blockchain for utilities - amazon s3 · why should utilities consider blockchain now? august 3,...

August 3, 2018CONTENT COPYRIGHT © 2018, ENERGY BLOCKCHAIN

CONSORTIUM, Tony Giroti, [email protected]

Blockchain for Utilities

Aug 3rd 2018

Tony Giroti, [email protected]

Content Copyright © 2018, ENERGY BLOCKCHAIN CONSORTIUM, Tony Giroti, [email protected]

Energy Blockchain Webinar Series: Webinar #3

Your Presenter

Tony Giroti• 25+ years in IT

• Bachelor and Masters in Electrical & Computer Engineering

• Developed Distributed Computing Platforms

• Developed High Availability Transaction Processing Applications

• Designed Fault-Tolerant, Massively-Scalable Supercomputers

• Entrepreneur, Founded a few Startups

• Spent last 12 yrs in Energy, Smartgrid and now Energy Blockchain

• Emeritus Council, Board member in US DOE GWAC, NIST SGIP

• 5 USPTO Patents

• Chairman, Energy Blockchain Consortium

August 3, 2018 CONTENT COPYRIGHT © 2018, ENERGY BLOCKCHAIN CONSORTIUM, Tony Giroti, [email protected] 2

Disclaimer

Any product, individual or company mentioned in this webinar should not be construed as an endorsement by the Energy Blockchain Consortium. We have avoided the use of names so any mention is purely coincidental or for illustrative purposes only. All participants are expected to conduct in the webinar per the professional, business like and common sense norms.


Energy Blockchain Webinar Series

• Energy Blockchain Webinar Series created by Energy Blockchain Consortium• Today’s Webinar is the 3rd Webinar

• FREE to anyone registering (energy-blockchain.org/webinars)

• 12 Webinars: 1st Friday of month (except holiday weeks) @12noon (60-90min)• 2018: Jun 1, Jul 13, Aug 3, Sep 7, Oct 5, Nov 2, Dec 7• 2019: Jan 4, Feb 1, Mar 1, Apr 5, May 3

• Webinars are also available for offline viewing

• About Energy Blockchain Consortium:• Non-Profit consortium of companies interested in using Blockchain technology to solve the most

compelling problems in the Energy industry. Become members. Visit energy-blockchain.org or send me an email [email protected]


Topics

• Utility Industry Transformation (Before Blockchain)

• 30 Blockchain Use Cases for Utilities

• Why should Utilities consider Blockchain now?

• How can Blockchain benefit Utilities?

• Will Blockchain dis-intermediate the Utilities?

• How should Utilities prepare for Blockchain?

• Next Steps



Utility Transformation

From Utility Point of View

Utility Transformation


04 Data & SecurityHarness the Data in meaningful waysHeightened Security demandTech on Grid Edge causes vulnerabilities

07 Customer Expectations• Consumers becoming Prosumers• Demanding clean energy• Always Connected• Higher Customer Expectations• Want Energy Management

01 Digitization & SmartGrid• AMI/AMR, Smart Metering• IT/OT Integration• Distribution Automation• IOT generating Data• Data needs to be harnessed for Analytics

02 Decentralization• From Large Power Plants to DER• From Regulated/Vertically to Deregulation• From Uni-direction to Multi-direction flow• From Cust at single location to roaming EV

05 Technology Challenges• Maintain Grid reliability with changes• Integrate Transactive Energy• Intelligent Devices, IoT• AI, EV, Automation

03 Democratization• Demand Driven, Consumers playing a role• Demand for Clean Energy / Renewables• From Monopoly to Competition• Democratization of the industry

06 New Business Models• Prosumers & DER integration • Handle new disruptive technologies• New Regulations & Energy Policies• Net Energy Metering, others• New Pricing models

How Blockchain can help


Simplify Digitization, Harness investment In AMI & SmartGrid

Dist. Ledger enablesDistributed, multi-party transactions

Foster Collaboration& Choices for Cust. and Stakeholders

Unlock value of Data,Improve On Grid & Grid Edge Security

Solve problems that were once either noteconomical or difficult

Create innovative solutions that were not possible before

Empower Customerswith new services &Engagement models


30 Blockchain Use Cases for Utilities

From Utility Point of View

30 Blockchain Use Cases for Utilities


DER & EV Integration3 Use Cases: 14. Enable EV Charging anywhere withunified billing, 15. Improve DER Integration

