This interview is part of our new Blockchain In Energy series, where we interview the world's leading thought leaders on the front lines of the intersections between blockchain and energy.
In this interview we speak with Soner Hacihaliloglu, Founder of BEAD, to understand how his company is using blockchain to transform the energy business, and what the future of the industry holds.
1. What’s the story behind BEAD? Why and how did you begin?
SH: We are aware of autonomous factories which robots control but at buildings where we spend 90 percent of our lives we still depend on humans to control the AC or HVAC set points and schedules. The result is over-cooled, overheated, and unnecessarily lighted buildings. The next generation is expected to be an indoor generation. That was the reason why we started to develop BEAD: in order to create Digital Autonomous Buildings which will make it more comfortable for the next generation.
2. Please describe your use case and how BEAD uses blockchain:
SH: BEAD creates digital models of buildings by using real-time data and AI in order to understand how people are using the buildings and how their behavior changes during the day. We use the data and compare it with the energy profile of the building because human behavior contributes to energy waste of up to 25 percent. The data is audited in the BEADchain with smart contracts and is compared with the energy consumption in real-time so that the profile is linked to contracts which will serve as proof, eliminating the need for a human audit. The contracts will prove the savings so that the building owner will be able to get new funding for the next efficiency project.
3. Could you share a specific customer/user that benefits from what you offer? What has your service done for them?
SH: We had a customer that was a fitness chain. They had two problems.
One: they wanted a digital audit of their different locations in order to prove that the HVAC system is used properly for energy efficiency
Two: they wanted to use the BEADchain to reduce the insurance risk and get a discount from the insurance company.
We have created a digital model with BEAD sensors and linked the data to BEADchain so the smart contracts can prove that the kWh which are consumed after BEAD is less than before BEAD. Customers can use the profiling with BEADchain in order to have a new line of credit with the bank for further investments
On the other hand, they now have the opportunity with BEADchain to prove to the insurance company that the devices used in the building are used properly so that they can get a discount.
As a result, the customer achieved 25 percent savings and by the end of 2019 they will have a five percent discount from the insurance company.
4. What other blockchain use cases in the energy industry are you excited about?
SH: We think it is very important to produce data from the buildings which collectively consume over 40 percent of the total energy consumption (in a city). Profiling those building can give us an idea about the usage trends in different parts of the city and can be used to optimize the production and grid, but also to optimize the use of renewable energy sources. We can
create those digital models and then audit buildings on the grid with smart contracts to help us create better, more sustainable cities.
5. Where will BEAD be in 5 years?
SH: We would like to create a central database for smart cities linked through blockchain tech. This database can be used to:
- Optimize public transportation
- Optimize energy usage
- Reduce risk in buildings
- Optimize space usage
A system which creates real-time data, links that data to blockchain, and uses the data to optimize the everyday lives of humans without interfering with privacy is our ultimate goal.