Executive Summary

This report explores the Power Ledger business model using the nine component Business Model Canvas
approach to identify the features that had such an immediate impact on power sector. The analysis relies on
publically available information. Power Ledger holds a good share in the market. After reviewing the
information available , the following recommendations have been made.

 Blockchain Agnostic: Although they’re building their platform on top of Ethereum’s Blockchain,
their governance framework affords adaptability with other Blockchains that they may leverage on
in the future
 Dynamic Agility: The platform must be made interoperable between a diverse range of markets,
allowing scalability of application within any existing or future regulatory environment
 Extensive Partner List: Onboarding of numerous stakeholders serve to expand the synergies of
the market, creating a network effect which will be beneficial to the ecosystem
 Zero-Carbon Footprint: The proposed efficiency and cost-savings from Power Ledger’s model
may precipitate greater adoption of solar power as a renewable energy source.

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Contents
Executive Summary ...................................................................................................................................... 1
I. Introduction ........................................................................................................................................... 3
II. Business model ..................................................................................................................................... 3
A. Building blocks ................................................................................................................................. 3
1. Customer segments ....................................................................................................................... 3
2. Key partners .................................................................................................................................. 3
3. Value proposition .......................................................................................................................... 3
4. Key activities ................................................................................................................................ 4
5. Channels........................................................................................................................................ 4
6. Revenue streams ........................................................................................................................... 4
7. Cost structure ................................................................................................................................ 4
8. Key resources ................................................................................................................................ 5
9. Customer relationships.................................................................................................................. 5
B. Interrelationships............................................................................................................................... 5
C. Critical success factors ...................................................................................................................... 5
D. Downside risks .................................................................................................................................. 6
E. Business model changes.................................................................................................................... 6
III. Conclusion ........................................................................................................................................ 6
IV. Recommendations ............................................................................................................................. 6
Bibliography ................................................................................................................................................. 8
Appendix ....................................................................................................................................................... 9
Appendix 1 ................................................................................................................................................ 9

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 I. Introduction

Power Ledger (POWR), based in Australia, encourages to imagine a world in which electricity is reliable,
affordable and clean for all. With the support of the Ethereum network contracts, the peer-to-peer energy
exchange platform, its most mature platform, aims to democratize energy trading with transparent systems
that enable individuals and communities to choose the source of energy. power. In its dual-token model,
POWR is the utility token that users would deposit to use the platform, while Sparkz represents the local
electricity credits for market participants. Both are used to create a part of an economy in which households
generating electricity can trade with their neighbours for a fair return. Power Ledger was founded in May
2016 and it was the first energy trading blockchain network.

II. Business model

A. Building blocks

Osterwalder & Pigneur’s (2010) nine building blocks approach details CT’s business model (see Error!
Reference source not found.).
1. Customer segments

The Power Ledger has a diversified customers base. The customer segments of Power Ledger include,
energy consumers, electricity generators and prosumers.

2. Key partners

The key partners of Power Ledger are those which are related to production of energy. The following are
the key partners of Power Ledger

 Energy Producers

 Regulatory Agencies

 Solar Panel Companies

 Meter Supplies

 Independent generators
3. Value proposition

Manage the energy economy into the hands of consumers

Their technology enables the sale of surplus renewable energy generated at residential and commercial
developments (including multi-unit/multi tenanted) and at homes and businesses connected to existing
electricity distribution networks or within micro-grids.
Blockchain technology couples a tracked energy transaction with the financial one making the process of
realizing the value of renewable energy investments simple and secure.

