pWHITEPAPERAPRIL 2017An energy trading plat that utilises blockchain technology to create a new disruptive model for buying and selling electricityDecentralized Energy MarketCONTENTSAbstract nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4Introduction nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Great opportunity nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9The vision nbsp; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11How does it work nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Suncontract coins SNC . nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. nbsp;. 16How token sale funds will be used nbsp; . . . . . . . . . . . . .18Roadmap nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Conclusion nbsp;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22References nbsp; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .233SOMETHING TO THINK ABOUTThe Earth is 4.6 billion years old. Let’s scale that down to 46 years. We’ve been here for 4 hours. Our industrial revolution began 1 minute ago. In that time we’ve destroyed more than 50 of the world’s rain forests. GreenpeaceThis isn’t sustainable. Let us make a difference.We believe sustainability isn’t just a trend. It should not be a job left to the next generation. We see it as our mission. Now and in the future.4ABSTRACTSunContract disrupts the energy sector with a new business model, supported by the blockchain technology . Blockchain takes over the role of the middle man as a technology infrastructure, which can be trusted by default since any and all transactions on the blockchain are peer-to-peer reviewable . SunContract is a plat that directly connects electricity producers and consumers into an electricity pool based on smart contracts, which is a new, exciting and positive approach toward peer to peer electricity trading .SunContract’s vision is to support a global self-sufficient energy commu-nity based on renewable energy and peer-to-peer energy trading based on the blockchain and smart contracts . nbsp;By creating such an ecosystem, SunContract would like to contribute to greater independence when it comes to energy .5INTRODUCTIONSunContract is a project that connects three areas with enormous poten-tial electricity, blockchain and people . Growth and development in each of these fields is important for the quality of our lives . But joined together into a new, disruptive model of energy trading, they have the power to make our planet a better place to live in . Supporting SunContract means supporting sustainability because it brings together energy producers and consumers with common interests to save money and to create a decentralized, smart and clean future .Electricity is one of the cornerstones for a modern society to function . Households, hospitals, air traffic systems, road infrastructures, commu-nication and financial service industries are all dependent on electricity . The renewable energy market is developing fast, due to increasing energy demands and greater awareness of climate changes . This consequently opens new and interesting nbsp;opportunities . Research by Bloomberg New Energy Finance 1shows that by 2040 more than 60 of total investment into the energy sector will go into renewables, which means that the total global investment will be 11 .4 trillion of which 7 .8 trillion will go into renewable energies and only 3 .2 trillion into fossil fuel energy . This is a significant increase of investments into the renewable energy sector, especially into wind and solar power energy; the latter two, nbsp;according to Bloomberg, amount to more than 65 of total investment into renewables .In its current state, the energy market is facing challenges in the of centralized conventional power stations that often require high costs of energy transmission over long distances . The existing electricity model with its infrastructure will not be able to cope with the increasing elec-tricity demand that is expected to more than double by 2050 . A change of the model is necessary with a shift to decentralized energy production supported by renewable energy . There has already been some movement 6towards renewable and sustainable distributed energy systems in re-cent years . Let’s look at an example from the USA and the research done by Rocky Mountain Institute . Projections in figure 1 show that in 2015 roughly 15 of the total power generated in the USA was from wind and solar power . By 2050, it is expected to be around 71 and if you add other renewable energy sources like hydro, geothermal power and biomass it could go as high as 80 .Renewable energy obtained mostly from hydro, wind and solar power will definitely help pave the way to a cleaner, more sustainable energy future .Figure 2 shows the price and efficiency of solar panels . It is clear that over the past few years the cost of solar energy systems has dropped significantly, giving easier access to affordable, clean energy . With re-newable resources, energy production became more decentralized, local and moved closer to consumption points . A distributed energy system generates power on-site, at the point of consumption and therefore sig-nificantly decreases the cost, complexity, interdependencies and inef-ficiencies associated with transmission and distribution . Figure 1 U .S . installed wind and solar power capacities and projections, 1990-2050 2Projected Transrealutility-scale PVrooftop PVconcentrating solar poweronshore wind utility-scaleonshore wind distributedoffshore wind1990 2000 2010 2020 2030 2040 205005001000150020002500GW7Blockchain technology offers great potential too . It fits perfectly into the renewable energy sector because it enables direct peer-to-peer services closer to consumers and producers and offers transparency and local energy self-sustainability . We offer you the opportunity to be a part of SunContract . With this project we could build the largest electrical power pool that will enable energy self-sufficient entities and financial benefits by combining the best features of two seemingly very different, areas . Using the advantages of blockchain technology to disrupt services in the energy sector is an innovative and thrilling prospect .SUNCONTRACT IS DEDICATED TO nbsp; Create a digitally-tradable crypto-token for energy trading; nbsp; Enable personal contribution for improving the global situation; nbsp; Support self-consumption and self-sufficiency; nbsp; Take the full potential of local renewable resources; nbsp; Take advantage of blockchain technologies; nbsp; Enable transparent transactions between producers and consumers through the Pool, based on smart-contracts; nbsp; Lowering costs by reducing or outright eliminating the role of the middleman; nbsp; Strengthen the cryptocurrency network; nbsp; Connect people worldwide, borderless; nbsp; Take an important step towards reducing global warming .2012 2014 2014Average Efficiency - Best Line23.523.022.522.021.521.020.520.0Panel cost, / watt10Panel efficiency increase35Panel cost/watt decreaseFigure 2 Panel efficiency nbsp;and price 38SunContract project aims to create a sun-driven economy . Our team has remarkable ideas on how to integrate blockchain technology into the energy sector, improve services and increase economic, environmental