Managing tokenized energy using power meter

Abstract

A method is provided for managing transactions in energy units including generating or retrieving at least one scheduling token associated with a first energy generator, the scheduling token comprising at least one value variable defined based on parameters of the corresponding first energy generator, defining a multiple for minting fungible energy tokens associated with the scheduling token, the multiple based in part on the at least one value variable, and generating at least one fungible energy token, where a number of fungible energy tokens generated is defined based on the multiple. The method then proceeds with recording an energy commitment from a first energy provider for generating capacity defined by the at least one scheduling token, and receiving at least one partial fungible energy token from an energy purchaser as payment for the generating capacity defined by the at least one scheduling token.

Description

Attorney Docket: SAND 14219WO MANAGING TOKENIZED ENERGY USING POWER METER CROSS REFERENCE TO RELATED APPLICATIONS

[0001] This application takes priority from Provisional Patent Application No. 63 / 542,194, filed October 3, 2023, the contents of which are incorporated by reference herein. FIELD OF THE INVENTION

[0002] The invention relates to tokenizing and managing tokenized energy or otherwise creating and transacting digital tokens from or based on energy. More specifically, the invention relates to using a measure of energy, such as the kilowatt hour, as a digital token, where the power meter may correspond to or assist in managing an account for tokenized kilowatt hours. BACKGROUND

[0003] Among the biggest challenges facing the energy field at the moment are energy storage and renewable energy financing. Many current developments in the energy infrastructure worldwide are ongoing - creating digital twins, installing smart meters, enabling smart grids, opening the energy markets and introducing more independent producers. Such developments contribute to or open the door to a functioning energy digital token that acts as a digital asset. Much like all other assets, it becomes a store of value, such tokenized assets can be stored, and they can be transferred.

[0004] One problem with the current power / energy business is that it's extremely divided between the power generation, the transmission, and the power distribution. That division has happened in a lot of developed countries for competition reasons and to ensure that everyone has access to the system in a certain way and the end result was an extremely fragmented market.

[0005] The existing energy systems and businesses were built for the legacy and older energy sources & operators where such systems required centralization because ofAttorney Docket: SAND 14219WO the scale and size of operations and energy producers focus on that little margin between the cost price of energy and the selling price on the grid, the transmission profits from transferring the energy units and the power supply companies profit from the margin between the wholesale grid price and selling price. However, building the layer that connects all nodes on the network; i.e generators, distributors, suppliers, traders & consumers, and having renewable energy as the source, changes the current economical formula for the energy markets completely.

[0006] Energy markets show a tendency towards the need for optimized decentralization. Renewables & energy storage are becoming more financially and logistically accessible by the day. This allows for a new mode of generation that is distributed, and that can be far more economically efficient when granularly optimized.

[0007] A factor that allows for a true decentralization of energy is that now there are technologies that guarantee the system’s integrity such as the distributed ledgers / blockchain as a decentralized database using an open distributed ledger in order to win the users’ trust in the system, which is the main entry barrier for decentralization of operation or ownership.

[0008] What makes it all the more lucrative to build a blockchain for the energy operations is that energy is relatively digitally traceable, in the sense that all nodes on the network are connected through meters, so it's easier to trace the flow compared to other commodities. However, a system that can properly organize and allocate resources and payments among market participants is needed in order to leverage this opportunity.

[0009] Energy demand is tied to economic development, and as a commodity, it has a utility value that tends to go higher by design. The medium of exchange of the energy are generally the power grid and networks around the globe, and despite being highly accessible, its usage has been always exclusive to power transfer and only through major players on the system.Attorney Docket: SAND 14219WO

[0010] The creation of a currency / coin / digital token that's built on a distributed ledger that represents and is backed by a standard energy unit allows for fundamentally new economical and business models.

[0011] The presence of a tokenization platform / layer on top of the existing grid could create a reliable and credible medium of exchange that's already highly accessible. Users of such a network could then use the platform to trade the energy units, use it as a store of a value knowing that it's a currency that will always have utility value, generate them, distribute them, or more excitingly, build all the applications and business models on them.

[0012] For example, a generator can sell / offer the future guaranteed production of their power plant from day 1 in the form of energy tokens, and use the capital exchanged to fund further development. All users on the network can have access to the offered tokens and can use them for trade, consumption, etc. in any granular form.

[0013] There are many challenges associated with building such a currency and platform. One such challenge is that such a currency would need to consider energy unit properties. How the currency is minted, how is it transferred, and how is it consumed should represent existing physical properties. However, energy is perishable and destined to be consumed, and therefore the creation of such a currency must take into consideration properties unique the generation and use of energy in the real world.

[0014] Further, there is a need to incentivize participation in such a platform, and there is a need to minimize computational requirements. There is a further need to determine how to properly issue such a currency, and there is a need for such a currency that can coordinate scheduled energy production times and tie value of the currency to the source and time of energy production.

[0015] There is a need for a virtual currency that can support the sale of energy while incorporating characteristics associated with such energy. There is a further need for a platform and system for supporting the use of such a virtual currency in the context of supplying energy.Attorney Docket: SAND 14219WO SUMMARY

[0016] The present disclosure relates to using the power grid as a medium of exchange and the kWh as a token of exchange, sometimes referred to as an S Token. In such an implementation, power meters may act as electronic wallets or may correspond to or assist in managing accounts that can store kWhs or associated coins as digital currency. The power grid will connect millions of producers and consumers with each one of them capable of transacting with others. Producers (big and small) will be able to send cash or kWhs between accounts leveraging their power meters.

[0017] This provides several benefits:

[0018] The power grid and the meters are already in place and require only minor updates.

[0019] The kWh has a utility value so unlike other tokens of exchange, or crypto tokens, if they are not traded, they can still be used to power houses, factories, shops, farms, and so on.

[0020] This approach allows for easy entry to trade for anyone with a compatible power meter and it will also allow consumers with independent power generation systems to not only trade, but also generate a part of the kWh they are trading.

[0021] This approach will encourage investments in renewable energy as a new use for the kWh (as a token of exchange) will add to the economic value and thus the feasibility of renewable energy systems.

[0022] The system tracks energy production and consumption using, e.g., the producers’ & consumers’ smart meters network. It then rewards renewable independent producers with these digital tokens when some measured amount of energy is produced. For example, when one physical kWh is produced, a digital kWh is rewarded or “mined”.

[0023] Producers can then keep the digital kWh stored in the form of digital “kWhs”, sell it to other parties, or exchange it in return for goods & services - as currency would be used, or can be redeemed for an equivalent amount of physical energy. All ofAttorney Docket: SAND 14219WO which is enabled by or supported by the power meter that corresponds to or assists in managing an account for an energy wallet or a digital “battery”.

[0024] Owning digital assets allows token holders to trade their digital kWhs within the digital kWh marketplace, and receive their returns based on its market value. It also allows them to use it as a storage of value to hedge against any price increases or to secure future energy demands.

[0025] In some embodiments, the proposed system can increase or incentivize increased investment in renewable energy. The digital kWh token received when renewable energy is dispatched into the grid encourages further investment in renewable energy sources.

[0026] In some embodiments, the proposed system can increase liquidity in energy markets. The digital kWh as a digital asset is more liquid than physical assets, giving its owners the freedom to use as a store of value, but also as currency.

[0027] In some embodiments, the proposed system can improve energy storage. Despite the kWh being a digital token, it still has its intrinsic value in being equivalent to a physical kWh that can be redeemed at any point in the future and not just at the instant of consumption as would the physical kWh be used.

[0028] In some embodiments, the proposed system can support the easy transfer of Energy. Given its nature as a token that can be transferred, hence its qualities of being a reward to generating renewable energy, it’s physical value as an energy unit, and also it’s value as a potential medium of exchange. In that case it can replace renewable energy certificates (RECs) that are now simply footprint offsetting certificates by providing more value to its owners by having more than one dimension of usage.

[0029] In some embodiments, the proposed system can support improved transparency. Unlike the complexity of the current energy pricing and complex settlement rules, having digital energy token removes the inefficiencies and hidden costs associated with dealing with physical energy units and provides its owners and the whole marketplace transparency in energy pricing and token ownership history.Attorney Docket: SAND 14219WO

[0030] In some embodiments, the proposed system can support improved democratization. The digital kWh marketplace is a decentralized market where peer-to- peer transactions are enabled. This reduces consumers’ reliance on a centralized energy producer.