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 4. Key activities

The are a number of activities in which the Power ledger is associated as it is dealing in power sector related
products. The following are its key activities:

 Research and Development

 Prototyping

 Engineering

 Software Development

 Integration

 Hardware Design

 Maintainence

 Clearing

 Blockchain Transaction
5. Channels

Power Ledger uses a number of channels to engage with its customer. Some of the channels are listed below

 Internet

 Website

 Telephone

 Startup Forums

 Media Release

 Press
6. Revenue streams

Power Ledgers has performed well in a short period of time and gain a good position in the market. The
revenue stream of Power ledger consists of two major sources

 Commission

 Sale of Technology
7. Cost structure

The Cost structure of Power ledger comprises of a number of factors. Some of them are as follow

 R&D

 Employees

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  Machinery

 Development

 Maintainence

 Softwares

 Infrastructure
8. Key resources

Power Ledger consists of the following key resources:

 Power + Blockchain Technology

 Local electricity distribution network

 Every industry professionals

 Sustainability leaders

 Disputors

 Technichal expertise

 Commercial acumen
9. Customer relationships

Power Leger allows for unit of electricity to be tracked from the point of generation to the point of
consumption within the building it is generated or when sold to the customers.
Power Ledger allows renewable energy assets owner to decide who they want their surplus energy to and
at what price.
B. Interrelationships

Using its world-leading blockchain technology, its goal is to provide low-cost, low-carbon renewable energy
that is accessible to all. In their early days, their intention was to allow people to participate in the
proliferation of renewable energy assets by allowing them to purchase POWR chips. POWR's holdings
provide a real value opportunity for companies and continued development as an incentive to adopt our
products. They also charge a small fee per kilowatt hour (kWh) exchanged, which becomes the income of
the general ledger. Remember that the goal of the platform is to offer the business a global reach and to be
accessible to as many people as possible (Kruijff & Weigand, 2017), resulting in a large number of users.
This means that fees can be low and give the company a solid income; allow application hosts to retain most
of the value and give consumers access to low-cost electricity.
C. Critical success factors

“What we’re doing isn’t just leading the way in the energy space, it’s leading the way in a new sector of
the investment community and the economy more generally, and with that, whether we like it or not, comes

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a level of scrutiny that we can either hide from or we can work with.- Power Ledger Co-Founder and
Managing Director David Martin.

POWR tokens allow an application host, such as a utility company, and its customers to access our P2P
business functions and other general ledger applications. POWR tokens are the global token that opens access
to the platform for all participants to use the system. Think of it as an access token, such as a software license,
that allows application hosts to perform transactions on the platform, through the exchange of POWR tokens
by Sparkz. Prosumers and consumers use Sparkz to exchange energy in kilowatt hours (kWh) with each
other. It is this electricity transaction where Power Ledger charges a small fee, without preventing value
creation, whether for application hosts, potential users or consumers (Gandal & Halaburda, 2014). This
means that our customers can quantify the value of our product in different ways. If we are talking about
retailers, the value is quantified by customer retention (people are less likely to leave the network if they
have access to cheaper energy), as well as by a reduction in working capital and bad debts which is
particularly useful for the retailer in a prepaid income model (Annison, 2016).
D. Downside risks

In the three years between 2016 and 2019 since its inception, the Power Ledger experienced a healthy
growth but in the past few months the data showed a negative trend.
There is a lot of speculations in the cryptocurrency market and the news related to this have adverse effect
on the company perfomance and leads to decrease in the market share of the company.
E. Business model changes

There are a lot of new business oppertunites in the market due to technology. The crypto currency and block
chain model has changed the whole business World (Moore, 2013).
Power Ledger, which achieved a $ 34 million investment budget in October last year, has long advocated
for greater transparency and prudence in the operation of a company operating in the crypto business.
Notoriously unregulated money. The ATO is currently dealing with digital currency, such as Bitcoin or
Ethereum, which is the main currency used in most UCIs as local or foreign currency. Instead, they are
treated as a property and as an asset for the purposes of capital gains taxation.The $ 17 million Power
Ledger public sale (with the remaining $ 17 million in a pre-sale) consisted of 27,820 Ether, 1,050 Bitcoin
and 6,120 Litecoin. Martin says the company still holds about half of its ICO income as cryptocurrency,
the rest being withdrawn to help manage cash flow (Montenegro & Castelluccia, 2004).