Energy Trading4 Use Cases: 1. P2P trading & micropayments betweenProsumers with Utility providing trusted authority andCustomer Service,

Grid Mgmt., Transactive4 Use Cases: 3. Manage DER generation & DER ServiceCoordination,

Empower Customers6 Use Cases: 8. Provide Green energy choices, 9. EnableP2P home EV charging,

Security4 Use Cases: 28. Secure edge devices, 29. Protect EnterpriseData, 30. Grid Security: Build a trustworthy infrastructure forall Digital Services, including PKI, DC, DNS

Emission Tracking3 Use Cases: 17. Encourage Green Energy Usage, EnergyConservation, Energy Efficiency with SustainabilityAttribution and other means,

Energy Data, Metering5 Use Cases: 21. Record, Store, Track Energy Data with MRVof Data, 23. Use load profile for energy procurement,infrastructure planning and VPP

Regulatory, Compliance3 Use Cases: 25. Provide Transparency to Regulators &Customers, 26. Provide Regulators with framework tomanage Energy Trading

30 Energy Blockchain Use cases


DER & EV Integration14. Enable EV Charging anywhere with unified billing.

15. Improve DER Integration.

Energy Trading1. P2P trading & micropayments between Prosumers

with Utility providing trusted authority and Customer Service.

2. Trading Platforms to Provision Wholesale Energy Trading, Wholesale market settlement, balancing markets and intraday trading.

Grid Mgmt., Transactive3. Manage DER generation & DER Service Coordination.

4. Offer Transactive energy based & Price ResponsiveDemand Response.

Empower Customers8. Provide Green energy choices for purchase ofpower.

9. Enable P2P home EV charging so unused chargerscan be utilized without creating charging stations.

10. Provide Billing transparency.

30 Energy Blockchain Use cases


Security28. Secure edge devices.

29. Protect Enterprise Data.

30. Grid Security: Build a trustworthy infrastructure forall Digital Services, including PKI, DC, DNS.

Emission Tracking17. Encourage Green Energy Usage, EnergyConservation, Energy Efficiency with SustainabilityAttribution and other means.

18. Certificate of Origin and Manage EmissionTracking.

Energy Data, Metering21. Record, Store, Track Energy Data with MRV ofData.

23. Use load profile for energy procurement,infrastructure planning and VPP.

24. Provide Energy Management Compliance for C&I& Buildings.

Regulatory, Compliance25. Provide Transparency to Regulators &Customers.

26. Provide Regulators with framework to manageEnergy Trading.

27. Provide Regulators with data to manage anti-trust laws and Deregulation.

Home Utility (HU) Visitor Utility (VU)U U

P

Electricity Grid

1

EV Charging & U2U Integration


Transaction

1. Customer Charges EV at Home Utility (HU)

2. Transaction submitted in HU Private Blockchain

3.HU Permissioned Blockchain validates Transaction with PoA

4. HU Blockchain calcs Bill, Performs Settlement

5. HU Performs Cust Service & Billing Function

6. Customer charges EV at Visitor Utility (VU)

7. Transaction submitted in VU Private Blockchain

8.VU Permissioned Blockchain validates Transaction with PoA

9.Interoperability Standards allows it to push transaction to Public Utility Blockchain

10Public Blockchain performs Financial Settlement between HU and VU with PoS

11Interoperability Standards allows PU Blockchain to integrate with HU Blockchain

12 HU does Integrated Cust. Billing & Settlement

Bill

BB

P

Electricity Grid

6

Public Utility Blockchain(Energy Blockchain Consortium)

B

9

1

2

2

Permission Blockchain3

3

4

4

5

5

6

Permission Blockchain

77

8

8

9

10

10

11

11

12

12

P2P Trading - Transactive Energy


OC

Micro Grid

IT Grid / Blockchain

B

P

U

23

4

5

6

Transaction

1. Price Signals (optional)

2. Produces Electricity

3.Places Order with pre-negotiated price with P or (b) Buys via Exchange, Consumes Electricity

