Original title: "Why is "green electricity + DePIN + AI" the best asset target for RWA?"

Original author: Ye Kai (WeChat/Twitter: YekaiMeta)

Recently, Bitcoin has become popular, overshadowing the heat wave of AI chips, but the green electricity behind the two is very low-key. Brother Kai believes that this low-key emerging asset may become one of the basic assets of the financial system in the next 20 years.

The topic of renewable energy (or new energy) is not a day or two, such as the global petrochemical energy transformation under the background of carbon emissions, the anchoring of the petrodollar may be disconnected, the subsidies of Europe and the United States for local new energy and the carbon tax tariffs on China's new energy equipment, these are all key topics around green electricity.

In May, the statement of the G7 member states jointly pledged to gradually phase out the existing and increasing coal-fired power generation in the energy system by 2035; this summer, abnormal weather with high temperatures and floods is everywhere. All of these topics are closely related to green electricity.

Why is it a combination of "green electricity + DePIN + AI"?

RWA as Tokenization of Real World Assets What are the underlying assets of real world assets in the future? Without a doubt, green electricity is one of them.

In discussions around hot topics about AI, both Musk and Huang Renxun mentioned that AI computing power consumes a lot of electricity, and the ultimate AI computing power may be green electricity energy. In the field of AI, there is an unwritten inequality: green electricity > electricity > computing power > basic model > application. When the world enters the era of AIGC and carbon-based silicon-based, green electricity is one of the most critical foundations. Almost all future assets and applications will be related to AI, including AI computing power and AIGC, etc.; almost all future energy and power will be related to green electricity, including renewable energy (photovoltaic, water, wind, etc.) and hydrogen energy, light storage and charging, and green electricity trading, etc.

As the underlying asset of the future real world, the tokenization of green electricity must be supported by DePIN and AI. In the combination of "green electricity + DePIN + AI", it is equivalent to AI adding a brain to green electricity, while DePIN adding a heart and blood vessels to green electricity. As a basic asset, green electricity is also the source of assets in the new real world and the crypto world. It is naturally scarce and has a head narrative; DePIN is the infrastructure and trusted device network of the green electricity asset ecosystem, realizing the distributed network, digitization, and chain capitalization of green electricity; AI is the core that fully highlights the cost reduction and efficiency improvement of green electricity, whether it is AI green electricity arbitrage or home computing power center and edge computing.

There can be many changes around the combination of "green electricity + DePIN + AI", and the key depends on the subject and scenario. For example, starting with photovoltaic energy storage, some people do distributed photovoltaic panels and green electricity certificates and carbon indicators; some people do energy storage green blockchain economy, and may only see green REC and carbon indicators supported by distributed ledgers; while some people will see BatteryGPT for battery life cycle management of energy storage, DER demand forecasting and electricity price arbitrage for reverse "power generation" of energy storage, and EnergyGPT for electricity price arbitrage, and some people will see the investment model of integrated standard nodes for photovoltaic storage and charging, as well as VPP virtual grids and P2P green electricity transactions that can be separated by walls. Well, Kai Ge chose Energy "SaaS+AI" centered on energy storage.

DePIN Soft Heart of Green Power

(1) Distributed Green Energy Smart Storage Network

The biggest problem with green power is its distributed nature. Except for some large single projects, most of them are small in scale, mainly for self-use and partial consumption, and may not meet the conditions for network access, etc. However, with the energy management function of EMS energy storage, combined with DePIN technology and AI technology, it can be achieved: "Green Power + EMS + DePIN + AI == Green Power Storage as a Service", that is, Green Power SaaS Storage as a Service.

In the photovoltaic storage and charging system of Green Power, the single-point digitization of the hardware equipment such as photovoltaic panel modules, energy storage modules and charging pile modules is already very high. For example, the energy storage module can realize the BMS of the battery, the EMS of the electric energy, the PCS of the converter charging and discharging, and even the control of the photovoltaic panel inverter of the photovoltaic module and the uplink and downlink control of the distribution network, which is equivalent to the energy digitization and energy management of the single-point module being 100% realized.

The biggest feature of the soft heart is that on the basis of the digitization of single-point hardware equipment, distributed networking is realized based on DePIN technology. The Internet of Things capabilities of DePIN and the AI computing capabilities of the supporting chips, combined with Green Power's AI Bot or AI Agent, make Green Power truly become the infrastructure of distributed networks.

