challenges associated with each
version. The primary research conducted was a major influence in identifying these key
factors and thus will be discussed where appropriate.

SunBlock V1- P2P energy trading using the main grid

This version was centred around providing a service which facilitates P2P solar energy
trading within communities using blockchain technology. Individual houses can trade
between one another using the SunBlock tokens which can bought on the SunBlock website
or app in partnership with an exchange. During our meeting with Subhasis Thakur and John
Breslin from Enerport they told us that this model would be extremely difficult to
implement at present without providing new infrastructure to replace the existing grid. The
reason being that the grid infrastructure in Ireland is not currently at a level to facilitate this
P2P trading. John and Subhasis estimated that at the earliest the grid will be ready for this in
2020. One other issue mentioned was that SunBlock may struggle to get permission to use
the electricity grid from EirGrid.

A work around here would be to have a battery farm according to Peter Deeney who is a
post-doctoral researcher in carbon trading and oil and EU emissions futures markets. This
farm could provide balancing services if large enough and hence, it is plausible to say that
we could potentially be allowed to connect to the main grid. With this battery farm in place,
we would be providing 'storage as a service' as well. However, while using the main grid in
this scenario we could operate a virtual peer to peer service but the expense of associated
with a battery farm and the current state of the electricity grid in Ireland led us to further
define the SunBlock business model.

Revenue Model of V1: A subscription fee charged to be part of the platform, renting
storage in battery farm through SaaS model and the revenue generated by providing
balancing service to the grid.

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Advantages of V1

• In this version no, new grid-like infrastructure is needed to facilitate SunBlock.

• By having a battery farm this opens up an additional form of revenue by providing
balancing services to the main grid.

Disadvantages and Challenges of V1:

• The use of a battery farm only allows for virtual P2P solar energy trading.
• The cost of setting up a battery farm could make the project unfeasible.

SunBlock V2 – P2P solar energy trading facilitated by new infrastructure

Due to the problems with version one, the second version involved providing infrastructural
services to facilitate the P2P solar energy trading via the blockchain. This would involve
community circuits, battery’s and smart meters. This version would open up a different sort
of target market which would focus on communities on islands, new housing developments,
housing estates, business parks with a view to expanding to developing countries (where
there is no infrastructure in place) to generate renewable energy and go off-grid. This way,
we remove the obstacle of connecting to the main grid. One issue raised when considering
this model was the perceived dangers by consumers who are currently on grid, of going
totally off grid. For example, what if a community does not produce enough solar energy to
sustain itself. Peter Deeney assured that it would be relatively simple to connect back to the
main grid when these communities do not generate enough renewable energy and this
could even be done automatically. Trading could still occur in this scenario through the
combination of smart meters and blockchain. The issues with this version are cantered
around the new infrastructure – this infrastructure (community circuits) will be unnecessary
by the time the main grid advances to allow P2P trading, but overall the main issue with this
version is the cost of setting up such a service. SunBlock would not be able to generate
enough funding and could not justify the cost of what is a short-term solution. Below is cost
analysis which shows the costs involved in setting 8 communities up on the platform which
is planned in year 2. We can see a comparison between the off grid and on grid approach.

Year 2 – With 1 Community 8 Communities

Infrastructure

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 Community Circuits €60,000.00 €480,000.00

Circuit Installation Costs €20,000.00 €160,000.00

Batteries €30,000.00 €240,000.00

Smart Meters €7,500.00 €60,000.00

Total Costs €117,500.00 €940,000.00

Year 2 – Without 1 Community 8 Communities

Infrastructure

Batteries €30,000.00 €240,000.00

Smart Meters €7,500.00 €60,000.00

Total Cost €37,500.00 €300,000.00

Revenue Model of V2: Subscription fee to be part of the platform, SaaS model or selling
batteries along with taking a percentage of each microtransaction.
Advantages of V2

• This version facilitates the true blockchain based P2P solar energy trading model on
which SunBlock was founded upon.
There is an opportunity here for communities to become self-sufficient using only
renewable forms of energy and operate in a decentralised manner.
• The Storage as a Service model could still operate here with the communities renting
storage in localised battery hubs within their communities.
• By providing infrastructural services which allow communities to go off grid this version
of SunBlock opens up developing countries as a target market.

