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Martin:
In what currency is the investor paid? Does he get the right to use some kWh or is he paid money? Or does money even exist in your dream world? How do you handle, that a kWh at noon is more valuable than a kWh in the night? And how are investors in Japan paid, that don't have a access to the Scottish grid, and what about losses in the grid due to transportation? How do I pay my taxes on the return of investment?

The investor is buying a financial asset, not unlike a share in an Exchange Traded Fund, or a Unit Trust. The difference is that this financial asset is redeemable for energy supplied.

The investor has the choice of selling the Unit at the market price for energy, or redeeming it against energy consumed. Japanese investors don't have much use for electricity in Scotland, and therefore have a sterling/yen currency risk. But what's new about that? They'd have a similar risk on anything they buy as an investment in Scotland.

As far as money and dream worlds go, I would say that it is perhaps you who inhabits what is increasingly becoming a nightmare world. Our system of Money as Debt is falling down around us: if you think there is a debt-based solution on the way, please point me to it.

Martin:

But now, if the wind turbine gets destroyed in an accident, those investors will lose their money, right? So you can't change the fact, that there is revenue, and there is a risk to this revenue. The bank sends Jerome to estimate the likelihood of all that risk and revenue and prices everything accordingly, bundles it, and I can have a simple checking account. I don't want to take risks on the money I use to buying rolls, that I don't understand.

I'm not talking about one wind turbine in isolation: that was merely an example of the fact that wind turbines are essentially "self funding". I am talking about the entire networked energy clearing system, incorporating cross border grids and other infrastructure.

As for the money you use to buy rolls, the pieces of paper you are accustomed to presenting in payment have no intrinsic value. It's a bit different if you present a redeemable Unit issued by the baker, though, isn't it?

Energy-based Units will only be a small part of value in circulation, but an important one because of their pretty much universal acceptability.

This is particularly the case for Units redeemable in (say) natural gas, which is IMHO capable of becoming both a pretty important global means of exchange and vehicle for investment during a period of transition to renewable energy.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Fri Feb 20th, 2009 at 08:41:38 PM EST
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