The further development of the soft core is VPP and P2P. Based on the distributed network infrastructure, VPP can virtually model the DePIN smart box and IoT devices (batteries, inverters or chargers, etc.) that link green electricity to achieve edge device prediction and control, obtain green electricity telemetry data from millions of IoT devices, and control charging and discharging and other actions, thus realizing a distributed green energy storage service and green electricity cloud.

(2) Green power’s “EVM” ecological closed loop

From the perspective of integrated management of energy sources, grids, loads and storage, the green power ecological closed loop will not be a single point module, such as photovoltaic or charging pile modules, but from the generation of green power to storage and then to charging power consumption. In the green power SaaS storage service, there is a green power in and out, with a unique time and consumption hash value, so that there is a true complete green power digital asset cycle.

For computing power assets, there is a concept of GPU hours as the unit of the computing power asset pool; and green power assets can have something like GWh green watt hours as the unit of the green power energy asset pool. On the basis of distributed green power infrastructure, it will involve the second layer (similar to Layer2) virtual energy asset pool. This involves the entry of green power assets into the pool, dynamic asset pricing and liquidity. First of all, the important thing is the algorithm for entering the pool of green power assets, the confirmation of ownership, positioning (distributed unique location address and confirmation of ownership) of green power assets and the conditions for coordinating the entry into the pool (pledge entry into the pool or conditional entry into the pool, or random time entry into the pool, etc.).

From this perspective, photovoltaic modules and charging pile modules are far inferior to energy storage modules, which are indispensable intermediate links in the closed loop of green power ecology. Therefore, in the design of the ecological framework, Kaige designed the second layer of green power into an "EVM" of green power assets. The smart contracts, algorithm protocols, basic component services, etc. after the assets enter the pool will become an open second-layer platform for aggregating distributed green power assets/resources. For example, the PPA smart contract of green power transactions, on this second-layer platform, the PPA power purchase agreement can be similar to the Ricardo contract model to realize the smart contract based on the liquid asset pool.

（3）Green power trading network

With a green power asset pool, combined with VPP (the network foundation for trading and exchange), P2P green power trading can be realized. The key to green power trading is full marketization, so there is a multi-level market structure (capital side and asset side and diversified trading methods), diversified market participants (green power buyers and sellers, liquidity LP, arbitrage speculators, standardized investors, etc.), and multi-angle liquidity pools and liquidity.

Green power trading requires full support from AI technology. Whether it is the green power dynamic pricing algorithm, the prediction of electricity price arbitrage, the optimal path for green power resource trading configuration, and the price curve optimization of the green power trading algorithm, etc., all require the deep support of EnergyGPT and time series AI models.

In the liquidity pool of green electricity trading, green electricity comes from different market participants or different sources of generation, and the needs and timeliness of holders or buyers and sellers are different. There may be both 2B standardized photovoltaic storage and charging nodes or large-scale photovoltaic storage and charging modules, and there may also be a large number of distributed household photovoltaic storage and charging modules. It also involves peak and trough grid electricity, which leads to the price of green electricity is not static or relatively fixed, but there is a dynamic, decentralized green electricity pricing algorithm. This pricing algorithm that builds consensus and trust in the market means the pricing power of green electricity. What does the pricing power of green electricity mean? Those who are engaged in finance understand it.

In green electricity trading, the trading methods and market participants are different, and the coordination conditions for asset entry into the pool are also different. Therefore, the transaction is also very complicated. Although there will be CEX with order books, decentralized DEX and OTC transactions, because of the asset entry algorithm and asset pricing algorithm, the core of green electricity trading is SWAP, which is the automatic optimal configuration of decentralized resources. This means the optimal configuration of the core green electricity transaction: decentralized green electricity AMM trading algorithm. Because green electricity energy assets have dissipative characteristics, it may be necessary to modify and optimize based on a fixed product algorithm similar to Uniswap.

Green electricity's AI smart heart

(1) EnergyGPT and home AI computing center

The collision between AI and green electricity is very sparky, and it is a high-voltage spark. We have cooperated with energy laboratories in American universities on EnergyGPT. There are a large number of green electricity large model application scenarios around green electricity price arbitrage, peak shaving and valley filling, equipment attenuation cycle, energy storage battery thermal runaway, DER demand forecasting, power load forecasting, active charging and discharging strategies, etc. This EnergyGPT is different from the traditional LLM large model, nor is it a traditional time series prediction large model. It is a hybrid MoE expert model.