Disadvantages and Challenges of V2

• Installing the infrastructure will have a few challenges and these include the cost, the
willingness of communities to install the infrastructure and the trust in the
infrastructure.
• Focusing on just P2P solar energy trading and storage may be a narrow product offering
and the consumer could expect more, especially when needing to install new

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 infrastructure.

SunBlock V3- On grid P2P solar energy trading and smart demand and supply
management

Due to the costs associated with the off-grid approach outlined above SunBlock’s final
version was decided to be on grid. To facilitate this SunBlock will spend 2019 developing the
technology necessary to launch the platform while our marketing and sales team will work
on onboarding communities for the start of 2020. Based on meetings with John and
Subhasis from EnerPort and Peter Deeney along with the secondary research conducted we
are making an educated assumption the grid will be ready for SunBlock in 2020.

The first two versions of SunBlock only provided P2P solar energy trading and we felt it was
important to add more value to SunBlock. John and Subhasis from EnerPort and Peter
Deeney recommended supplying some form some form of smart demand and supply
management aspect to the service. In our competitor analysis we also identified
PowerLedger in providing these services along with the P2P trading and Grid+ are supplying
similar services for consumer utilising the main grid without P2P trading. The smart demand
and supply aspect will look into ensuring the consumers effectively manage their renewable
energy. This will be carried out through the use of blockchain, along with a smart meter
which will help micromanage energy use for individuals. Any surplus energy could then be
sold at peak times, stored in batteries or used for charging electric cars or heating water. A
full list of the smart demand and supply management services offered by SunBlock is
outlined in the applications section of this report. Trading in this version will still take place
using the SunBlock tokens.

In this version users will first be able to trade within their own communities or micro-grids
but as grid technology advances SunBlock will look to allow trading between different
communities and micro grids.

Revenue Model of V3: Subscription fee to be part of the platform, battery’s and smart
meters will be supplied as part of the subscription. A subscription fee of €800 will be
charged to prosumers and €400 to consumers as prosumers also have the opportunity to

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generate revenue through trading. This fee is less than the €1200 which is spent a year on
average by households in Ireland.

Advantages of V3

• This version avoids the cost of providing and installing community circuits.
• Allows for P2P solar trading as SunBlock first envisioned it – on grid.
• By providing smart demand and supply management services SunBlock offers more
value to the consumer.
• In the future trading between microgrids can take place.

Disadvantages and Challenges of V3

• Implementing the smart demand and supply management services will require
additional technology to develop these applications.
• SunBlock must hold of launching until 2020.
Developing countries are no longer considered a primary market for this version.

By outlining each version of SunBlock, the advantages, disadvantages and challenges

associated with each version it makes it clear both the benefit of the primary and secondary
research conducted along with outlining the value that SunBlock has a service.

Appendix 2: SunBlocks Potential Applications

SunBlock is a service which is going to manage energy generation, storage and consumption
for small communities and individuals. The service will be primarily focused on electricity
generation from solar (with a view to looking at wind later down the line). The electricity
produced will be stored in three different methods – in home batteries, electrical vehicles
and ‘battery farms’ which will act as a form of offsite electricity storage for SunBlocks
clients. Essentially SunBlock is looking to micro-manage these areas using blockchain
technology. SunBlock will charge a subscription fee for micro-managing these different
aspects but there will also be an opportunity for those who wish to sell their excess solar
energy to make additional revenue by selling this excess electricity either directly to their
neighbours from their electricity storage. Below we have outlined some applications which
will be included in the service.

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P2P Trading

This application will allow individuals to trade solar electricity with one another and receive
payment in real time. There are many benefits associated with this P2P system including;
improving access to clean energy sources, trade with your neighbours to improve
distribution and usage of electricity, receive more money for excess power when compared
with letting the excess electricity run back into the grid. While blockchain technology allows
for increased transparency on all trades along with low settlement costs. This application
can result in reduced electricity costs and improved returns.