[0031] It also gives power to anyone within the network to help finance renewable energy sources and reduce the reliance on large financial institutions to fund renewable projects which in turn encourages further participation in the market. This in turn drives the market towards higher competition, leading to lower energy prices and a more efficient market.

[0032] A digital platform is also provided that tokenizes the electrical energy units (kWh) and hence links the physical unit of electrical energy to the digital tokenized currency that represents it on the platform, along for reliable P2P trading and stocking on energy.

[0033] In some embodiments, a method is provided for managing transactions in energy units, where the method includes generating or retrieving at least one scheduling token associated with a first energy generator, the scheduling token comprising at least one value variable defined based on parameters of the corresponding first energy generator.

[0034] The method further includes defining a multiple for minting fungible energy tokens associated with the scheduling token, the multiple based in part on the at least one value variable.

[0035] The method further includes generating at least one fungible energy token, wherein a number of fungible energy tokens generated is defined based on the multiple. The method then proceeds with recording an energy commitment from a first energy provider for generating capacity defined by the at least one scheduling token, and receiving at least one partial fungible energy token from an energy purchaser as payment for the generating capacity defined by the at least one scheduling token.Attorney Docket: SAND 14219WO

[0036] The method then determines that energy has been transferred from the energy provider to the energy purchaser equivalent to generating capacity defined by one of the at least one scheduling token, and removes the at least one scheduling token from the recorded energy commitment, and transmits at least a portion of the at least one partial fungible energy token to the first energy provider. BRIEF DESCRIPTION OF THE DRAWINGS

[0037] Figure 1 illustrates a schematic system in which a method for managing transactions in energy units may be implemented.

[0038] Figure 2 illustrates a method for managing transactions in energy units.

[0039] Figure 3 illustrates states and state transitions for fungible tokens used in transacting in energy units.

[0040] Figure 4 illustrates a transfer of energy tokens in the context of an energy transaction.

[0041] Figure 5 illustrates a transfer of scheduling tokens in the context of an energy transaction.

[0042] Figure 6 illustrates a schematic sequence of energy contracts in the context of the method for managing transactions at consecutive time periods.

[0043] Figure 7 schematically illustrates a world state for a system implementing a method for managing transactions in energy units.

[0044] Figure 8 schematically illustrates a chain of blocks representing state transitions in underlying accounts.

[0045] Figure 9 schematically illustrates fulfillment of a sequence of energy contracts.

[0046] Figure 10 schematically illustrates a transfer of energy tokens.

[0047] Figure 11 schematically illustrates a transfer of scheduling tokens.

[0048] Figure 12 is a swim lane diagram illustrating the issuance scheduling tokens and energy tokens.Attorney Docket: SAND 14219WO

[0049] Figures 13A-B illustrate schematically the implementation of an energy contract.

[0050] Figures 14A-B illustrate the fulfillment of the energy contract of FIGS. 13A-B.Attorney Docket: SAND 14219WO DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0051] The description of illustrative embodiments according to principles of the present invention is intended to be read in connection with the accompanying drawings, which are to be considered part of the entire written description. In the description of embodiments of the invention disclosed herein, any reference to direction or orientation is merely intended for convenience of description and is not intended in any way to limit the scope of the present invention. Relative terms such as “lower,” “upper,” “horizontal,” “vertical,” “above,” “below,” “up,” “down,” “top” and “bottom” as well as derivative thereof (e.g., “horizontally,” “downwardly,” “upwardly,” etc.) should be construed to refer to the orientation as then described or as shown in the drawing under discussion. These relative terms are for convenience of description only and do not require that the apparatus be constructed or operated in a particular orientation unless explicitly indicated as such. Terms such as “attached,” “affixed,” “connected,” “coupled,” “interconnected,” and similar refer to a relationship wherein structures are secured or attached to one another either directly or indirectly through intervening structures, as well as both movable or rigid attachments or relationships, unless expressly described otherwise. Moreover, the features and benefits of the invention are illustrated by reference to the exemplified embodiments. Accordingly, the invention expressly should not be limited to such exemplary embodiments illustrating some possible non-limiting combination of features that may exist alone or in other combinations of features; the scope of the invention being defined by the claims appended hereto.

[0052] This disclosure describes the best mode or modes of practicing the invention as presently contemplated. This description is not intended to be understood in a limiting sense, but provides an example of the invention presented solely for illustrative purposes by reference to the accompanying drawings to advise one of ordinary skill in the art of the advantages and construction of the invention. In the various views of the drawings, like reference characters designate like or similar parts.Attorney Docket: SAND 14219WO

[0053] Figure 1 illustrates a schematic system in which a method for managing transactions in energy units may be implemented. A system for tokenizing and managing transactions may be implemented at and coordinated from a computer or computer network. Such a system would then at least include a memory for storing a plurality of instructions and processing circuitry for implementing such instructions. The processing circuitry may then implement a scheduling token minting module for generating scheduling tokens and an energy token minting module to generate energy tokens, as described in more detail below. The processing circuitry may further implement a ledger module for recording transactions within the context of the system.

[0054] The system may then implement a plurality of user accounts. Such user accounts may include energy generators G1 and G2, which may represent parties who produce energy, such as power plants, solar energy farms, or wind farms. Such user accounts may further include transmitter accounts T1, T2, and T3, which may purchase energy from generators G1 and G2 and transmit to end users. User accounts may further include end users and / or energy loads L1, L2, L3, and L4 which may be the final destination of energy produced. Energy transmitted to loads L1, L2, L3, L4 is typically used and then removed from the system.

[0055] In some embodiments, as discussed below, additional parties may participate in the system as well. For example, transmitter accounts T1, T2, T3 may transmit to distributor accounts D1 prior to the distributor accounts transmitting to loads L1, L2, L3, L4.

[0056] The system may further utilize nodes 1-5 and junctions G1.1, G2.1, G2.2, T1.3, T2.4, and T3.5 as well as, in some cases, optional junctions T1.3.1. Nodes are points within the network where two accounts physically connect, and a junction is a point within the system or network that has an energy meter for measuring energy transmitted across the point and recording transactions between users and typically has exactly one account upstream. As shown, nodes may control flow of energy such that flow can be redirected to different junctions as needed in order to fulfill contracts.Attorney Docket: SAND 14219WO

[0057] In addition to user accounts representing generators, transmitters, distributors, and end users / loads, the system may include a management account that coordinates activity within the system. Accordingly, the management account may coordinate the methods described herein.

[0058] The management account may be managed by an entity, referred to herein as the Sand Authority (SA), and the overall system, including the management account, may be referred to as the Sand Autonomous System (SAS) which is a physically interconnected set of energy providers and consumers willing to accept the same valuation, or a coordinated valuation, of energy. It typically has the following properties: - It defines an S Token representing energy credit. - It defines a T token representing energy delivery schedule. - It utilizes the SA as an entity or system which mints tokens and guarantees their redemption as energy within a certain period from “activation.” - Its state can be changed by a set of member Accounts in a way that can be validated by all members. - Its history and state is documented in a ledger.

[0059] The SAS may further include aspects of the system that are not directly reflected on the ledger described herein. Specifically, the SAS may provide or operate an exchange that can manage transactions in S Tokens, as discussed below. S Tokens minted may then be distributed by way of an exchange such that energy purchasers can purchase S Tokens on the exchange and use them in the method described to purchase energy.

[0060] The SAS may further provide oracles, which may include auditors who physically review an energy production capacity and evaluate it in view of the parameterization discussed elsewhere herein. The oracles may further include energy meters used to provide data to accounts about energy transfer.

[0061] Such an authority SA may then utilize the overall SAS shown in FIG.1 to implement the methods described herein.Attorney Docket: SAND 14219WO

[0062] Figure 2 illustrates a method for managing transactions in energy units. As shown, the method may first generate or retrieve (at 200) at least one scheduling token associated with a first energy generator G1. The scheduling token comprises at least one value variable 210 defined based on parameters of the corresponding first energy generator G1. The scheduling token typically represents or corresponds to a unit of energy capacity from that particular energy generator G1.

