FinTech for Renewable Energy Markets (FinER)

Prof. Gilbert Fridgen, SnT, University of Luxembourg

Prof. Nils Löhndorf, Depmt of Econ. & Mgmt, FDEF, University of Luxembourg

Description

Digitalization of energy systems and markets is a key enabler for reaching the EU's climate goals. Renewable power purchase agreements (PPAs) are an increasingly popular instrument to finance renewable energy projects. However, there are no financial instruments to hedge the captured price of renewable PPAs, which limits their use in financing investments in renewables. This project investigates the feasibility of “renewable power futures” as financial derivatives for renewable PPAs. A particular focus will be the feasibility of using smart contracts to encode PPA properties and ensure proof-of-origin.

The goal: Develop renewable power futuresas smart contractsand investigate theirapplication for hedging the pricerisk of renewable PPAs

Renewable Power Futures

• Encode renewable power futures as smart contracts with dynamic load profiles.

• Contrasts rigid contracts with static load profiles.

• Encode PPA characteristics n a standard manner, allowing for standard pricing formulae.

• Attach proof-of-generation to smart contract as immutable proof-of-origin.

• Non-fungible tokens (NFTs) and distributed ledgers as possibletechnologies.

RegCheck: Program analysis for regulatory compliance assessment of FinTech Software

J. Klein (SnT), S. Tosza (FDEF), T. Bissyandé (SnT), D. Bianculli (SnT), S. Abualhaija (SnT) University of Luxembourg

Project Description

RegCheck aims at developing a tool that facilitates compliance checking of software systems against data protection regulations (e g , GDPR)

Project Output

Outlook

• Early cooperation with Luxembourgish energy companies (Encevo, Enovos)

• Mid-term collaboration with tech startups (Nexxtlab, DataThings)

• Long-term goal: integrate FinER into ecosystem of investments in renewable energies (Green Exchange LGX, Alma Solar).

Expected Impact

• Contributing to "Compliance by Design"

Compliance checking of software systems against regulations

• Bringing together software concerns and regulatory compliance concerns (multi-disciplinary)

• Providing tool support to be integrated in the NCER date lake: compliance checking of apps and services developed as part of the infrastructure

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Potential Partners

• The CSSF

• One or more Big Four companies (EY, Deloitte, KPMG, PwC)

• Software development companies