P2P energy trading will allow consumers to purchase energy from specific sources which
was not previously possible. What this means is that consumers can chose to buy solar
energy or energy produced by their neighbour. A move towards a P2P energy trading
system is also likely to incentivise individuals to install solar panels (Reed, 2018). There are
many companies working towards P2P energy trading at present but very few are currently
operational. Within Ireland EnerPort which is a project launched in Cork this year which are
looking at allowing Irish consumers to gift or sell their solar power to neighbours are leading
the way (IERC, 2018). While in the UK Verv who are an energy monitoring and AI company,
are currently launching the UK’s first peer-to-peer energy trading platform/community in
Hackney, East London (Energy Storage News, 2018). One company who are currently
successfully operating a blockchain based P2P energy trading system are SunContract who’s
platform is operational in Slovenia and they claim electricity cost reductions of 40% are
being witnessed as a result of the platform (SunContract, 2018). For a more in-depth list of
competitors please see the competitors section of this report.

Smart Demand and Supply Management

This application will look to benefit to all clients on the SunBlock platform. Electricity cannot
be easily or cheaply stored so therefore it is important that sufficient electricity generation
is always available to meet demand (Origin Energy, 2015). SunBlock will use blockchain
technology coupled up with storage devices and smart meters to balance supply and
demand using smart contracts. The smart contracts will be built on the Ethereum blockchain
and will be based on a list of predefined rules which are designed to ensure that all energy

SUNBLOCK 97
and storage flows are controlled automatically which will balance supply and demand (PWC,
2018).

On the SunBlock platform blockchain technology will be used here to directly control
network flows and storage facilities. When more energy is generated than needed by one of
SunBlocks client’s smart contracts will be used to ensure that this excess energy is delivered
into storage automatically or traded on the P2P trading platform. If the energy is held in
storage then it will be deployed when energy output is low. This will facilitate grid
management at a granular scale.

Shared Ownership Application

This application will allow for shared ownership of renewable energy assets. This will mean
that more than one individual can own a renewable energy source such as a solar panel and
utilise the energy it produces or stores. While also profiting from any excess energy which is
sold. This can be set up by the SunBlock users with a desired amount of energy and/or
income being distributed among individuals from a shared renewable energy asset.

Electric Vehicles

In the future it would be the goal of SunBlock to allow individuals to utilise their electric
vehicles to potentially produce another source of income relating to the production of
renewable energy. A major challenge for grid managers in relation to renewable energies
such as solar and wind is that it can be more difficult to balance the gird in terms of supply
and demand for electricity because the production of that energy can fluctuate more than
non-renewable fuels. The increased production and popularity of electric vehicles will also
put new stresses on the demand for electricity in grids. SunBlock will look to implement a
Vehicle-To-Grid (V2G) system as one of our applications that will allow individual’s parked
electric vehicles to earn them money by selling electricity back into the grid during times of
high demand. A V2G system will allow electric vehicles to absorb any extra electricity
produced by individuals and store that electricity. It could then be sold to the grid during
times of high demand in order to make profit for the individual. It is a similar concept to
stationary battery packs storing energy produced.

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This concept of a V2G system has been tested in Denmark by the Nissan Motor Company
and Enel SpA which found that individuals collected around $1,530 a year using two-way
charge points (Bloomberg, 2017). The smart management of electric vehicles can allow
individuals to benefit from the excess energy being stored in their vehicles and also help
solve the issue of balancing supply and demand for grid managers (Forbes,
2017). Blockchain technology will be used in order to manage and secure the transactions
that occur between the grid and individuals relating to their electric vehicles. It is an
appropriate technology as it records the exchange of energy, energy prices, and transaction
IDs can all be permanently stored in the database (Fleetcarma, 2018).

Appendix 3: Legal Requirements

Given that SunBlock is a new company, there are a number of legal requirements that must
be met. SunBlock must register with the Company Registration Office (CRO) which involves
a number of actions. The CRO website is an excellent resource with regard to learning how
to establish a company.

Register Business Name

Registering with the (CRO) firstly involves the registration of a business name which is
obligatory if any individual or partnership or any-body corporate carries on business under a
name other than their own true names (Company Registration Office, 2018a). Fortunately,
the name “SunBlock” is not reserved. The reservation of “SunBlock” can be completed at
https://core.cro.ie/ for a fee of €25.

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Company Registration

SunBlock will be registered as a private company limited by shares in accordance with the
Companies Act 2014 (Company Registration Office, 2018b). If SunBlock becomes wound up,
the members liability is limited to the number of unpaid shares held (Company Registration
Office, 2018b).