III. Conclusion

The preceding analysis is based on public information. Power Ledger has been wonderfully successful in
the application of their marketing practices to make their product . The future is not without risk. Possibly
the greatest risk is that without next level understandings, Power Ledger may be open to disturbance itself.

IV. Recommendations

 Blockchain Agnostic: Although they’re building their platform on top of Ethereum’s Blockchain,
their governance framework affords adaptability with other Blockchains that they may leverage on
in the future

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 Dynamic Agility: The platform must be made interoperable between a diverse range of markets,
allowing scalability of application within any existing or future regulatory environment
 Extensive Partner List: Onboarding of numerous stakeholders serve to expand the synergies of
the market, creating a network effect which will be beneficial to the ecosystem
 Zero-Carbon Footprint: The proposed efficiency and cost-savings from Power Ledger’s model
may precipitate greater adoption of solar power as a renewable energy source

7
Bibliography
Annison, T. (2016). Blockchain: The Basic Things You Need To Know. The Market Mogul. Retrieved 4 5,
2019, from https://themarketmogul.com/blockchain-the-basic-things-you-need-to-know
Christensen, C., Hall, T., Dillon, K., & Duncan, D. (2016). Know your customers' "jobs to be done" .
Harvard Business Review, 54-62.
Gandal, N., & Halaburda, H. (2014). Competition in the Cryptocurrency Market. Retrieved 4 5, 2019, from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2501640
Kaufmann, P., Smith, N., & Ortmeyer, G. (1994). Deception in retailer high-low pricing: a 'rule of reason'
approach. Journal of Retailing, 70(2), 115-138.
Kruijff, J. d., & Weigand, H. (2017). Understanding the Blockchain Using Enterprise Ontology. Retrieved
4 5, 2019, from https://link.springer.com/chapter/10.1007/978-3-319-59536-8_3
Montenegro, G., & Castelluccia, C. (2004). Crypto-based identifiers (CBIDs): Concepts and applications.
ACM Transactions on Information and System Security, 7(1), 97-127. Retrieved 4 5, 2019, from
https://dl.acm.org/citation.cfm?doid=984334.984338
Moore, T. (2013). The promise and perils of digital currencies. International Journal of Critical
Infrastructure Protection, 6, 147-149. Retrieved 4 5, 2019, from http://bitcoinmenow.com/wp-
content/uploads/2013/12/the-promise-and-perils-of-digital-currencies-.pdf
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey: John Wiley &
Sons Inc.

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Appendix
Appendix 1
Key Partners Key Activities Value Proposition Customer Relationships Customer
Segments
 The Key partners  Providing Quality tea to the Our company will provide much attention to  Our company will try to
of Emerald Tea customers of the company. make customer Customers of
satisfy customers by providing them much
includes: relationship as strong Emerald tea
 Direct more than their perceived value they get as possible. To meet are
Distributors
from their tea. The value customers get from
their needs is the main •Middle
 Sub priority of the company. class
Distributors Key Resources EMERALD TEA is Channels people
 Customers
  Lower prices from than competitors  Company
 Food The company will use •Lower
Services the different resources  Better quality by providing them the  Outsource Distributor class
Department to penetrate in the  Whole seller people
pure black tea have big particles  Retailer
market. The company
will import the raw  Active the customers while they  Super Stores
 Key Accounts
material from different perform their daily task  Online stores
countries and convert it
 Makes them healthy by improving
using machinery into
tea. the flow of blood keeping the blood
level normal
Cost Structure Revenue Streams

 Basically, the cost is divided in to two parts.  This business contains a mixed revenue stream. The revenue of the business is from
 The cost of purchasing the raw material the middle class of the society.
 The cost of converting the raw material
into finished goods i.e. tea leaves into
tea