[0063] In the embodiments illustrated and discussed, the generator is generally discussed as the party transmitting energy in example transactions. However, it is understood that scheduling tokens, also referred to herein as T Tokens, may be transacted by other user accounts as well, such as transmitters who retrieved those T Tokens from the generator, and who are therefore committing energy associated with the first energy generator G1.

[0064] The method then proceeds to define (at 220) a multiple for minting fungible energy tokens, referred to herein as S Tokens associated with the scheduling token (T Tokens). The multiple is based at least in part on the value variable (at 210) associated with the scheduling token, which in turn links the scheduling token to the corresponding energy generator G1. It will be understood that while the method is described as defining the multiple at 220 following the generation or retrieval of the corresponding scheduling token, in some embodiments, the management account may assign the multiple prior to the minting of T Tokens. Accordingly, the management account may mint or authorize minting of the S Tokens at the same time as the T Tokens, such that when a new T Token associated with newly available energy schedules is made available by an energy generator or on behalf of an energy generator G1, corresponding S Tokens are minted as well.

[0065] Following the definition of the multiple for minting fungible energy tokens (at 220), the method proceeds to generate, or mint, at least one fungible energy token (S Token at 230). A number of fungible tokens generated, or minted, is defined based on the multiple (defined at 220). Accordingly, if the parameter associated with theAttorney Docket: SAND 14219WO first energy generator G1 indicates that the generator is particularly valuable, that may result in a higher multiple, such that a similar unit of generating capacity, e.g., 1 kWh represented by different T Tokens may correspond to a different number of S Tokens based on the parameter associated with the corresponding energy generator.

[0066] In some embodiments, the generating or retrieving of the at least one scheduling token (at 200) comprises evaluating the first energy generator G1 and defining a plurality of system parameters (at 225) associated with the energy generator. This may be based on a physical inspection implemented by an authority implementing the method described. The plurality of system parameters may include a source valuation function defining a value of produced energy relative to generically produced energy. Such a source valuation function may be contained within the corresponding scheduling token as, for example, a component of the value variable. Accordingly, the value variable may be a number of variables combined in, e.g., an array defining different parameters.

[0067] In some such embodiments, the multiple for minting fungible energy tokens is then based at least partially on the source valuation function associated with the scheduling token.

[0068] The plurality of system parameters may further include at least one of an environmental condition impact function, a degradation function, and a risk function, which may be discussed in more detail below.

[0069] The multiple for minting fungible energy tokens may then be based at least partially on the source valuation function at least one of the environmental condition impact function, the degradation function, and the risk function associated with the corresponding scheduling token. The multiple for minting fungible energy tokens, or S Tokens, may be further based on environmental conditions at a location associated with the first energy generator G1 or a time associated with the corresponding scheduling token.

[0070] Once the fungible energy tokens, or S Tokens, are minted, they may be retained by the management account or they may be provided to an energy exchange (atAttorney Docket: SAND 14219WO 240), discussed in more detail below. Accordingly, S Tokens may be fungible and may be made available to energy purchasers who may then purchase S Tokens for use in the system. These energy purchasers may be any of the participants in the system, as discussed above, and would typically be either transmitters, distributors, or customers representing loads.

[0071] Typically, an energy purchaser (e.g., T1) may negotiate an energy purchase from a energy generator (e.g., G1) (at 250). Such a purchase may then be formalized in a contract (e.g., G1-T1) which may then be formalized (at 260) and prepared for execution by the system in the context of the method. Accordingly, in the context of such a contract G1-T1, the system may receive an energy commitment from a first energy provider (G1 at 265), with the energy commitment being defined by the at least one scheduling token. The energy provider G1 may then commit one or more T Tokens representing the corresponding energy commitment. As discussed below in the context of FIG.13A, the result would then be an entry associated with G1 indicating that the corresponding T Token is committed, and an entry associated with the contract G1-T1 indicating that the corresponding T Token is available.

[0072] In some embodiments, an account or ledger entry associated with the contract G1-T1 is created – such an approach is illustrated below. Alternatively, the contract G1-T1 may be managed directly by the management account and tokens associated with the contract may then be represented schematically.

[0073] Similarly, the system may then receive at least one partial fungible energy token, or S Token from an energy purchaser (T1 at 270) as payment for the generating capacity defined by the corresponding scheduling token (or T Token). Accordingly, as discussed below in reference to FIG.13A, S Tokens may then be transferred from an account associated with the energy purchaser (T1) to an account associated with or a ledger entry associated with the contract G1-T1.

[0074] The method then proceeds to monitor energy transmissions by way of an energy meter G1.1. Upon requesting energy corresponding to the committed generatingAttorney Docket: SAND 14219WO capacity (at 275), the energy meter may determine (at 280) that energy has been transferred from the energy provider G1 to the energy purchaser T1, and that such energy transferred is equivalent to the generating capacity defined by one of the at least one scheduling token (e.g., 1 kWh), the method may then remove the at least one scheduling token from the recorded energy commitment (at 290) and transmit at least a portion of the at least one partial fungible energy token to the first energy generator (at 300).

[0075] In such a transaction, two parties G1 and T1 define a contract, commit corresponding resources in advance, and then upon the fulfilment of the contract by an energy provider G1, energy tokens are transferred to an energy provider G1 as payment. However, typically, only a portion of the originally transmitted fungible energy tokens, or S Tokens, are transferred as payment. As discussed in more detail below in reference to FIG.3, S Tokens committed and used for payment may then be taxed by the management account, so as to maintain the integrity of the overall system.

[0076] Such taxed portions of the S Tokens may be destroyed, so as to account for system degradation, or they may be utilized to create incentives for energy generators, such as G2, to support the system by providing redundancy.

[0077] Accordingly, in some embodiments, the method may further comprise, in parallel with the portions of the method already described, generating or retrieving (at 310) at least one secondary scheduling token associated with a second energy generator, such as G2. The secondary scheduling token comprises a value variable 315 defined based on parameters 320 of the second energy generator G2.

[0078] The method then determines (at 325) that the at least one secondary scheduling token, or T Token at least partially provides redundancy for the energy commitment defined by the at least one scheduling token committed by the first energy generator G1.

[0079] The redundancy defined by the secondary T Token is typically managed by the managing account. Accordingly, the managing account, discussed herein as the Sand Authority, or SA, may negotiate a potential backup energy purchase from a energyAttorney Docket: SAND 14219WO generator (e.g., G2) (at 330). Such a purchase may then be formalized in a contract (e.g., G2-SA) which may then be formalized (at 340) and prepared for execution by the system in the context of the method. Accordingly, in the context of such a contract G2-SA, the system may receive an energy commitment from a second energy provider (G2 at 350), with the energy commitment being defined by the at least one secondary scheduling token. The energy provider G2 may then commit one or more T Tokens representing the corresponding energy commitment. As discussed below in the context of FIG.13B, the result would then be an entry associated with G2 indicating that the corresponding T Token is committed, and an entry associated with the contract G2-SA indicating that the corresponding T Token is available.

[0080] In some embodiments, an account or ledger entry associated with the contract G2-SA is created – such an approach is illustrated below. Alternatively, the contract G2-SA may be managed directly by the management account and tokens associated with the contract may then be represented schematically.

[0081] Similarly, the system may then receive at least one partial fungible energy token, or S Token from the management account SA (at 360) as payment for the commitment, but typically not the provision, of the generating capacity defined by the corresponding secondary scheduling token (or T Token). Accordingly, as discussed below in reference to FIG.13B, S Tokens may then be transferred from an account associated with the management account (SA) to an account associated with or a ledger entry associated with the contract G2-SA.

[0082] The method then proceeds to monitor energy transmissions by way of an energy meter G1.1. Upon determining (at 280) that energy has been transferred from the energy provider G1 to the energy purchaser T1, and that such energy transferred is equivalent to the generating capacity defined by one of the at least one scheduling token (e.g., 1 kWh), the method may then release the at least one scheduling token from the recorded energy commitment (at 370) and transmit the portion of the at least one partial fungible energy token to the second energy generator (at 380). Accordingly, theAttorney Docket: SAND 14219WO committed energy capacity, represented by the secondary scheduling tokens, or T Tokens is released such that the second energy generator G2 can commit the energy elsewhere, as the redundancy is no longer required.