and social benefits . The funds we gather will allow us to develop and implement a variety of innovations that we are planning for this sector in the near future . This is a truly big opportunity in the energy market with the potential to reward all participants; the consumer with lower costs and cleaner energy, producers with better compensation for the electricity they produce and SunContract by the growth of the network .9OPPORTUNITYOur team has been active both on energy and IT markets for years . We are well aware of opportunities and have the knowledge and innovative ideas for new perspective services that can be implemented with block-chain technology . With economic growth and development the need for electricity also in-creases . An estimation presented during the Event Horizon 2017 in Vienna Energy Blockchain Conference predicted that in 30 years the existing levels of energy will only suffice to maintain the existing infrastructure, given the population growth and the fact that more and more products use electricity as their primary source . And when energy storage and the automobile industry reach the break-through point, electricity consump-tion is expected to double . Figure 3 shows the increasing demand for electric vehicles, which will be a significant factor in increased demand .There is no question about demand it is huge . Over and above that, there is the gap between retail price and bulk price of electricity to consider as well . On average, only one third of the retail electricity price is on the energy itself, the rest are different charges that increase your bill, such as; distribution charge, customer charge, state tax adjustment charge, 20123000 TWh2000 TWh1000 TWhFigure 3 Power demand for electric vehicles; projection till 2040 410consumer education charge and some others . Introducing blockchain into the energy market means reducing costs by diminishing the effect and cost of the middleman . It also means optimizing consumption and production of electricity and thus transferring the added-value directly to consumers and producers . The goal of SunContract is to replace the existing middleman role with blockchain technology in order to connect independent power producers supply and power consumers demand through the SunContract Pool via smart contracts . Smart contracts are blockchain-based programs that aim to provide trust and security superior to traditional contract law and to reduce other transaction costs associated with contracting while also saving a lot of time, since they are cuted as soon as agreed by all participants . When connecting the energy sector and cryptographic infrastructure, a lot of room is opened up for business process optimi-sation, as well as more transparent and efficient functioning within the energy sector . With this new approach, the retail price of electricity can be diminished and that gives us an opportunity to reach a sizeable market share .11THE VISIONOur primary objective and long term goal is energy peer to peer trading P2P . But in order to achieve that level in energetics, a few other implica-tions need to be addressed, starting with the SunContract Energy Pool . How the energy sector and blockchain technology fit together perfectly can be seen through the following analysisCOMBINING 5 T’S AND 5 D’SThe five T’s represent the fundamental features of blockchain that are crucial for implementation on the energy marketTRUSTWith blockchain technology there is no need for a trusted 3rd party to oversee energy transactions or any other services . Rules are autonomous-ly proposed and communicated . The use of smart contracts enables all included parties to trust the technology and not rely on each other . This removes uncertainty and improves the service .TRANSPARENCYAll transactions are public and once on the blockchain cannot be altered in any way . This ensures a healthy business environment for all partici-pants, for energy producers and consumers alike .TRUSTTRANSPARENCYTRACEABILITYTIME STAMPTRANSACTIONDIGITALIZATIONDECARBONIZATIONDEREGULATIONDECENTRALIZATIONDEMOCRATIZATION12TRACEABILITYEvery transaction written on the blockchain can be traced back to the address from which it was cuted . The identity of the users is never in jeopardy as it is only possible to trace the address and not the person behind it . TIME STAMPBlockchain also puts a time stamp on every transaction which means that you can at any time check the exact moment of transaction cution .TRANSACTIONTransactions made through blockchain are trustworthy, transparent, traceable and time stamped, which makes them better, cheaper and generally more efficient than existing ones .The five D’s represent the features of renewable solar energy that can be achieved with the blockchain technologyDIGITIZATIONWith digitalization of electricity trading on the blockchain it becomes more flexible, transparent and traceable .DECARBONIZATIONThe rate of decarbonization needs to be accelerated in order to achieve the greenhouse gas GHG emissions target set by the U .S . and Europe at 80 by 20505and in order to achieve this goal we need to increase the utilization of renewables .DEREGULATIONThe energy industry does not yet provide a level playing field . Conventional energy is subsidized in many markets and consumer segments . A con-ducive policy framework is a prerequisite for clean energy . Government energy policies should foster innovation as well as investment in utili-ty-scale technologies to phase out carbon-intensive production facilities . The potential of solar and other renewables can only be realized with regu-latory support in the direction of renewable energy and self-sustainability . DECENTRALIZATIONDecentralization is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority . In energy sector this definition fits perfectly and gives back power to the people-literally and figuratively, by enabling each and everybody to make 13a change for and by themselves . DEMOCRATIZATIONDemocratization of energy supply facilitates access to power as well as flexibility to choose the source of power . Distributed generation of elec-trical energy is an efficient mechanism to democratize supply across markets .SunContract’s disruptive model joins together the best features of block-chain technology 5 T’s and renewable energy 5 D’s to create an entirely new service that will revolutionize the existing market If we are to reach a P2P level of energy trading, we need to establish the plat that rep-resents the basis . This is why our focus is directed at the SunContract Energy Pool, which is the first and most important step towards our long term goal . Here we present independent solar power producers an opportunity to join SunContract Energy Pool and provide clean energy to power consumers that are connected to the Pool .14HOW DOES IT WORKWe will start by developing new services which will optimise energy trad-ing .Firstly, we will establish the SunContract Energy pool . The idea is to join together electrical power producers and consumers and enable them to trade electricity through the Pool . After successful registration everybody can join the Pool . But in order to actually trade electricity one would need to obtain SunContract tokens SNC . SNC’s will be issued at the SunCon-tract/p