Blog items for latest Blog page.

Tag Archive for: trending

The BIG (but hidden) deal in the Inflation Reduction Act and other upcoming regulations

/ /by

Following the $1.2 trillion Infrastructure Investment and Jobs Act (or Bipartisan Infrastructure Law) last year, an additional $437 billion in Tuesday’s Inflation Reduction Act may seem like small change. 

It’s not.

Unless you’re into the policy details like VIA is, one thing that may have gone under the radar is that there’s the potential to add billions of dollars to consumers’ wallets and purses each year. The reason isn’t the tax credits or incentives in the bill itself (although that’s certainly part of it).

There are two different pieces of legislation and regulation that are going to make this happen. The first is this week’s Inflation Reduction Act and second is FERC 2222. The rule came out a few years ago, but won’t go into full effect until 2023. This is a national (except Texas) rule that makes it possible for pretty much anyone to participate in the wholesale energy markets. 

Wait, wholesale what?

In short, FERC 2222 says that consumers of a certain size (individually or aggregated together) can buy and sell energy at the same price that a multi-billion dollar company can. Up until now, most consumers were paid or saved whatever their going retail rate was (e.g., $0.15 to $0.30 per kWh) for reducing their consumption, shifting the time of their consumption, or selling their generation (e.g., solar) back to the grid. While not nothing, wholesale electricity rates can fluctuate dramatically. For example, during emergencies, wholesale prices can be MUCH higher (e.g., $20 per kWh). Those volatile, skyrocketing prices are becoming more frequent and lasting longer. We’ll actually be talking about the drivers of that volatility in an upcoming blog post.

The impact is that, by some estimates, a consumer could earn $500 to $1,000 (your mileage may vary) per year through various demand response programs. That’s with retail pricing. With wholesale rates, those cash payments will be significantly higher.

So that’s FERC 2222. What’s the connection to the Inflation Reduction Act?

Well, a lot of incentives are in place for consumers to upgrade to electric heat pumps, add solar, add EVs, and upgrade appliances. Anything new has the potential to be “smart.” That is, remote controlled so it can automate the process of turning on or off when needed. Like during an emergency.

The combination of new “smart equipment” purchased through the Inflation Reduction Act and FERC 2222 mean greater incentives and lower barriers to adoption (automated transactions instead of manual transactions).

If you follow the news, there’s been some backlash against the idea of having a company, like a utility, remote controlling the appliances in your home. 

We agree. That’s why we believe so strongly in our new Web3 solution, Skylight.

Three key benefits of VIA’s Skylight value proposition are:

So, overall, we’re pretty excited about the combination of events playing out right now. For savvy consumers, there’s HUGE potential for additional income and you don’t even need your tax accountant to help you out.

Of course, we’re equally excited that the regulatory direction is in line with VIA’s overall mission to make communities cleaner, safer, and more equitable.

Stay tuned for more upcoming announcements from VIA on this topic.

  1. Text – H.R.3684 – 117th Congress (2021-2022): Infrastructure Investment and Jobs Act
  2. H.R.5376 – 117th Congress (2021-2022): Inflation Reduction Act of 2022
  3. The actual amount will vary by size of home, local tariffs, local grid topology, etc. In many instances, demand response happens through an aggregator who may take as much as 90% of the savings for their role as a middle man.
  4. A demand response program is a program where electricity consumers agree to reduce their power consumption a certain number of times per contract period in return for financial compensation. A twist on this model is the Ford F-150, Duke Energy program. “Pilot incentives will reduce vehicle lease payments for program participants who lease an eligible electric vehicle (EV), including Ford F-150 Lightning trucks. In exchange, customers will allow their EVs to feed energy back to the grid – helping to balance it during peak demand.”

Why Switzerland?

/ /by

Yes, we love chocolate, cheese, and clean mountain air.
That (alone), however, is not why VIA is spending so much time in Switzerland.
Switzerland is the leader in three areas core to VIA: clean energy, data privacy, and blockchain.

Clean Energy

More than 190 countries around the world have pledged to reduce carbon emissions. Switzerland is one of the few that has legislation, a deadline, and active programs to move towards net zero. Not only is this commitment aligned with VIA’s mission, it enables VIA to actively support the clean energy transition and exactly where that transition is happening the fastest. As part of VIA’s commitment to energy and Switzerland, we’re pleased to have been admitted to the Association of Swiss Electrical Companies last week.

Data Privacy 

Arguably no country in the world has a stronger reputation for data privacy than Switzerland. The laws around data privacy continue to evolve and become stricter over time. By being aware of the leading edge of privacy regulations, VIA’s platform is in a position to support any jurisdiction.

Blockchain

Switzerland’s Crypto Valley is to blockchain what Silicon Valley is to software. With over 1,000 blockchain companies and one of the world’s first countries to enact crypto and blockchain legislation, Switzerland is an ideal location to lead blockchain initiatives. Earlier this year, VIA was admitted to the Swiss Blockchain Federation (see photo below). It’s in everyone’s interest to participate in an active innovation community that also has a clear regulatory framework.

