The problem Decentralized Power Distribution System solves

• Big players and monopolies including Nepal Electricity Athority have very translutent ways to handle power supply. This can enable lots of conditions: from players being able to sell power illicitly which can cause power scarcity leading to loadsheddings to them being to uphold power generation and distribution to push costs.
• Nation like Nepal can have power economy of upto 20 billion dollars, because of its water resources. And it would never be an ideal situation to have a very rich, almost self regulating unit like NEA in a nation.
• Also a lots of distributing units negligently handles power supply which results in the loss of billions of units of power supply around the globe.

Our solution makes all the players of the power suply network including power plant, distributor and consumer periodically submit their energy transfer reading to the blockchain. Here, the energy transfer is mimicked in the form of tokens of the smart contract and is transferred, is paid for and is destroyed as real energy among the players in the blockchain.

• This makes the entire supply transparent, which means anyone can track the power supply from its gereration to its usage.
• Cost is calculated on the basis of pre determined and transparent variables, making the system very cost efficient for the consumer.
• Because the system is decentralized and autonomous by smart contract new and small players like micro hydropowers can easily take part and be in business.
• Because distributor is penalised for the loss of energy( if more than ideal loss ), power loss is minimal, and illicit selling of power by middle players like distributor is minimised.

Challenges we ran into

• One of the most central problem to our project was to mimick the energy units. We knew about ERC20 token, but it is not exhaustible like real energy. But after a little bit research we struck against quite new ERC777 which could be destroyed and perfectly fitted into our project framework where tokens would be created by power plants and transferred against ETHER to the consumer, who could destroy it after using the energy.

• Another problem was to compensate middle-man distributors for their service and the power losses they faced, which was also solved after we came up with following relation:

Factor to increase cost for distributor = (Ideal Loss (%) + Distributor Service Cost (%) ) -[ [ (Actual Loss (%) - Ideal Loss (%)) if > 0 else 0 ]] * Penalty
This also penalizes the distributor if it loses too much energy.