Due to the DePIN smart box on which the green power distributed network is based, some GPU computing power can be configured to perform local electricity price demand forecasts and calculations of the optimal arbitrage charging and discharging strategy, as well as local rendering calculations for home film and television entertainment games. At the same time, it can also cooperate with regional centers to perform some edge computing tasks.

Standardized photovoltaic storage and charging nodes can be configured as regional AI computing centers. A certain scale of AI chip computing power is configured on the basis of energy storage cabinets to perform regional demand forecasts, electricity price arbitrage, peak shaving and valley filling, charging and discharging strategy calculations, and regional AI computing tasks, and can also serve as regional nodes for edge computing.

（2）AI Agent and AI Bot

The EnergyGPT and AI computing that are supported by green electricity are basically presented in the form of AI Agent or AI Bot on the user side. The needs of each 2B small and medium-sized enterprise or standardized node and 2C household are different, and the green electricity AI mode needs to be intelligently configured, and it can even be opened up to more application scenarios.

Distributed AI nodes are based on VPP and regional standardized photovoltaic storage and charging nodes, and the nodes are expanded into regional AI computing nodes, becoming distributed AI computing nodes and edge computing nodes.

Due to space limitations, I will not expand on this part of AI. I will have the opportunity to discuss it in detail at the seminar.

New Financial System for Green Electricity

(1) Standard Investment Model

There is a standardized product in the green electricity ecosystem, namely the green electricity photovoltaic storage and charging integrated charging station, which is generally about 300KWh of photovoltaic power and about 200KWh of energy storage, plus supporting charging piles and parking spaces. Some AI chips are configured in the energy storage module to increase AI computing power, creating a typical green electricity photovoltaic storage and charging AI standard node. This standard node can accurately evaluate and calculate the overall input, actual output and investment return cycle, which is equivalent to a standard investment model. Its main revenue comes from green electricity charging consumption, dynamic balance subsidies for the power grid, peak shaving and valley filling and electricity price arbitrage income, as well as regional AI computing power cloud rendering, cloud computing power and edge computing task income. A node of a standard investment model can be designed as a fixed income RWA product.

Compared to the standardized photovoltaic storage and charging AI node, the green electricity family investment model is a non-standard product, because the size and electricity consumption patterns of European and American families vary greatly. Some families are farm models equivalent to small-scale industrial and commercial storage, and some families are simple home-use models. Therefore, it is difficult to form a standard green electricity family investment model. However, the green electricity family investment model will have more charging and electricity application scenarios, which will be very interesting: "rooftop photovoltaic + household storage + new energy vehicles + home AI computing center + robots/VR/games, etc."

(2) Green Electricity RWA Product Agreement

In addition to the standard investment model node mentioned above, the design of the green electricity RWA product mainly depends on the operating cash flow of the photovoltaic storage and charging module in the green electricity ecosystem. If we look at it from this perspective, the most obvious one is the charging pile business. Charging pile operators can directly charge charging fees (2C), including electricity fees and service fees, which is equivalent to green electricity consumption. However, from the perspective of scale and stability, the future will be energy storage operators. However, most of the current energy storage is OEM, not independent operators. Branded energy storage operators will charge monthly service fees from owners (2B institutions or 2C home storage). This is a relatively stable operating cash flow and is easier to scale up.

At present, photovoltaic panel modules often serve as spare parts, and most of the photovoltaic green electricity is consumed by itself, with very little surplus sold, which basically cannot be counted as operating cash flow.

In the process of green electricity RWA, DePIN is one of the infrastructures for the tokenization of green electricity RWA, consolidating the transparency of green electricity assets and value; at the same time, because the entry and transaction exchange of green electricity assets will go through the DePIN smart box, DePIN is loaded with RWA token cash flow. In this way, RWA becomes the feedback loop of the green electricity DePIN flywheel and becomes the endogenous value promoter of the green electricity distributed network.

The cash flow of green electricity RWA tokens is often the income of producers and consumers, such as green electricity price arbitrage, demand response, green electricity transaction fees, management fees of green electricity liquidity pools, wholesale and retail price differences between carbon credits and green electricity certificates, etc.

（3）Green power RWA product innovation

The RWA product innovation of the green power ecosystem must be based on the core algorithm protocol. That is, the three core algorithms: decentralized green power asset pooling algorithm protocol, decentralized green power asset pricing algorithm protocol, and decentralized green power transaction algorithm protocol.