A number of forms must be submitted to form a company which are, according to the CRO
(2018c):

Form A1

SunBlock must outline a number of details in this form including the company name, its
registered office, details of secretary and directors and their power within the company.

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Constitution

As SunBlock will be a private company limited by shares in accordance with the Companies
Act 2014, it must have one constitution. A sample constitution can be seen below:

CONSTITUTION

OF

SunBlock

1. The name of the company is: SUNBLOCK LIMITED.

2. The company is a private company limited by shares, registered under Part 2 of

the Companies Act 2014.

3. The liability of the members is limited.

4. The share capital of the company is €50,000 divided into 50,000 shares of €1 each. /
The share capital of the company is divided into shares of €1 each.

5. Supplemental Regulations (if any).

We, the several persons whose names and addresses are subscribed, wish to be formed
into a company in pursuance of this constitution, and we agree to take the number of
shares in the capital of the company set opposite our respective names.

Name, Address and Description of Number of Shares taken by each

Subscribers Subscriber

1. Niall Yorke 1,000

Address:
Description:

2. John O’Dowd 1,000

Address:
Description:

3. Cillian Kirk 1,000

Address:
Description:

Total Shares Taken: 3,000

As appropriate:

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Signatures in writing or the above subscribers, attested by witness as provided for below;
Or authentication in the manner referred to in section 888 .
Dated the ____________ day of _____ 20__

Witness to the above Signatures:

Name:
Address:

Online Business Policies

Acquire both a Domain Name and Server Space

Amazon Route 53, which is a highly scalable and cost effective DNS web service, was used to
purchase the following domain name: http://www.sunblock-energy.eu/. Amazon web
services was also used to purchase server space. Both of these are necessary for establishing
an online presence.

EU General Data Protection Regulation (GDPR)

The GDPR, which came into force on the 25th of May 2018 (Eifrem, 2018), is the successor
the European Data Protective Directive. While organisations have been reaping the rewards
from utilising the increased amounts of data generated every day to inform decision
making, regulations and legislations surrounding the use of data have become outdated.
However, the GDPR now presents an opportunity to drive greater convergence between
cybersecurity and compliance within the European Union (EU).

Given that SunBlock will be gathering a substantial amount personal data, being compliant
with the GDPR will involve a facilitating a number of challenging actions. Firstly, as European
citizens now have the right to be forgotten, SunBlock must, as data controllers, remove the
personal data of an individual upon request “if there are no legitimate reasons to retain
such information” (Anonymous, 2016). Secondly, SunBlock must provide a means for the
individual to give clear and affirmative consent, such as ticking a box (Anonymous, 2016) if
SunBlock wish to retain his or her personal data. Thirdly, and one of the more challenging, is
that SunBlock must facilitate data portability so that European citizens can transfer data
from one service provider to another (Anonymous 2016). Finally, Sony must limit profiling
its customers in order to predict his or her behaviour (Anonymous 2016). Failure to meet

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these requirements along with the many others will result in a fine of up to 4% of annual
global turnover or €20 Million (whichever is greater).

European Communities (Electronic Communications Network and Services) (Privacy and

Electronic Communications) Regulations 2011

These regulations enforce conditions that must be met by businesses and organisations
carrying out direct marketing. SunBlock must met these when carrying out any marketing
campaigns.

Employer Compliance

Given that SunBlock will hire a number of employees, there are a number of employer
regulations that must be adhered to. These include

• National Minimum Wage Act 2000

• Employment Equality Act 1998
• Safety, Health and Welfare at Work Acts 2005
• Terms of Employment Acts 1994 - 2012
• Unfair Dismissals Act 1997 – 2007

Tax Compliance

Upon receiving a CRO number, SunBlock will complete a Form TR2. This is use to register for
corporation tax, employer PAYE, VAT and relevant contracts tax.

Appendix 4: Future Expansion

Detailed in the section below are the future expansion plans for SunBlock have been
identified as viable and promising options that will enhance and grow the SunBlock business
and brand in the future.