[0083] Accordingly, where the first energy generator G1 fulfills its original contract G1-T1, the second energy generator G2 never provides any energy. The portion of the at least one partial fungible energy token to the second energy generator G2 is payment for reserving the energy capacity in order to provide the necessary backup or redundancy in the system.

[0084] Similarly, where the energy capacity represented by a T Token is supplied, as at 280, the corresponding scheduling token is typically consumed or terminated, as the underlying energy has been consumed. However, where the energy capacity represented by a T Token is committed and then released, as at 370, the corresponding T Token may be released and returned to the second energy provider.

[0085] In some embodiments, however, the method may determine that energy has been requested (at 275) in accordance with the energy capacity defined by one of the at least one scheduling tokens, or T Tokens, committed by the first energy provider G1, but was not fulfilled by the first energy provider. In other words, the method determines (at 400), that the first energy provider G1 has not provided the requested and committed energy in accordance with the contract G1-T1.

[0086] In this scenario, the method may further comprise determining (at 410) that energy has been transferred from the second energy provider G2 to the energy purchaser equivalent to the generating capacity defined by the at least one secondary scheduling token. Such a determination may require a corresponding. The method then removes the at least one secondary scheduling token (at 420) from the recorded energy commitment at G2-SA.

[0087] In the context of the schematic system shown in FIG.1, the system notes may be rearranged to allow transfer of energy from G1 to T1, or to otherwise allow transfer of energy from the backup energy provider to the energy purchaser. In thisAttorney Docket: SAND 14219WO context, because the energy has been used, the corresponding scheduling token removed (at 420) is consumed rather than released.

[0088] Upon confirming such transfer (at 410), at least a portion of the at least one fungible energy token is then transmitted (at 430) to the second energy provider G2. The fungible energy token may then be taken from the account associated with the G1-T1 contract and sent to G2. This may be by way of the management account SA or it may be by way of a direct connection.

[0089] In some embodiments, the transfer (at 410) of the at least a portion of the at least one fungible energy token to the second energy provider G2 is in place of the transfer of the at least one partial fungible token that would otherwise be transferred (at 380) as payment for the second energy provider’s G2 commitment to act as a backup. In other embodiments, both payments may be transmitted to the second energy provider G2 as payment for both the commitment and the actual provision of energy under the contract.

[0090] In some embodiments, the same fungible energy tokens (S Tokens) may be utilized as both payment for supplying energy by either energy provider G1, G2 and payment for commitments by second energy providers G2. Accordingly, the at least one partial fungible energy token received from the energy purchaser T1 (at 270) may comprise a number of tokens defined by the multiple associated with the corresponding scheduling token (or T Token). The at least one partial fungible energy token received is then bound within a system implementing the method pending a determination that the energy has been transferred from the energy provider to the energy purchaser (at 290). Upon determining that the energy has been transferred (at 290), a portion of the at least one fungible energy token (S Token) may then be transmitted to an operator of the system implementing the method (SA) prior to transmitting the at least one fungible energy token, or the remainder of the same, to the first energy provider (at 300).

[0091] In such an embodiment, the at least one partial fungible energy token received as payment for commitment for generating capacity by the second energyAttorney Docket: SAND 14219WO provider G2 (at 410) is a portion of the portion of the at least one fungible energy token transmitted to the operator of the system. In some such embodiments, the operator of the system SA may maintain a wallet of S Tokens extracted from transactions as a tax which can then be used as an incentive for future iterations of the method described. Accordingly, the relevant portions committed may be available from earlier transactions.

[0092] Similarly, upon determining that the energy has been transferred from the energy provider G1 to the energy purchaser T1, only a portion of the at least one partial fungible energy token (S Token) received from the energy purchaser is transmitted to the first energy provider, while an additional portion is extracted by an operator of a system (SA) implementing the method.

[0093] The portion extracted by the operator of the system (SA) may be at least partially destroyed to account for system degradation. A size of the portion to be destroyed may be defined by a degradation function associated with the corresponding scheduling token.

[0094] Further, the portion extracted may be at least partially utilized by the operator of the system (SA) to fund reservation of at least one secondary energy token to account for risk associated with a failure of the first energy provider G1 to provide committed energy. A size of the portion to be utilized for reservation may then be defined by a risk function associated with the corresponding scheduling token.

[0095] In some embodiments, the scheduling token, or T Token, is a plurality of scheduling tokens corresponding to energy units made available by the first energy generator G1. Each such scheduling token may be fungible and based on the corresponding energy generator G1. The secondary scheduling tokens may also be from a plurality of scheduling tokens, each associated with a second energy generator G2. Such secondary scheduling tokens (also T Tokens) may also be fungible with each other, but the scheduling tokens associated with the first energy generator G1 may not be fungible with the scheduling tokens associated with the second energy generator G2.

[0096] The two primary tokens discussed above are now described in more detail.Attorney Docket: SAND 14219WO

[0097] The S Token is a token that represents energy credits in that it can be redeemed as a certain amount of energy qualified by some parameters related to the energy source. The redemption of these energy credits within a certain amount of time from activation is typically guaranteed by the SA, and this may be implemented by way of an aging characteristic. In order to capture this qualification by the energy source parameters, a mapping between the energy to be generated and the S Tokens reflecting the value of energy is necessary. This may be by way of the minting of S Tokens in the context of the creation of T Tokens, as discussed below. It will be understood that while the tokens are referred to herein as S Tokens, they may similar be referred to with other names, such as kWh-coin or the like.

[0098] The S Tokens may be created based on a source based definition. In this approach, the S Token is only meant to capture the physical properties of any energy source regardless of environmental conditions. At the broadest level, energy sources can be defined by a set of finite properties m. Consider the set of m-tuples:of each property. The number of S Tokens corresponding to the energy produced by the source defined by property m-tuple:

[0101] can be treated as a multiplicative adjustment of the energy, i.e. an injective mapping:at least one element that represents the standard source properties and maps to a single S Token.Attorney Docket: SAND 14219WO

[0103] A discrete and simplistic form of the above may define a finite set K of energy source types or categories, then the S Tokens associated with the production of ɛ kWh of energy from source type , is . This allows the SAS to categorize the different energy source types and define their values relative to each other.

[0104] The choice of which properties are chosen may be a reflection of how value relations between sources is defined in the SAS, possibly to incentivize the qualification of certain sources or properties associated with a source. One example is the use of a physical parameter such as carbon footprint that can capture both the impact of ongoing production as well as the manufacturing and development of the energy source.

[0105] The S Tokens may be generated based on source and condition, rather than just source. While the source based definition can provide a measure of the value of energy produced, a more accurate but complex definition should involve the environmental conditions surrounding production. While those factors tend to affect renewables more, they also have an impact on energy efficiency and hence valuation of energy production even in fossil fuels.

[0106] In this case, the value of the token as energy credit has a dependence on the source properties which is affected by the environmental conditions. We would then need to adjust the above formulation of σ to reflect this. Let the set of relevant environmental conditions be the set of n-tuples:the well-ordered sets define the possible values for each condition, then the number of S Tokens corresponding to the energy produced by the source can be adjusted by an adjustment function:Attorney Docket: SAND 14219WO

[0108] which means that for every set of source properties, there exists at least one element that can be considered the standard conditions for that particular source.

[0109] Based on that and the above definition of , the number of S Tokens is an injective mapping: changes are based on time andγ can seen as a over we may express γ as γ(t) or γ(n) where n is the Δ0-interval index.

[0111] It should be noted that the case above (source-only definition) is a limit case of this definition which assumes that energy value is independent of the environmental conditions since:Aging – Over time, the energy delivery capacity of a static infrastructure is not constant. It may, for example, rely on hardware that degrades over time. Without the maintenance of existing equipment and the addition of new equipment, an SAS would not be able to deliver the same amount of energy. Noting that degradation is cumulative and dependent on cumulative energy production at specific conditions, all of which are functions of time, then for any subset of the infrastructure, the impact at any instance can be expressed as a mapping:and less error prone to consider a single degradation value as an average over time, i.e.:

[0114] Since the S Token definition for any source-condition tuple is a multiplicative factor of the energy produced, the same factor can be applied to the number of tokens. So, we may define an additive adjustment to the number of tokens:Attorney Docket: SAND 14219WO

[0115] We may also introduce an average adjustment.

[0116] The T Token represents energy schedules made available by participants in the SAS.

