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6. Case Study

Wind Farm Tokenization
Project Background
  • Project: 10 MW Wind Farm
  • Objective: Raise funds through Dowgo Tokens
  • Period: 5 Years
  • Yield: 10% Annually
  • Price per kWh: 0.07€ (fixed price for the entire period)
  • Tokenization: Half of the wind farm's annual energy production
Tokenization Strategy
  • Each Dowgo Token represents 1 kWh of energy production per month.
  • 50% of the wind farm's energy production is tokenized over a 5-year period.
Financials
  1. 1.
    Annual Energy Production:
    • Wind Farm Capacity: 10 MW
    • Average Production Capacity: 35%
    • Annual Production = 10 MW × 35% × 8,760 hours = 30,660 MWh.
  2. 2.
    Tokenized Energy Production:
    • Tokenizing 50% of Annual Production = 30,660 MWh × 50% = 15,330 MWh.
  3. 3.
    Number of Tokens:
    • Total kWh tokenized over 5 years = 15,330 MWh × 1,000 × 5 = 76,650,000 kWh.
    • Number of tokens = 76,650,000 kWh / (5 years × 12 months) = 1,277,500 tokens.
    • Total Revenue per Token over 5 Years = 0.07€ × 5 years × 12 months = €4.20
  4. 4.
    Funds Raised:
    • 4.20€ = Issuance Price × (1+10%)^5
    • Issuance Price per Token = 2.60786955 ≈ €2.61
    • Total Funds Raised = Number of Tokens × Issuance Price = 1,277,500 × €2.61 = €3,331,553.
  5. 5.
    Investor Returns:
    • Total Revenue per Token over 5 Years = €4.20
    • Total Revenue for All Tokens = 1,277,500 × €4.20 = €5,365,500.
  6. 6.
    Yield for Investors:
    • Total Yield per Token over 5 Years = €4.20 - €2.61 = €1.59213044 ≈ €1.59
    • Total Yield for All Tokens = 1,277,500 × €1.59 = €2,033,947.
Summary
  • Project: 10 MW Wind Farm
  • Objective: Raise funds through Dowgo Tokens for 5 years
  • Issuance Price per Token: €2.61
  • Total Funds Raised: €3,331,553
  • Total Investor Returns: €5,365,500 over 5 years
  • Total Benefits for Investors: €2,033,947 over 5 years
This use case illustrates a sustainable and profitable approach to funding renewable energy projects through tokenization, offering both a substantial return on investment for buyers and significant fundraising potential for the project owner.