4. Removes KWH from Producer into Grid

5.Balancing Function, Manage Load, Frequency, Power Factor

6. SmartContract, Billing and Settlement

7.Proof of Authority (Confirmation), Customer Service

8. Proof of Stake (Other)

7

Note: • P & C may be connected to a feeder line originating

from the same substation or the two maybe on different feeder lines on two substations

Electricity Grid

Energy Market

I1

8

I ISO / RTO

P Producer

C Consumer

U

O

B

Utility

Operations

Blockchain 1,4,5,6,7,8: Provided By Utility using Blockchain


Why should Utilities consider Blockchain now?

Why should Utilities consider Blockchain now?


To Manage Disruption

DER integration on theedge will cause disruptionand will impact Gridreliability. This will reducequality of power.Blockchain can helpmanage this disruptionand make the grid morestable.

To Lower Cost, More Efficiency

Use Blockchain to replaceexisting in-efficiencies andreduce cost of doingbusiness. Many processesare candidates for improvingefficiencies. Use Blockchainto improve transactions andreduce overheads.

For Proactive Security

Use Blockchain toimprove the security ofnew assets at the edge ofthe grid and within thegrid. Use Blockchain toinvest incrementally toimprove security overtime.

Don’t get left behind

Become a trusted partyin P2P trading todeliver QoS consumersare used to. Utilitiescan become thetrusted intermediaryand avoid beingdisintermediated.

Stay ahead of Cust Demands

Use Blockchain to meetCustomer demands asthey will demand greenenergy, improved billing,better customer service,faster integration ofrenewables, flexible EVcharging and one-billservices..

For Regulatory Transparency

Work proactively withRegulators and Policy Makersto enable transparency withBlockchain. Work withRegulators proactively fornew rate structures andcustomer protection.

1

2

3

4

5

6


Will Blockchain disintermediate Utilities?



0

5

10

15

20

25

30

35

now-3 yrs 3-10 years 10-15 years 15+ years

Customer Usage

Utility as Supplier LSE as Supplier DER as Supply Utility Services

Over time, Utility willnot be the only supplier

Today Electricity is deliveredprimarily by Utility with someswitching to LSE Suppliers

Customers buyingpower from Generatorsvia Suppliers increases

In Deregulated markets thetrend to buy power fromSuppliers or directly fromGenerators will increase

DER will replace poweras an alternative frombuying from others

DER use will increase andmay become substantialsource of power

Utilities will offer moreservices over time

These services are beyonddeliver power and billing



NO Blockchain will not disintermediate Utilities.

But Blockchain will cause disruption and new business models will need to be created to manage this disruption.

To reduce Business Risk from this disruption, Utilities should work proactively with Blockchain to stay ahead.

(a) Embrace Blockchain now

(b) Work in a team or a consortium to share learning

(c) Prepare for new business models, more value added services


How should Utilities prepare for Blockchain?

Approach to using Blockchain


01 Create Plan1 Build momentum within yourorganization. 2 Build a businesscase for Blockchain, 3. Geteducated on Blockchain. 4. Join agroup or consortium

03 Proof of Concept1. Identify and Participate in a pilotor start your own pilot. 2. Don’t startfrom scratch and increase time tomarket and risk to your organization;leverage work of others.

05 CommercializeRoll the pilot to all or a majority ofcustomers in multi-phaseapproach.

02 Develop Use CaseIdentify a few simple use cases basedupon existing work done by others andyour internal priorities. (Refer to theUse case Catalog by EBC).

04 Field Pilot1. Roll the PoC in the fieldwith real customers and realdata. 2. As an alternative,participate in someone else’spilot to learn before startingyour own field pilot.

Want Report?


• Send email to [email protected]

• $499• Get Free Report

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• Ask Question from the Presenter on the Webinar and Report

• Get Updates on the changes to the Use Cases

mailto:[email protected]

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Energy Blockchain Conference


Thank You


Contact Information

Tony Giroti

[email protected]

617.480.6550

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