[0117] In the examples presented here, energy schedules are defined as energy delivered during a given time interval at a certain SAS junction in the grid. This energy is quantified in kWh and qualified by the S token which captures the source properties including potentially the impact of environmental conditions. For each interval n at junction j, the energy schedule is a mapping: ,

[0118] Where ɛ is energy and s is the number of S Tokens corresponding to ɛ, and d is the number of S Tokens accounting for degradation. The energy schedule for a generator is the sum of the energy capacity based on the generation capabilities of the different sources at the environmental conditions of the time nΔ0after genesis. This means that given a set of m sources with source parameters , then: .the d term is the risk associated with the ability of the upstream provider at junction j (recall that the SAS junction has a single upstream account) to fulfill any promises it makes to deliver energy produced with certain parameters under certain conditions. For this, redefine:Attorney Docket: SAND 14219WO on time, the schedule itself is:adjustment to energy production for source k.

[0123] In the limit case where there are source-only considerations, we have:on the tuple by name, i.e.:

[0125] Note that schedules are an abelian group allowing for the addition and subtraction of schedules.

[0126] Given:

[0128] Also note that schedules are partially ordered using the following two relationships:Attorney Docket: SAND 14219WO (n, j, T(j, n)).

[0130] The Sand Authority is responsible for governance by ensuring that the tokens reflect the value of energy delivery. In the embodiments described, where the currency is consumable energy credit, and the base commodity is energy, this implies the following two constraints.

[0131] Value: That the number of tokens circulating reflects the available energy production capacity of the system according to the value parameterization defined for the SAS above.

[0132] Reserve: That the combination of different active commitments (i.e. that have been promised and not yet fulfilled) to deliver energy at any point allow for the SA to cover its redemption commitment when necessary.

[0133] In order to avoid violating those two constraints, the SA has three mechanisms for intervention: - Minting: Issuing S tokens to reflect SAS additions; - Revocation: Removing tokens from circulation to account for degradation; - Guarantee Contracts: Entering into contracts with other parties to commit the necessary T tokens guaranteed for activated S.

[0134] Each of these elements are described at varying levels of detail in the context of the method of FIG. 2.

[0135] From the earlier definition of the S and T tokens, the energy production capacity of the SAS is required to define the system through:

[0136] Parameterization: For the entire SAS, define what parameters affect the evaluation of S and T along with how they do so, i.e. the definition of the functions , , and Θ.Attorney Docket: SAND 14219WO

[0137] Specialization: For energy producing sources, defining the values of the parameters required for the system functions

[0138] The SA is responsible for defining the following:

[0139] The source valuation function which includes the sets A1,...,Am, i.e. the domains of the source properties.

[0140] The environmental condition impact function η

[0141] The degradation function Θ

[0142] The risk function ρ

[0143] These functions reflect the concerns and the value system of the SAS, such as the availability of certain types of resources or the incentives promoted by the SAS community.

[0144] It is clear from the above that the framework is based on a valuation of the energy production capacity according to the system parameterization. This requires a physical review of the production capacity for any delivery system, based on which, the source production properties may be defined.

[0145] The SA may choose to offload this to third party auditors certified to physically validate the system.

[0146] Regarding governance of the SAS, once any production capacity has been added to the SAS (i.e. after review and system definition), the following actions may be immediately taken by the SA:

[0147] The S Token valuation for the new capacity is defined.

[0148] Publish the schedule for the added generation capacity.

[0149] New S tokens for the capacity is released to the exchange.

[0150] During the transfer of any energy, a tax amount of S tokens equivalent to the deduction is transferred back to the SA. The SA uses those tokens for one of two

[0151] Destroy them to account for the degradationAttorney Docket: SAND 14219WO

[0152] Use them to incentivize upstream providers to enter a certain contract, such as the guarantee contracts discussed below and referenced in the context of the method of FIG.2.

[0153] In order to ensure that the S tokens are backed by energy in the case of the failure of the original provider to honor the value of the tokens in a contract, guarantee contracts are made by the SA with other providers at any SAS node that goes to the same downstream client within the time frame of the SAS guarantee. These contracts have the following special features:

[0154] The commitment is against the same tokens of the guaranteed contracts. The point being that the SA will never use them to transfer energy unless they were unused in the guaranteed contract.

[0155] The SA uses the risk tokens (the ρ part of the tax tokens) to incentivize the providers to enter the contract.

[0156] In the embodiments discussed herein, a blockchain managing the contracts can only be operated on by an SA account, which can be one of three types:

[0157] The Sand Authority has a special account.

[0158] External Accounts: These are the different types of actors within the SA

[0159] Contracts: Blockchain code that executes transfers of S Tokens and energy schedules.

[0160] All accounts typically have and ID and a state. In the examples described herein, the state of the account has the following structure: - Available Schedule - Committed Schedule - S-wallet

[0161] Along with the state, the account may have the following intrinsic properties: - Account SA Key pair: Private-public key pair for signing communication with the SA.Attorney Docket: SAND 14219WO - Account Key pair: Private-public key pair for signing communication with all nodes - A unique Account ID assigned

[0162] Contract accounts have an intrinsic structure that includes: - Provider account ID - Consumer account ID

[0163] Figure 3 illustrates states and state transitions for fungible tokens used in transacting in energy units.

[0164] The state transitions of the S Token can be shown in FIG.3. The token starts as Free where is owned by some external account

[0165] The token is then Bound as part of a contract proposal.

[0166] If the contract is not validated, all its bound tokens are returned to Free.

[0167] If the contract is validated, then when two contracts are created. One is between the provider (G1) and the client (T1), and the other is the Guarantee Contract between the SA and the backup provider (G2). The same S tokens may be bound for both contracts. Alternative approaches are described above with respect to the method of FIG. 2.

[0168] When the condition is validated, the tokens bound to the contract become Active.

[0169] For the energy transfers fulfilled, the equivalent tokens go back to Free and are transferred to the provider G1.

[0170] The deficit S Tokens are moved to Guarantee to get redeemed at a later point.

[0171] The token may have already been committed to a backup contract. This contract is now validated and moved to the original consumer, so its tokens are Bound.

[0172] Some of the tokens are transferred to the SA as Tax tokens.

[0173] Some of the tokens are destroyed as Invalid to exit circulation accounting for system degradation.Attorney Docket: SAND 14219WO

[0174] Some of the tokens are used by the SA, committing them in Guarantee Contracts, moving them back to Bound. These incentivize the backup provider to enter a contract.

[0175] Figure 4 illustrates a transfer of energy tokens in the context of an energy transaction. Figure 5 illustrates a transfer of scheduling tokens in the context of an energy transaction. It will be noted that the discussion herein relates to a specific implementation, and other implementations are contemplated as well.

[0176] Transactions are operations on the blockchain that change the world state of the SAS. In other words, each transaction is a mapping from one world state to another, or specifically from some subset of the world state. It should be noted that some of these transactions require off-chain communication.

[0177] Register of a new entity. This transaction adds an external account to the world state. Every account starts from the initial state: - Available Schedule: T0 = (0,0,0) - Commit Schedule: T0 = (0,0,0) - S-wallet: Empty

[0178] Creation of a new contract. This transaction creates a new contract account. It may be the result of off-chain negotiation between the two parties. When both parties agree, the contract is signed using the private signatures of the two Account SA keys. Only the SA should be able to verify these, the SA will verify what it needs including the ability to back the claims. When this is done, then the SA can validate the transaction and the account is added onto the world state with the initial state.

[0179] Transfer. This transaction, shown, e.g., in FIG.3, moves S tokens from the wallet of one account to another. It means that all bound tokens being transferred also move to free.

[0180] Commit. This transaction, shown, e.g., in FIG.4, moves T tokens from the Available schedule of one account to another. It has a dual impact on the states of the source and the destination. Let the source have Available Schedule Ts, Commit ScheduleAttorney Docket: SAND 14219WO Bs, and the destination have Available Schedule Td, then the Commit Transaction for schedule has the dual impact of: energy schedule from the Available of the source to the Available of the destination: i.e. Ts=Ts-T, Td=Td+T

[0182] Move the same energy schedule from the available to the committed in the source, i.e. Bs=Bs+T.

[0183] Figure 6 illustrates a schematic sequence of energy contracts in the context of the method for managing transactions at consecutive time periods.