Pictured above at the general assembly of the Swiss Blockchain Federation in Zurich: Ray Neubauer, Expansion Manager at VIA, Markus Riner, Head of Digitalization at VSE (Swiss Association of Electricity Suppliers), and Dr. Fabian Streiff, Head of Economic Development Agency of the Canton of Zurich.

If you’re interested in hearing more about how and why we chose Switzerland as our European headquarters, you can watch this ten minute video with our CEO, Colin Gounden being interviewed by the Swiss Ambassador to the U.S.

Rock Science: How Van Halen Invented Smart Contracts

/ /by

Since their debut in the late 1970s, Van Halen has become one of the best-selling bands of all time, selling over 56 million albums in the US alone. Their music defined a genre (and a generation), and inspired countless musicians to follow in their footsteps. But, their impact reaches much further than the music world. In fact, you could argue Van Halen’s reach extends even into the blockchain boom we’re seeing today. How so? Well, Van Halen sort of invented the smart contract. Let me explain.

By Colin Gounden

You may be familiar with one particular bit of lore from Van Halen’s long and storied career: the band’s brown M&M clause. In their 1982 world tour contract rider, which clocked in at an impressive 53 pages, Van Halen specified that in the bowl of M&Ms in their dressing room, there should be “ABSOLUTELY NO BROWN ONES.” Now, the rider also demands herring in sour cream and four cases of Schlitz Malt Liquor beer, so it’s easy to chalk up all this to diva-like antics. However, in his autobiography Crazy from the Heat, former frontman David Lee Roth shares insight into the genius behind this oddly specific request:

“Van Halen was the first band to take huge productions into tertiary, third-level markets. We’d pull up with nine eighteen-wheeler trucks, full of gear, where the standard was three trucks, max. And there were many, many technical errors — whether it was the girders couldn’t support the weight, or the flooring would sink in, or the doors weren’t big enough to move the gear through.”

Roth goes on to explain that because their equipment needed to be handled with such specific care in order to ensure the safety of band and audience members alike:

“[…] as a little test, in the technical aspect of the rider, it would say “Article 148: There will be fifteen amperage voltage sockets at twenty-foot spaces, evenly, providing nineteen amperes . . .” This kind of thing. And article number 126, in the middle of nowhere, was: “There will be no brown M&M’s in the backstage area, upon pain of forfeiture of the show, with full compensation.” So, when I would walk backstage, if I saw a brown M&M in that bowl . . . well, line-check the entire production. Guaranteed you’re going to arrive at a technical error. They didn’t read the contract. Guaranteed you’d run into a problem. Sometimes it would threaten to just destroy the whole show. Something like, literally, life-threatening.”

Not divas at all, Van Halen used this M&M clause as a way to test that their equipment, their band members, and their audience were safe. And their if/then logic (if there are brown M&Ms in the bowl, then the contract wasn’t read carefully) is similar to how the smart contracting functionality of blockchain platform Ethereum works as well.

Similar to traditional contracts, Ethereum smart contracts set specific rules around how users can interact with each other and exchange items of value (e.g., money, information, or property, like band equipment). What makes smart contracts different than their traditional counterparts is their ability to code these rules into a secure blockchain and automatically enforce them. So, transactions on Ethereum can only happen if the specific parameters within the smart contract are met. For example, if Van Halen’s contract rider existed on Ethereum, the band could rest assured knowing that their equipment had only been handled by those who had followed the exact parameters of their contract.

Let’s face it: we’re not all rockstars like Van Halen and blockchain isn’t exactly a consumer technology (at least, not yet), so who does smart contracting benefit? Well, for starters: high-stakes industries like energy that historically haven’t been able to implement AI initiatives because of data security concerns. AI needs lots of data to make predictions, so for companies with highly confidential data, like utilities, lack of secure access to data has been a major blocker for AI. Smart contracting has the potential to spark a massive AI revolution in the industry, and that’s a really big deal.

Let’s say Utility A wants to predict when their transformers might fail. To do this, they would need to provide AI Solution Provider B with data like the exact latitude and longitude of every transformer they operate. This kind of information is incredibly sensitive (and oftentimes, a matter of national security), so without a secure way to share it, utilities could not provide the data necessary for a solution provider to build a customized AI algorithm. However, Ethereum could provide a platform for blockchain-based applications that set specific restrictions around how data can be accessed. In that case, Utility A could set the rule: AI Solution Provider B can access Data C for Purpose D, thus protecting their data from malicious actors or requests.

The potential impact of AI in energy is extraordinary. From predictive maintenance to resiliency planning to grid modernization, AI can improve the reliability and efficiency of operations and service of utilities across the world. And while adopting new technology like blockchain can be daunting for any industry, think of Van Halen’s question from one of their most recent hits: When was the last time you did something for the first time?