International Expansion

The expansion into other international markets is a key expansion tactic that SunBlock will
seek to take advantage of in the future as there is great potential to also be a first mover in
terms of peer-to-peer energy trading in those markets. This would be beneficial for
SunBlock as it would provide more opportunity to capture market share, grow the customer

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base and in turn grow the business. SunBlock recognises the benefits that come from
expanding into a new market but it is also very aware of the potential risks that come with
expansion. SunBlock will look to mitigate these risks and establish a firm foothold within its
chosen markets by taking steps such as conducting market research to understand the
market and also cultural differences and importantly establishing strategic partnerships and
alliances. Two markets that SunBlock has identified as potential expansion opportunities
are:

• Europe
• Africa (Developing countries)

Europe is an obvious expansion as it is presents a great opportunity to expand the brand

into a market that is geographically close. As stated in previous sections the EU is also an
ambitious organisation that has plans up until 2050 at this time to reduce the environmental
impact of its member states and renewable energy has a huge role to play. SunBlock has
the potential to be a first mover in terms of peer-to-peer trading in Europe as explained in
the Competitor Analysis the number of competitors are low with a competitor operating in
Slovenia. The European market presents a great opportunity to capture market share in the
renewable energy market and grow the SunBlock brand.

Africa is also another market that has great potential for SunBlock to expand into and
capture market share. Almost 600 million people on the continent on Africa don’t have
access to electricity and different regions and as can be seen from the diagram below
different regions face different problems (IRENA, 2015). Africa is however heavily reliant on
fossil fuels and biomass as sources of electricity but it is beginning to be recognised as a
great opportunity for renewable energy grids and micro grid systems. Governments are
developing funds across the continent for the purpose of installing renewable energy
solutions and infrastructure for their respective countries inhabitants. In April 2018 Allianz
became the first commercial lender committing $120 million to the Emerging Africa
Infrastructure Fund (Forbes, 2018). The South African Government also signed contracts
worth $4.7 billion with independent contractors in April 2018 (Reuters, 2018). These are
just examples of some of the investment that is being made now in renewable energy in
Africa. The SunBlock platform would be an ideal product to install in parts of Africa such as
rural locations as it could operate as a self-sustaining micro-grid. The services that SunBlock

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offers would assist with households that are producing their own solar energy become more
sustainable and also potentially offer another source of income.

Figure 6 - Africa’s Energy Landscape (International Renewable Energy Agency, 2015)

Technological Innovation

SunBlock recognises the importance of innovation and will seek to enhance the technology
that SunBlock operates and also add additional features in order to further the value of the
SunBlock platform to the customer.

Additional Renewable Energies

SunBlock will seek to develop its technology in the future to include other renewable energy
sources. In some communities it may be more appropriate and productive to install other
forms of renewable energy solutions other than solar energy and it can be expected that
these communities will want the same benefits that the SunBlock platform is able to offer
its current target audience. The inclusion of other renewable energies into the SunBlock
platform is a smart way to be a much more inclusive brand while also increasing our target
audience. The development of the technology will also improve the marketability of
SunBlock and appeal to consumers in international markets as the renewable energy
balance in those markets may favour forms of renewable energy other than solar.

A form of renewable energy that SunBlock will target as the first addition to the SunBlock
platform will be wind power. Wind power technology similar to solar energy has huge
market potential and is constantly making strides in terms of increasing capacity and

SUNBLOCK 105
improving efficiency and provides the most. According to International Renewable Energy
Agency it is more susceptible to price fluctuations in the marketplace in terms of cost
because core materials are subject to commodity prices but it is positive that between
2009-2017 prices wind turbine prices steadily decreased by 53% in the US and 41% in China
respectively (IRENA, 2017). This trend is expected to continue in the future as the
technology continues to improve. Wind power presents a great market opportunity for
SunBlock to diversify and grow in the renewable energy industry.

Appendix 5: Research Synopsis

In the latter weeks of Semester 2, the team set out to answer the following research
question:

“Is there a market for the potential commercialization of our application among households
who currently produce and/or use renewable solar energy?”

Furthermore, a number of research objectives were outlined:

• To determine if a demand exists for an implementation of a peer-to-peer trading platform

for renewable solar energy among households.

• Blockchain is a relatively new technology and as is the case with many new technologies
there is substantial hype and scepticism surrounding its actual potential and benefits. It is a
technology that many households will not have come into contact with in their everyday
lives yet. The idea of generating a token will be completely alien to many people and with
this research we need to access the likelihood that households would use a platform that
operates using this technology (Michelman, 2017).