[0184] The diagram illustrates the relationship and interactions between major stakeholders and accounts of the network.

[0185] Energy is ultimately always generated by a generator and consumed / terminated by the load. In this illustration, for the energy to flow form the generator to the load, it passed through to other accounts that the transmitter and the distributer. Between any account and the other connected account, there’s an energy meter capturing the real-time values of the energy flow.

[0186] The dotted arrow line is the energy flow, in this case the energy moves from the Generator (G1) to the Transmitter (T1) and there’s a meter in-line (O1) that captures the energy flow from G1 to T1 in real-time. The Energy is then transmitted from the transmitter (T1) to the distributor (D1) and then to the load (L1). Between each account node, there’s an energy meter such (O2) and (O3).

[0187] The solid line illustrates the data flow between accounts and oracles on the system. The contract accounts between actors’ accounts are created to define and manage the relationship and interactions between actors’ accounts. (G1-T1) for example is the contract that manages the relationship between G1 & T1 on the system and relies on the oracle (O1) for capturing the energy flow and acting accordingly to update the world state when needed.Attorney Docket: SAND 14219WO

[0188] Each transaction that changes the world state across any account is recorded on a sequential block on the blockchain sequentially, starting with block (T0) and building a new block (T+1) with every sequential transaction.

[0189] As noted above, in the context of the method described, the energy provider may actually be an energy generator G1, an energy transmitter T1, or an energy distributor D1. Similarly, the energy purchaser may be an energy transmitter T1, an energy distributor D1, or a party operating a load L1.

[0190] Further, as shown, an energy meter O1, O2, O3 is provided between all parties of potential transactions. Accordingly, when an energy meter provided between the energy provider and the energy purchaser determines that energy has been transferred from the energy provider to the energy purchaser, such a determination may trigger the removal of the corresponding at least one scheduling token from the recorded energy commitment in the corresponding contract and transmission of the corresponding portion of the fungible energy token to the energy provider.

[0191] Figure 7 schematically illustrates a world state for a system implementing a method for managing transactions in energy units. Figure 8 schematically illustrates a chain of blocks representing state transitions in underlying accounts.

[0192] The ledger for the system described may have a typical structure associated with blockchain technology, with two main components:

[0193] A world state, where the world state is a composite of states of all of the different accounts, and a blockchain, where a chain of blocks, such as that shown in Fig. 8, represents the state transitions for the accounts since genesis. Each block is itself made up of transactions.

[0194] Figure 9 schematically illustrates fulfillment of a sequence of energy contracts. As shown, the ledger illustrated provides the world state changes across the blockchain with every transaction on the system, specifically in the context of standard contract fulfillment.Attorney Docket: SAND 14219WO

[0195] In some cases, the governance mechanisms discussed above utilize the same transactions as above. However, some transactions are only to be initiated by the party implementing the method, SA, specifically those related to issuance. It is helpful to think of the SA state as having separate wallets for the S tokens in different states as shown in the FIGS.

[0196] Figure 10 schematically illustrates a transfer of energy tokens from the managing account SA to the wallet of a destination account, here the exchange. The tokens transferred are in the Free state.

[0197] Figure 11 schematically illustrates a transfer of scheduling tokens. As shown, the transaction adds energy schedules to the available schedule of the destination account.

[0198] Figure 12 is a swim lane diagram illustrating the issuance scheduling tokens and energy tokens.

[0199] The figure shows the interaction around issuance of tokens based on the addition of new infrastructure. This infrastructure provider has an SA account and in the following will be called the Generator.

[0200] Initially, the Generator (G1) requests that it gets an added Available Schedule. The SA then assigns an auditor to review.

[0201] The Auditor may physically review the installation and based on the System Parameterization (as discussed in detail above, it may define the new installation parameters.

[0202] The SA evaluates the generation capacity (i.e. T and S) for the new addition and allows the client to review. The Generator (G1) may then decide to review or dispute and request another review. If the client (G1) accepts, they request for the SA to publish.

[0203] The SA then creates an Avail transaction for the Generator account (G1) with the new T Tokens.Attorney Docket: SAND 14219WO

[0204] The SA mints new S Tokens corresponding to and based on the parameters associated with the T Tokens. The SA then offers the new tokens on the exchange.

[0205] Once the exchange responds, the SA creates a Deposit transaction for the Exchange account on the chain to add the new S tokens.

[0206] Figures 13A-B illustrate schematically the implementation of an energy contract. Figures 14A-B illustrate the fulfillment of the energy contract of FIGS.13A-B.

[0207] The figures shown illustrate a basic energy transfer scenario. Such a scenario as illustrated assumes: - G1 has been Availed a schedule (as discussed in more detail above); - S tokens have been minted for the capacity of G1 and G2 (as discussed in more detail above); - T1 has bought S tokens from the exchange; and - G1 and T1 have negotiated a contract off the chain whose terms can be executed in block chain code (using the Transfer / Commit transactions from meter readings).

[0208] Contract Creation - At time 0: - G1 has energy available (T Tokens) in their account state, and none committed, as well as only its risk S tokens (R); - T1 has S Tokens and wants an energy schedule E from the Available Schedule of G1; - G1-T1 negotiate a contract off the chain; and - G1 and T1 sign the contract and publish it on the chain using a CreateContract transaction.

[0209] During validation of block 0 – the SA reviews the contract G1-T1 for: - The correctness of the signatures; - The validity of the junction (i.e. that T1 can take energy from G1);Attorney Docket: SAND 14219WO - The validity of the schedule according to any other commitments made by G1; and - The availability of a backup schedule E’ in G1 or G2. Assume it found it in G2.

[0210] If the contract is invalid, the contract is permanently removed, and the process stops. However, if the contract is valid, it is temporarily removed from the chain until backup is confirmed.

[0211] At time 1:

[0212] The SA initiates a CreateContract transaction for G2-SA on the backup schedule in G2 and adding a term that rewards G2 with the S Tokens designated for risk (R) in the transaction G1-T1. The SA then generates a CreateContract for G1-T1.

[0213] The validation of block 1 repeats the checks, until backup has been made available or all available generators have rejected.

[0214] If the validation succeeds, then the world state has changed to include both contract accounts, G1-T1 and G2-SA. In the schematic shown, and as described above, the contract may be viewed as an account on the chain and acts as an escrow account.

[0215] At time 2 (assuming block 1 has been validated):

[0216] G1-T1 initiates a Commit transaction for the schedule E from G1 to G1- T1. G1-T1 also initiates a Transfer transaction for the equivalent S minus the risk tokens from T1’s wallet to G1-T1. This pair of transactions is shown in FIG.13A.

[0217] G2-SA initiates a Commit transaction for the schedule E’ from G1 to G1- SA. G2-SA initiates a Transfer transaction for the equivalent S from T1’s wallet to G1- SA. Those tokens are marked as Guarantee. This pair of transactions is illustrated in FIG. 13B.

[0218] At time 2: - Now G1-T1 has available schedule T Tokens that were committed from G1 and the S tokens that were transferred from T1. - Now G2-SA has available schedule T Tokens that were committed from G2 and the S tokens as well as the risk tokens R that were transferred from SA.Attorney Docket: SAND 14219WO

[0219] This result is shown in FIGS.14A, B.

[0220] Contract Fulfillment: (assuming it’s a postpaid contract where S-coins are paid after energy fulfillment) - O1 which is the energy meter between G1 and T1, i.e. the oracle feeding data to G1-T1. - O2 which is the energy meter between G2 and T1, i.e. the oracle feeding data to G2-SA.

[0221] At time t: (in case of G1 able to fulfill 100% of the committed energy / T Tokens): - O1 feeds G1-T1 data about the energy transferred from G1 to T1. This is a schedule entry F(j,n). - G1-T1 creates a Transfer transaction of F(j,n)[s] tokens from G1-T1’s S-wallet to G1’s wallet. Those tokens transition in state from Bound to Free. - G1-T1 creates a Consume transaction of the transferred energy so that the tokens get removed from the Commit Schedule of T1. - G1-T1 creates a Transfer transaction for the F(j,n)[d] tokens to the SA wallet. - G2-SA creates a Transfer transaction for the risk S tokens as a reward for G2 having taken the commitment.

