Nick Gogerty amp Joseph Zitoli ngogertythoughtfulcapitalcom jzitolithoughtfulcapitalcom Split Croatia July 2012 Drivers of Human Development Technology amp Applied Information Energy Density ID: 808146
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Slide1
DeKo: An electricity-backed currency proposal
Nick Gogerty & Joseph
Zitoli
ngogerty@thoughtfulcapital.com
jzitoli@thoughtfulcapital.com
Split, Croatia July 2012
Slide2Drivers of Human Development
Technology & Applied Information
Energy Density
Political and Economic Policies
Slide3Debt-Backed Currency Subject to Defaults
% of Countries in default or restructuring 1800-2009
Slide4Gold-Backed Currency is
Volatile
vs.
Electricity
Source: U.S. Energy Administration and World Gold Council
Slide5Delivered Kilowatt Hours (DeKo)
are
backed with
PPAs
Power Purchase Agreements (PPA):
Two party contract: A generator of electricity for the purpose of sale (the seller) and one purchaser of electricity (the buyer
or
off-taker).
DeKo central bank purchases electricity from power generators at long term fixed prices and sells electricity to off-takers at market prices.
Slide6DeKo – Higher
Utility and More Certain Claim
Certainty of claim relates to future realizable value
Utility is Social and Economic
value creation potential
Slide7Simplified Central Bank Balance Sheet
Assets
Foreign Exchange Reserves
Securities
Loans
Gold
Electricity Delivery PPAs
Liabilities
Issued
Currency
Government
Deposits
Bank
Deposits
DeKo Proposal
Slide8Countries % Electricity Production from Renewable Sources
Paraguay100.00
Lesotho 100.00
Iceland 100.00
Albania 100.00
Tajikistan 100.00
Bhutan 99.97
Mozambique 99.92
Zambia 99.71
Nepal 99.67
Dem. Rep. Congo 99.42
Burundi 99.04
Norway 96.63
Angola 96.45
Belize 94.88
Kyrgyzstan 93.30
Costa Rica 93.15
Laos 92.46
Brazil 88.88
Ethiopia 88.18
Malawi 86.58
Colombia 85.66
Georgia 85.50
Republic of the Congo 82.08
Central African Rep. 81.25
Cameroon 77.29
New Zealand 76.73
Ghana 75.09
Uganda 74.95
Namibia 70.82
Austria 70.02
Venezuela 69.57
Fiji 68.04
Madagascar 66.82
Canada 64.23
Ecuador 64.12
Panama 63.29
Source: http
://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=2&pid=2&aid=12
Slide9Renewables: Fastest growing source of energy consumption. A place for central bank PPA investment?
Source: http://www.iea.org/weo/
http://
energy.aol.com
/2011/09/20/global-energy-outlook-puts-china-and-
india
-at-the-fore/
Slide10Due
to
TFP increase Value to Energy is not fixed.
Since 1980: 90% more efficient at producing GDP
Source: http://www.eia.gov/forecasts/aeo/pdf/0383(2012).pdf