• This research will also allow us the opportunity either justify our selection of business
model or gather meaningful data indicating why this selection will not attract consumers to
uptake the platform.

• To identify any substantial obstacles that will block SunBlock from being deployed.

Both quantitative and qualitative research methods were deployed to answer such a
question and meet such objectives. As we are gauging opinion and attitude toward an
application that would facilitate peer-to-peer renewable energy trading, an online self-
administered questionnaire was employed. The sample frame, which is a complete list of all

SUNBLOCK 106
the cases in the population from which your sample will be drawn” (Saunders, Lewis and
Thornhill 2016), were communities with an interest in renewable energy generation, energy
efficiencies, sustainable employment as well as financial and energy savings. Fortunately,
the Sustainable Energy Authority of Ireland provide public access to their sustainable energy
communities map in which one can view and filter communities across Ireland based on
their interests. Each communities has a designated email which we used to contact the
community leader and distribute our online questionnaire.

A number of communities were happy to be of the research. Although we cannot conclude

that the results are representative of the sample as we would have had to gather 1314
responses, we can conclude that 1): there is an appetite to trade excess renewable energy,
2): a significant proportion are not aware of blockchain and 3): the main drivers to produce
renewable energy are to reduce one’s carbon footprint and save money. Thus, these factors
must be leveraged in any SunBlock promotional campaigns.

Following on from the questionnaire, a number of interviews were held with researchers,
industry experts and individuals who lived in sustainable communities. Outlined below is an
overview of each interview and the key takeaway(s).

Interview 1 – John Breslin and Subhasis Thakur

On the 2nd of July, the team visited John and Subhasis in the Insight Centre, Galway. Both
John and Subhasis are researchers who recently published an article titled ‘Peer to Peer
Energy Trade Among Microgrids Using Blockchain Based Distributed Coalition Formation
Method’. Thus, it was in the best interest of the team to organise a meeting with John and
Subhasis.

The team set a number of questions to ask John and Subhasis such as ‘If we use a battery
farms does that take away from p2p?’ and ‘would a service such as SunBlock add any value
to the grid?’. We also wanted to understand the complexity of trading between microgrids
and if it would be possible for SunBlock to connect to the main grid. While we learned that
P2P energy trading is most definitely feasible between households within a single microgrid,
trading between multiple microgrids is not. However, John and Subhasis estimated that the
grid will be ready for P2P energy trading in 2020.

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Furthermore, John recommended to focus primarily on the consumer benefits rather than
the benefits the grid will experience.

Interview 2 – Dr. Peter Deeney

Dr. Peter Deeney is a post-doctoral researcher in Real Options Analysis and “holds a PhD in
quantitative finance from DCU examining the effects of sentiment in professionally traded
markets, specifically the oil and EU emissions futures markets” (DCU 2017). Multiple
interviews were held with Peter in order to determine the viability of the concept. The key
takeaways from these meetings were firstly, that it is not possible for SunBlock to connect
to the main grid. Rather, we should focus on developing infrastructure that can facilitate
exchanging energy. Secondly, grid backup is not a problem. If a community empowered by
SunBlock does not produce enough energy, they can switch back to the main grid.

Interview 3 – Dudley Charleville

A phone interview was conducted with Dudley on the 17/07/2018, an individual involved
with the Tallaght smart grid test bed as well as an EU funded project titled c-VPP
(Community Virtual Power Plant), an initiative that seeks to establish an organisation and a
structure which will purchase micro-generated electricity from community sources and sell
the energy back to the same prosumers (and others) as and when needed.

The key takeaways from the interview are as follows:

1. Consumers want a service that is flexible, user friendly and offers cost savings.
Furthermore, many households involved in the Tallaght smart grid are seeking a service
that offers storage appliances as an additional offering.
2. In targeting such communities like Tallaght, SunBlock should leverage how we plan on
tackling climate change and energy security. These are two issues Dudley believes are
the most pressing.
3. Numerous households in the community are aware that excess renewable energy is
running back into the grid with no added compensation. The lack of incentive is
preventing many in the community from purchasing solar PV systems.