[0222] At time t: (in case of G1 is not able to fulfill any of the committed energy – assume failed 100% on fulfillment): - G1 fails to fulfill energy through O1. - G2 fulfills the energy through O2. - G2-SA will create a Transfer transaction for the equivalent F(j,n)[s] tokens to G2’s wallet. - G2-SA will create a Transfer transaction for the F(j,n)[d] tokens to the SA wallet.

[0223] The functions of the various elements shown in the figures can be provided through the use of dedicated hardware as well as hardware capable of executing software in association with appropriate software. When provided by a processor, theAttorney Docket: SAND 14219WO functions can be provided by a single dedicated processor, by a single shared processor, or by a plurality of individual processors, some of which can be shared. Moreover, explicit use of the term “processor” or “controller” should not be construed to refer exclusively to hardware capable of executing software, and can implicitly include, without limitation, digital signal processor (“DSP”) hardware, read-only memory (“ROM”) for storing software, random access memory (“RAM”), and non-volatile storage. Moreover, all statements herein reciting principles, aspects, and embodiments of the invention, as well as specific examples thereof, are intended to encompass both structural and functional equivalents thereof. Additionally, it is intended that such equivalents include both currently known equivalents as well as equivalents developed in the future (i.e., any elements developed that perform the same function, regardless of structure).

[0224] Thus, for example, it will be appreciated by those skilled in the art that the block diagrams presented herein represent conceptual views of illustrative system components and / or circuitry embodying the principles of the invention. Similarly, it will be appreciated that any flow charts, flow diagrams, state transition diagrams, pseudo- code, and the like represent various processes which may be substantially represented in computer readable media and so executed by a computer or processor, whether or not such computer or processor is explicitly shown.

[0225] The embodiments of the invention disclosed herein may comprise a system, a method, and / or a computer program product. The computer program product may include a computer readable storage medium (or media) having computer readable program instructions thereon for causing a processor to carry out aspects of the present invention. The computer readable storage medium can be a tangible device that can retain and store instructions for use by an instruction execution device.

[0226] The computer readable storage medium may be, for example, but is not limited to, an electronic storage device, a magnetic storage device, an optical storage device, an electromagnetic storage device, a semiconductor storage device, or anyAttorney Docket: SAND 14219WO suitable combination of the foregoing. A non-exhaustive list of more specific examples of the computer readable storage medium includes the following: a portable computer diskette, a hard disk, a random access memory (RAM), a read-only memory (ROM), an erasable programmable read-only memory (EPROM or Flash memory), a static random access memory (SRAM), a portable compact disc read-only memory (CD-ROM), a digital versatile disk (DVD), a memory stick, a floppy disk, a mechanically encoded device such as punch-cards or raised structures in a groove having instructions recorded thereon, and any suitable combination of the foregoing. A computer readable storage medium, as used herein, is not to be construed as being transitory signals per se, such as radio waves or other freely propagating electromagnetic waves, electromagnetic waves propagating through a waveguide or other transmission media (e.g., light pulses passing through a fiber-optic cable), or electrical signals transmitted through a wire.

[0227] Computer readable program instructions described herein can be downloaded to respective computing / processing devices from a computer readable storage medium or to an external computer or external storage device via a network, for example, the Internet, a local area network, a wide area network and / or a wireless network. The network may comprise copper transmission cables, optical transmission fibers, wireless transmission, routers, firewalls, switches, gateway computers and / or edge servers. A network adapter card or network interface in each computing / processing device may receive computer readable program instructions from the network and forward the computer readable program instructions for storage in a computer readable storage medium within the respective computing / processing device.

[0228] Computer readable program instructions for carrying out operations of the present invention may be assembler instructions, instruction-set-architecture (ISA) instructions, machine instructions, machine dependent instructions, microcode, firmware instructions, state-setting data, or either source code or object code written in any combination of one or more programming languages, including an object oriented programming language such as Smalltalk, C++, Java, Perl, Python or the like, andAttorney Docket: SAND 14219WO conventional procedural programming languages, such as the "C" programming language or similar programming languages. The computer readable program instructions may execute entirely on a user's computer, partly on the user's computer, as a stand-alone software package, partly on the user's computer and partly on a remote computer or entirely on the remote computer or server. In the latter scenario, the remote computer may be connected to the user's computer through any type of network, including a local area network (LAN) or a wide area network (WAN), or the connection may be made to an external computer (for example, through the Internet using an Internet Service Provider). In some embodiments, electronic circuitry including, for example, programmable logic circuitry, field-programmable gate arrays (FPGA), or programmable logic arrays (PLA) may execute the computer readable program instructions by utilizing state information of the computer readable program instructions to personalize the electronic circuitry, in order to perform aspects of the present invention.

[0229] Aspects of the present invention are described herein with reference to flowchart illustrations and / or block diagrams of methods, apparatus (systems), and / or computer program products according to embodiments of the invention. It will be understood that each block of the flowchart illustrations and / or block diagrams, and combinations of blocks in the flowchart illustrations and / or block diagrams, can be implemented by computer readable program instructions. These computer readable program instructions may be provided to a processor of a general purpose computer, special purpose computer, or other programmable data processing apparatus to produce a machine, such that the instructions, which execute via the processor of the computer or other programmable data processing apparatus, create means for implementing the functions / acts specified in the flowchart and / or block diagram block or blocks. These computer readable program instructions may also be stored in a computer readable storage medium that can direct a computer, a programmable data processing apparatus, and / or other devices to function in a particular manner, such that the computer readable storage medium having instructions stored therein comprises an article of manufactureAttorney Docket: SAND 14219WO including instructions which implement aspects of the function / act specified in the flowchart and / or block diagram block or blocks.

[0230] The computer readable program instructions may also be loaded onto a computer, other programmable data processing apparatus, or other device to cause a series of operational steps to be performed on the computer, other programmable apparatus or other device to produce a computer implemented process, such that the instructions which execute on the computer, other programmable apparatus, or other device implement the functions / acts specified in the flowchart and / or block diagram block or blocks.

[0231] The flowchart and block diagrams in the Figures illustrate the architecture, functionality, and operation of possible implementations of systems, methods, and computer program products according to various embodiments of the present invention. In this regard, each block in the flowchart or block diagrams may represent a module, segment, or portion of instructions, which comprises one or more executable instructions for implementing the specified logical function(s). In some alternative implementations, the functions noted in the block may occur out of the order noted in the figures. For example, two blocks shown in succession may, in fact, be executed substantially concurrently, or the blocks may sometimes be executed in the reverse order, depending upon the functionality involved. It will also be noted that each block of the block diagrams and / or flowchart illustration, and combinations of blocks in the block diagrams and / or flowchart illustration, can be implemented by special purpose hardware-based systems that perform the specified functions or acts or carry out combinations of special purpose hardware and computer instructions.

[0232] A processor or processor circuity may include a device that has any combination of hardware, circuity, and software. The hardware and circuitry examples may comprise a parallel processor, a processor array, a vector processor, a scalar processor, a multi-processor, a microprocessor, a communication processor, a network processor, a logic circuit, a queue management device, a central processing unit (CPU), aAttorney Docket: SAND 14219WO microprocessing unit (MPU), system on a chip (SoC), a digital signal processor (DSP), an integrated circuit (IC), an application specific integrated circuit (ASIC), a programmable logic device (PLD), and a field programmable gate array (FPGA). A processor or processor circuity may include one or more processors, one or more circuits and / or software, that responds to and processes basic computer instructions and carries out the instructions of a computer program by performing the basic arithmetic, logical, control and input / output (I / O) operations specified by the instructions, one or more of: an arithmetic logic unit (ALU), which may carry out arithmetic and logic operations on the operands in instructions; a floating point unit (FPU), also known as a math coprocessor or numeric coprocessor, which is a specialized coprocessor that may manipulate numbers more quickly than the basic microprocessor circuitry can in some cases; one or more registers, which may hold instructions and other data and supply operands to the ALU and store the results of operations; and cache memory, which may save time compared to having to get data from random access memory (RAM). A processor or processor circuity may also include one or more circuits comprising electronic components, such as resistors, memristors, power sources, magnetic devices, motors, generators, solenoids, microphones, speakers, transistors, capacitors, inductors, diodes, semiconductors, switches, antennas, transducers, sensors, detectors, vacuums, tubes, amplifiers, radio receivers, crystals, and oscillators connected by conductive wires or traces through which electric current can flow. The combination of components and wires may allow various simple and complex operations to be performed: signals may be amplified, computations can be performed, and data can be moved from one place to another.

