LCG Energy is a licensed utility provider, energy trader and contractor with over 10 years of experience in the european energy market. Recently, the company announced its blockchain initiative that would position it as the first utility company to implement the technology in multiple aspects of its operations across its supply chain.
We talked with Michael Opitz, the CEO of LCG Energy about the history of the company and what solutions their upcoming project will offer to the energy sector.
Q: Mr Opitz, can you tell us more about LCG Energy and what have you achieved with the company since its foundation?
M: LCG Energy was founded in 2009 as an energy trading company with private funds. Shortly after we expanded the range of our activities to energy contracting and energy supplying. In 2015 we acquired licensing by the German and Austrian Federal Network Agencies for Electricity, Gas, Telecommunications, Post and Railway, positioning us as one of the few independent utility providers in the DACH region. We are currently serving the needs of 50.000 customers in both Germany and Austria and are planning to expand the scope of our services to the Netherlands and Hungary where we already have established subsidiary companies. Our partner network consists of over 1100 suppliers and various enterprises within the energy industry.
Since our foundation, we have incurred no debt and our financial performance has been positive each year, with each financial statement being better than the previous one. Last year alone we had 20 million euros revenue with projections for 2019 going up to 90 millions euros due to several new strategic partnerships and the expansion of our reach throughout Europe.
Over the last decade we have managed to offer our customers prices that are approximately 20% lower than the market average – and we did that in a market where there is an uphill battle going on in terms of costs of electricity production and supply.
Q: What problems is the LCG Energy project solving and what is your solution?
M: As you probably know, the prices for electricity around the world are rising dramatically and Germany is at the top of the list with over 30 cents for a kW/h. This is a major challenge for businesses across multiple industries, especially those that rely on high energy consumption, as it squeezes their margins even further. With the LCG Energy project, our Smart Meters and their integration with blockchain technology, we are planning to enhance their efficiency and push our approximate cost savings for the end consumer of 20% even further, potentially reaching 40% and even more.
Another challenge we are addressing with the LCG project is the lack of transparency between big utility providers and the end consumers which results in informational asymmetries. Over the years, utility providers have earned the reputation of monopolists due to the high market entry barriers in the energy industry, which results in very few options for the consumers. With their immense market power, these companies are able to transfer any additional cost to the end consumer and in the current system, they are not obliged to report any information . With the blockchain-based online platform and the integration between blockchain technology and our existing smart meters, we will make this voluntary step to prove that there are more sophisticated ways for utility providers to thrive rather than to diminish the rising costs simply by transferring them to the consumer.
We are also tackling the problems with energy trading and the traditional financial markets where decentralization has already proven to be superior to the traditional model. Our platform allows for the investments in renewable energy projects through blockchain-based data infrastructure, which offers much more security, lower transaction costs and accessibility. Blockchain removes the need for intermediary parties in a transaction, which means that only the gas fees that apply for crypto transactions are the costs the parties have to carry. Furthermore, by distributing the data entries across multiple nodes, hacking becomes close to impossible, as over 50% of all nodes in the network will have to be accessed in order to manipulate any transaction.
Q: Why should investors consider joining your initiative?
M: As an experienced company with over 10 years of experience, we believe that we can offer much more financial security and overall reliability for our investors compared to most traditional ICOs that are conducted by startups with no market experience and track record. Moreover, we are a licensed and regulated company by the german and austrian states, an advantage very few of the companies on the ICO market have had in the past.
We have implemented advanced tokenomic measures in order to support the LCG Energy token in the long term against price fluctuations associated with Initial Coin Offerings and their tokens. We will dedicate 80% of the proceedings collected via the ICO sale to the purchase of energy and will thus back the LCG token with a real economic good that has stable value. Furthermore, we are incentivizing investments by offering bonus tokens for early adopters of LCG Energy that range between 15 and 30%.
Perhaps the most important incentive for potential investors is the breakthrough integration between Smart Meters and blockchain that we are planning to patent for the upcoming 8 years. We believe that blockchain has a vital part to play in the future of the energy sector and by seizing this opportunity, we will secure a significant competitive advantage that will allow us to expand globally in the following 2 years.
Q: Could you give us more details about the ongoing token sale?
M: Here is the most important info investors should be aware of:
- Token name: LCG
- The number of tokens to be issued: 2,500,000,000 LCG
- Total for sale: 1,750,000,000 LCG (70% of total tokens)
- Fiat currencies accepted: USD, EUR
- Cryptocurrencies accepted: Bitcoin (BTC), Ether (ETH)
The token sale will be carried out in three stages: Private-sale, Pre-Sale, Main Sale
If you are interested in the LCG Energy project and want to learn more about it, head over to the website https://lcg-group.de/ where you will find all of the information about the company behind it, its blockchain initiative and its future plans.
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