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Interview 4 – Dara Ó Maoildhia

Dara is a member of Aran Islands Renewable Energy Limited, a non-profit cooperative

whose aim is to make the three Aran islands carbon neutral and self-sufficient in green,
locally produced energy by 2022 (SEAI 2017c). Furthermore, the cooperative wish to create
a smart micro-grid where each household is a prosumer. Along with Dudley, Dara is involved
in the c-VPP.

A phone interview was conducted on the 22/07/2018. Outlined below are the key
takeaways from this interview:

1. The motivations for pursuing such an aim are as follows:

a. Providing a reason for people to live on the islands.
b. Cleaner energy is environmental friendly.
c. The cooperative believe that it will be cheaper to become self-sustainable than
depending on the main grid.
d. It will add to the comfort of the islands.
e. Making the community more sustainable through owning the energy source.
2. The problems they are encountering in meeting the aim are as follows:
a. Retrofitting homes.
b. Transporting contractors from the mainland.
c. They are numerous logistical problems for external contractors.
d. Locals become impatient when the work is not done quick enough.
e. There are a number of environmental issues including planning blockages on
scientific areas of conservation.
3. Consumer buy-in is not an issue. They are aware that excess energy is running into the
grid and would like to get paid for it. Ideally they would like to own their own circuit on
the island.

Interview 5 – Conor White

A face to face interview took pace with Conor Whyte on the 01/07/2018. Conor is currently
a full stack developer and certified solutions architect for Amazon Web Services. Conor was
previously a founder of a web design business called 3bit designs. We met with Conor on
advice on how to develop our company website.

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The key takeaways from the interview are as follows:
1. The use of bootstrap templates is now best practice in web design. Being able to
successfully edit and add to these templates is paramount to creating a professional
website.
2. Amazon Cognito was recommended by Conor to manage the user login on our website.
He told us that AWS Cognito is a fully managed AWS service to allow users to sign in and
sign up to your website and mobile apps. It scales to millions of users and is fully
managed by AWS. It allows sign in with common other web applications such as
Facebook and Google. As a fully managed service you can easily scale to millions of
users without having to configure anything, AWS manages everything. Its relatively easy
to setup and supports identity access management standards such as Outh and SAML
2.0. Can also easily setup what each user can access i.e. user A can only access resource
B etc.
3. Registering a domain using Amazon Web Services route 53 and hosting the website
using AWS S3 is a convenient and secure method to get a website online.

Appendix 6: Financial Notes

Wages and Salaries

Year 1: One electrical engineer and blockchain developer will be employed for an annual
wage of €20,000 each. Each will own a 7% stake in SunBlock. Furthermore, a sales executive
will be employed in September, four months before launch. The sales executive will have an
annual wage of €25,000.

Year 2: An additional electrical engineer will be employed in year 2 with an annual wage of
€35,000 and receive a 2% stake in SunBlock. The senior electrical engineer and blockchain
developer wage will increase to €35,000. Furthermore, each director will now receive an
annual wage of €20,000.

Year 3: An additional electrical engineer and blockchain developer will be employed in year
3 with an annual wage of €35,000 and receive a 2% stake in SunBlock. Three more
sales/account executives will be employed with an annual wage of €25,000.

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 Wages and Salaries 2019 2020 2021

Niall Yorke – CEO 0 20,000 20,000

John O’Dowd - CTO 0 20,000 20,000

Cillian Kirk - CFO 0 20,000 20,000

Electrical Engineer(s) 20,000 70,000 105,000

Blockchain Developer(s) 20,000 35,000 70,000

Sales/Account Executives 8,333 25,000 100,000

Total Salaries 48,333 200,000 335,000

Subscriptions

There is no subscriptions in year 1 as SunBlock is launching in year 2.

Each community of 100 individuals will generate €72’000 in subscription fees. This is
estimated by 20% of households being consumers only and paying $400 a year and the
other 80% being prosumers and consumers and paying $800 a year.

Bank Loan

SunBlock will take out a bank loan of €75’000 in year 2 (2020) to help fund its launch and
getting communities set up on the platform. The loan will be repaid over 5 years.

5-year loan of €75,000 2019 2020 2021

Loan Principal Repayment 0 1,250 1250

Number of months 0 12 12

Principal Loan Repayment per annum 0 15,000 15,000

Investment Capital
Each member of the management team will supply €25’000 investment capital in year 1
(2019) to help fund SunBlock and its operations.

