Thread by @patio11

In "extremely interesting infrastructure improvements that it takes a startup to do", see OhmConnect.

ohmconnect.com/how-it-works/w…

It is, effectively, negative surge pricing for electricity usage to virtually expand grid capacity w/o requiring a capital upgrade.

https://twitter.com/Kyle_Ries/status/1339426655266164736

This takes advantage of some quirks of electricity generation and usage, which is that baseload power is consistently available but very expensive to store relative to provide, but actual usage is not consistent throughout day/week.

So Ohm's business model is "I am going to contract with you, the power company, to buy X,000 homes worth of electricity, which I intend to resell near retail. I will also use *much less than that* when the grid is stressed. So, quote me aggressively on the rate please."

And the way they deliver on "using much less when the grid is stressed" is building a communication channel to their users and directly incentivizing them "If you can shift your electricity usage via e.g. powering down now, please do so; we will pay you enough to make worthwhile"

(It sort of amazes me that one can actually move the needle enough for retail consumers to motivate behavior, but then again I am related to a number of people who will scold me over not turning off a light when exiting room because wasting 0.3 yen doesn't reflect prudence.)

(Ah, misunderstood the model. They don't resell electricity; they just do the contractual "We'll give it 'back to' the grid" thing.

The way this would be implemented in Japan would probably be a reseller model since everyone wants the billing relationship, for reasons.)

(For more on the Japanese power market than you ever wanted to know: emsc.meti.go.jp/english/info/p… )

"What reasons?"

Basically every company with an autobilling relationship with consumers, plus some entrants, will happily try to get your electricity business to increase share-of-wallet, perhaps incentivizing a move with more points for their primary ecosystem.

Prominent players include Softbank (mobile phones/Internet) and their competitors, Rakuten (large e-commerce marketplace plus financial services), large real estate firms, the gas company ("Why not?!"), the water company ("Why not?!"), etc etc.