With this foundation, we can design green power-related RWA products, such as green bonds, fixed income products; green ABS, diversified income products or cash distribution products; these are relatively basic RWA products, which can be understood as "U.S. bonds" and high-quality "corporate bonds" similar to green power.

Based on these green electricity US bonds and other assets, we can further innovate and design green electricity-related RWA products, such as lending products based on green electricity "US bonds" assets, futures options products, insurance products for electricity prices or computing power, and further green electricity computing power stablecoins and green electricity ETF index products.

There is also another attempt. In addition to Bitcoin mines combining green electricity with grid electricity, the green electricity mined out with green Bitcoin; there is also the regional light storage AI node. Can it be configured with a Bitcoin mining machine? Can Bitcoin mining be carried out with the remaining electricity with suitable cost in addition to peak shaving and valley filling? This model is a "green electricity + Bitcoin computing power" RWA product.

Around the new ecology of green electricity, in fact, there are already many projects in Europe and the United States, such as: MicroGrid, P2P electric trading and Renewable Power Coin, which are exploring the tokenization and P2P trading of green electricity. Even in Hong Kong, where every inch of land is valuable, there is already a microgrid with 600,000 photovoltaic units connected. And 80% of the largest manufacturing capacity of the global photovoltaic storage and charging industry is in China. Therefore, green electricity is China's core opportunity, but AI computing power is banned by the United States, the domestic energy market is not fully marketized, and the superstructure of the photovoltaic storage and charging industry is not in China. We only have the hardware capacity of green electricity, but not the soft heart and soft brain of green electricity, as well as the pricing and trading rights.

New Green Power Financial Ecosystem

In summary, green power is not only the best asset target for RWA, it is actually a new ecosystem. Green power combined with DePIN, AI and RWA forms a huge virtual green energy pool, transaction exchange and new financial system.

At present, opportunities are still there, because China still has an advantage in hardware production capacity, and at the same time, the green power photovoltaic storage and charging industry does not have a suitable valuation system in the traditional financial system. Under the premise of Sino-US decoupling and European and American containment, it is difficult to reasonably value green power photovoltaic storage and charging based on traditional cost methods or income methods; however, in the RWA system, green power combined with DePIN, AI and RWA tracks’ hot spots and concepts, the real-world photovoltaic storage and charging equipment nodes, installed capacity, etc., can be transformed into a high premium advantage for the leader in the digital asset track.

However, what is more urgent is that Europe and the United States are at the forefront of soft infrastructure and basic research around green power trading, such as SaaS cloud energy management, EnergyGPT, energy blockchain, green power certificates and carbon credits, P2P exchanges, and related green power asset protocols, PPA smart contracts, decentralized pricing algorithms, P2P trading algorithms, and green power financial derivatives Defi protocols. Bitcoin computing power and AI computing power are also advantageous in Europe and the United States. Even the foundation of the RWA system, around public chains, Layer2, green power stablecoins, etc., is also advantageous in Europe and the United States.

We must realize that this new green power ecosystem will be a new valuation system, a new incentive system, a new trading system, a new monetary system, and a new financial system.

In the real world, green power is the core energy of the future, and Bitcoin, the core asset of the crypto world, is bound to be linked to the narrative of green power computing power. If the United States and even the world use Bitcoin or green Bitcoin as a reserve asset, then official institutions, financial institutions and large funds will all speculate on Bitcoin, green electricity and AI.

Kai Ge has been engaged in real estate finance for many years. Looking at the past 20 years, the underlying financial support is almost "land + real estate", and looking forward to the next 20 years, the underlying financial support will definitely be "green electricity + computing power (Bitcoin computing power + AI computing power)".

The future decisive battle between China and the United States will be in green electricity and computing power. The decisive battle of green electricity is not hardware production capacity, but the soft heart computing power of green electricity, system large model capabilities, pricing capabilities and derivative capabilities. Therefore, our green electricity must move from hard to soft, and we can no longer continue to manufacture and manufacture again!

Finally, we are jointly setting up an Asian RWA professional investment bank to provide diversified RWA investment banking services for high-quality assets and entrepreneurs. Interested institutions and potential partners are welcome to participate in the construction; you are also welcome to add WeChat YekaiMeta to join the RWA practice seminar group to participate in the discussion.

This article is from a contribution and does not represent the views of BlockBeats.

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