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Investors

Incubators offer a great opportunity for start-ups to gain resources and services that
normally wouldn’t be available to a start-up due to the associated costs. They usually offer
resources such as mentoring and networking opportunities, specialised equipment and also
seed capital. SunBlock is expecting to obtain €100,000 in seed capital that it requires in
funding. An equity stake is usually required in order to obtain equity capital. Some
incubators usually offer office space as a service but SunBlock has already factored in
securing office space so will be selecting incubators that don’t require start-ups to locate on
their premises. An example of an ideal Incubator programme that SunBlock will target
would be NDRC LaunchPad.

SEAI Grant - Sustainable Energy Community Pilot Grant

SunBlock will acquire a grant of €200,000 from the SEAI in 2020. This grant is a new
initiative which is aimed to encourage small and medium energy projects to get involved in
‘Sustainable Energy Communities’. SunBlock would be suitable for this grant as a Project
Coordinator and would go towards covering the expenses associated with each community.
The maximum that will be granted per application is €200,000 but we are confident that
SunBlock would be granted the full amount because the funds relate to 8 community
projects being established in 2020. Assuming this, each community would be allocated
€25,000 to cover the costs of that community start-up costs.

SEAI Grant 2019 2020 2021

Sustainable Energy Community Pilot Grant 25000

Number of Communities (x8)

Total Grant Value 200,000

Enterprise Ireland Funding

SunBlock will receive a €50’000 equity investment from Enterprise Ireland’s Competitive
Start Fund for high potential start-ups. In order to be eligible for this SunBlock must be

SUNBLOCK 112
considered a high potential start up. This is defined as a company who can offer their
service in international markets (which SunBlock plans to in the future) and has the
potential to create 10 jobs and €1 million in sales.

Batteries

100 Lithium ion batteries have been included into the expenses for each community as they
will be leased for each community in order to effectively implement the SunBlock platform.
The batteries have been estimated to be €1,500 each in 2020 and this lease will be taken
out over 5 years. This equates to €30,000 for each community. The number of communities
increase from 8 in 2020 to 18 in 2021 so the lease amount increase accordingly.

Batteries 2019 2020 2021

Battery Leases (1 Community x 100 30,000 30,000

batteries)

Number of Communities 8 16

Total Batteries Cost 240,000 480,000

Smart Meters

The standard price for a smart meter is currently €200.00 as we will be bulk buying we
expect to gain an economy of scale and receive the smart meters for €150.00. To keep costs
down in year 2 we will lease these smart meters over two years. All households in a
community will need a SunBlock smart meter.

Token Exchange Listing

SunBlock will need to issue the SunBlock token on a cryptocurrency exchange. We have
based this price on the price for getting listed on Bittrex which is 3 bitcoins or approximately
€20’000 euro. (Coinist, 2018)

SUNBLOCK 113
Amazon Web Services

SunBlock will use AWS for website hosting, domain name registration and cloud storage.
These costs are estimated based on the guidelines given on the AWS website. In January
2019 there will be an additional cost of €15.99 for purchasing the domain SunBlock-
energy.eu

Breakdown of Additional Expenses

2019 2020 2021

Rent
Dogpatch Labs 24,000

Rental Space in Swords 30,000 30,000

Total Rent 24,000 30,000 30,000

PRSI Calculation

Employers PRSI @ 10.75% (Employees earning > 4,341.08 13,023.26 32,558.14

€19,552)

Monthly payments of PRSI 4,431.08 13,023.26 32,558.14

Marketing Costs

Social Media 2,000 2000 5,000

Exhibitions/Events 4,000 5000 10,000

Online Advertising 2,000 2000 5,000

Total Marketing Costs 8,000 9000 20,000

Selling and Administration Expenses

Registering the company 125 0 0

Telephone 1200 1500 1800

Printing and Stationary and other Miscellaneous costs 300 300 300

SUNBLOCK 114
Website Maintenance 100 100 100

Travel expenses 0 4000 8000

Total selling and administration expenses 1671 5880 10250

Consulting Fees

Legal 3,000 4,000 4,000

Accountant 7,000 8,000 8,000

Total Consulting Fees 10,000 12,000 12,000

SUNBLOCK 115
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