[0233] The descriptions of the various embodiments of the present disclosure have been presented for purposes of illustration, but are not intended to be exhaustive or limited to the embodiments disclosed. Many modifications and variations will be apparent to those of ordinary skill in the art without departing from the scope and spirit of the described embodiments. The terminology used herein was chosen to explain the principles of the embodiments, the practical application or technical improvement overAttorney Docket: SAND 14219WO technologies found in the marketplace, or to enable others of ordinary skill in the art to understand the embodiments disclosed herein

[0234] While the present invention has been described at some length and with some particularity with respect to the several described embodiments, it is not intended that it should be limited to any such particulars or embodiments or any particular embodiment, but it is to be construed with references to the appended claims so as to provide the broadest possible interpretation of such claims in view of the prior art and, therefore, to effectively encompass the intended scope of the invention. Furthermore, the foregoing describes the invention in terms of embodiments foreseen by the inventor for which an enabling description was available, notwithstanding that insubstantial modifications of the invention, not presently foreseen, may nonetheless represent equivalents thereto.

Claims

Attorney Docket: SAND 14219WO What is claimed is:

1. A method for managing transactions in energy units comprising: generating or retrieving at least one scheduling token associated with a first energy generator, the scheduling token comprising at least one value variable defined based on parameters of the corresponding first energy generator; defining a multiple for minting fungible energy tokens associated with the scheduling token, the multiple based in part on the at least one value variable; generating at least one fungible energy token, wherein a number of fungible energy tokens generated is defined based on the multiple; recording an energy commitment from a first energy provider for generating capacity defined by the at least one scheduling token; receiving at least one partial fungible energy token from an energy purchaser as payment for the generating capacity defined by the at least one scheduling token; determining that energy has been transferred from the energy provider to the energy purchaser equivalent to generating capacity defined by one of the at least one scheduling token; removing the at least one scheduling token from the recorded energy commitment; and transmitting at least a portion of the at least one partial fungible energy token to the first energy provider.

2. The method of claim 1 further comprising: generating or retrieving at least one secondary scheduling token associated with a second energy generator, the secondary scheduling token comprising at least one value variable defined based on parameters of the second energy generator; determining that the at least one secondary scheduling token at least partially provides redundancy for the energy commitment defined by the at least one scheduling token;Attorney Docket: SAND 14219WO recording an energy commitment from a second energy provider for generating capacity defined by the at least one secondary scheduling token; receiving at least one partial fungible energy token as payment for a commitment for generating capacity; upon determining that energy has been transferred from the first energy generator to the energy purchaser equivalent to generating capacity defined by one of the at least one scheduling token, releasing the recorded energy commitment associated with the at least one secondary scheduling token; and transmitting the at least one partial fungible energy token to the second energy provider.

3. The method of claim 2, wherein, upon determining that energy has been requested by the energy purchaser in accordance with the energy capacity defined by one of the at least one scheduling token, and upon determining that the first energy provider has not transferred the requested energy, the method further comprises: determining that energy has been transferred from the second energy provider to the energy purchaser equivalent to the generating capacity defined by the at least one secondary scheduling token; removing the at least one secondary scheduling token from the recorded energy commitment; and transmitting at least a portion of the at least one fungible energy token to the second energy provider.

4. The method of claim 3 further comprising returning the at least one partial fungible energy token upon determining that the energy has been transferred from the second energy provider to the energy purchaser.

5. The method of claim 2, wherein the at least one partial fungible energy token received from the energy purchaser comprises a number of tokens defined by the multiple associated with the corresponding scheduling token, and wherein the at least one partial fungible energy token received is bound within a system implementing the methodAttorney Docket: SAND 14219WO pending a determination that the energy has been transferred from the energy provider to the energy purchaser, and wherein, upon determining that the energy has been transferred, a portion of the at least one fungible energy token is transmitted to an operator of the system implementing the method prior to transmitting the at least one fungible energy token to the first energy provider.

6. The method of claim 5, wherein the at least one partial fungible energy token received as payment for a commitment for generating capacity is a portion of the portion of the at least one fungible energy token transmitted to the operator of the system.

7. The method of claim 1, wherein the generating or retrieving of the at least one scheduling token comprises evaluating the first energy generator and defining a plurality of system parameters associated with the energy generator, the plurality of system parameters including a source valuation function defining a value of produced energy relative to generically produced energy, and wherein the source valuation function is contained within the corresponding scheduling token.

8. The method of claim 7, wherein the multiple for minting fungible energy tokens is based at least partially on the source valuation function associated with the scheduling token.

9. The method of claim 7, wherein the plurality of system parameters further comprise at least one of an environmental condition impact function, a degradation function, and a risk function.

10. The method of claim 9, wherein the multiple for minting fungible energy tokens is based at least partially on the source valuation function and the at least one of the environmental condition impact function, the degradation function, and the risk function associated with the corresponding scheduling token.

11. The method of claim 10, wherein the multiple for minting fungible energy tokens is further based on environmental conditions at a location associated with the first energy generator or a time associated with the corresponding scheduling token.Attorney Docket: SAND 14219WO 12. The method of claim 1, wherein the energy provider is the first energy generator and the energy purchaser is an energy transmitter or distributor.

13. The method of claim 1, wherein the energy provider is an energy transmitter or distributor and the energy purchaser is a party operating a load.

14. The method of claim 1, wherein an energy meter provided between the energy provider and the energy purchaser determines that energy has been transferred from the energy provider to the energy purchaser, such determination triggers the removal of the corresponding at least one scheduling token from the recorded energy commitment and the transmission of the at least a portion of the at least one fungible energy token to the first energy provider.

15. The method of claim 1, wherein upon determining that the energy has been transferred from the energy provider to the energy purchaser, only a portion of the at least one partial fungible energy token received from the energy purchaser is transmitted to the first energy provider, while an additional portion is extracted by an operator of a system implementing the method.

16. The method of claim 15, wherein the portion extracted by the operator of the system is at least partially destroyed to account for degradation, wherein a size of a portion to be destroyed is defined by a degradation function associated with the corresponding scheduling token.

17. The method of claim 15, wherein the portion extracted by the operator of the system is at least partially utilized by the operator to fund reservation of at least one secondary energy token to account for risk associated with a failure of the first energy provider to provide committed energy, and wherein a size of a portion to be utilized for reservation is defined by a risk function associated with the corresponding scheduling token.

18. The method of claim 1, wherein the at least one scheduling token is a plurality of scheduling tokens corresponding to energy units made available by the first energy generator, and wherein each scheduling token of the plurality is fungible, and whereinAttorney Docket: SAND 14219WO each secondary scheduling token of a plurality of secondary scheduling tokens associated with a second energy generator is fungible, but wherein the scheduling tokens are not fungible with the secondary scheduling tokens.

19. A system for tokenizing energy units comprising: a memory for storing a plurality of instructions; processing circuitry implementing a scheduling token minting module, an energy token minting module, and a ledger module for recording transactions; a management account; a plurality of user accounts; and a plurality of energy meters for recording transactions between users, wherein the processing circuitry couples with the memory and is configured to execute instructions to: generate, at the scheduling token minting module, at least one scheduling token associated with a first of the plurality of user accounts corresponding with an energy generator; define, at the management account, a multiple for minting fungible energy tokens associated with the at least one scheduling token associated with the first user account; generate, at the energy token minting module, at least one fungible energy token, wherein a number of fungible energy tokens generated is defined based on the multiple; recording, at the management account, an agreement between the energy generator and an energy purchaser, the energy purchaser associated with a second of the plurality of user accounts; recording an energy commitment from the energy generator defined by the at least one scheduling token;Attorney Docket: SAND 14219WO receiving at least one partial fungible energy token from the energy producer associated with the second user account as payment for the generating capacity defined by the at least one scheduling token; determining, at an energy meter monitoring flow of energy between the energy generator and the energy purchaser, that energy has been transferred from the energy provider to the energy producer equivalent to generating capacity defined by the at least one scheduling token; removing the at least one scheduling token from the recorded energy commitment; and transmitting at least a portion of the at least one fungible energy token to the first energy generator.

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