3. Q&A Platform
To ask questions to any of the panels
throughout the day, visit gtm.cnf.io on
your smartphone or laptop. You can also
follow along with the slide decks here.
4. Slides
Most of the slide decks from the conference will be emailed to all
attendees at the close of the conference.
5.
6. Questions? Enter them at gtm.cnf.io #gtm
London, UK
October 2
Austin, TX
October 29 - 30
Denver, CO
December 3 - 4
Upcoming GTM Conferences
Austin, TX
October 28
8. Questions? Enter them at gtm.cnf.io #gtm
Welcome & Opening Polls:
Getting to Know the Audience
Elta Kolo, Ph.D.
Wood Mackenzie
Power & Renewables
Research Manager, Grid Edge
9. Questions? Enter them at gtm.cnf.io #gtm
The Blockchain Opportunity in
the Evolution of the Grid
Scott Clavenna
Greentech Media
Chairman
10. Trusted Power and Renewables Intelligence woodmac.com
The Blockchain Opportunity in the Flexible Grid
Scott Clavenna | September 2019
11. woodmac.comTrusted intelligence
Wood Mackenzie offices Wood Mackenzie Power & Renewables offices
Wood Mackenzie is ideally
positioned to support
consumers, producers and
financers of the new energy
economy.
— Acquisition of MAKE and Greentech
Media (GTM)
— Leaders in renewables, EV demand
and grid-connected storage
— Over 500 sector-dedicated analysts and
consultants globally, including 75
specifically to power and renewables
— Located close to clients and industry
contacts
About Wood Mackenzie
We provide commercial insight and access to our experts leveraging our integrated proprietary metals, energy
and renewables research platform
13. 13
woodmac.com
What We Know Today
Blockchain is real, but it won’t be revolutionizing any energy markets soon
— ICOs were the worst thing to happen to blockchain
» Created the impression that the number of companies formed was a reflection of the maturity of the
technology
» ICO’s are diligence-free funding rounds, so they reflect nothing about the technology, only about
investors
» Attracting non-traditional investors meant focusing on the most “disruptive” possibilities for blockchain,
shifting the focus to disintermediation of utilities and complex peer-to-peer energy models
— Absent the noise around ICOs, real linear progress has been made
» Consortia formed
» Pilots and POCs undertaken
» Market education
» The notion of disintermediating the utility has fallen away
14. 14
woodmac.com
Blockchain 2019 – What is the Market Telling Us?
There are reasons for optimism and concern
— Optimism
» Blockchain has entered the consciousness of the energy industry, and being explored for dozens of use
cases by the largest utilities and energy players
» Funding has transitioned to more traditional sources (venture capital, strategic investors)
» Applications such as REC attribute verification and tracking have been commercialized
» Activity in Europe and Asia accelerating with the creation of “regulatory sandboxes”
— But….
» The technology is still considered immature, lacking in standardization, and of dubious governance
» Deeper exploration has brought many tradeoffs to light around scalability, data privacy and security, and
efficiency
» Very uneven progress towards a more transactive grid has limited blockchain pilots and POCs.
» The cart is out ahead of the horse!
22. woodmac.comTrusted intelligence
The Energy Transition and the
Digital Revolution are creating
a new power landscape
The Power Market of the Past
A top-down, flow from supply to demand
Dispatchable
Generation
Transmission Distribution
End
Customers
Tomorrow’s Decarbonized and Decentralized Power Market
A bi-directional energy network with new technologies and actors at every node reshaping power market planning and
operations
Dispatchable
Generation
Transmission Distribution End Customers
Intermittent
Generation
Energy
Storage
Advanced Metering
Infrastructure
Distributed
Generation
Electric
Vehicles
Connected
Devices
Demand Side
Management
23. 23
woodmac.com
High Penetration Renewables Makes Flexibility a Requirement for the
Grid and Upends Utility Business Models
“Utilities May Lose Control of Generation, but Gain Control of Load”
— All the drivers are in place to catalyze the next phase of grid evolution
» Low-cost distributed energy resources (rooftop solar PV, energy storage, customer demand-side
management technologies)
» Customer interest in greater management of their energy usage, plus knowledge of the source/type of
generation
» Increased interest in local resilience
» Climate action drives clean energy targets towards 100%
» Early moves towards a new regulatory framework (eg, performance-base regulation)
— The result?
» Rethinking of the distribution utility (distribution system operator concepts, and retail energy market
reforms)
» A patchwork of DER aggregation models coalesces into a grid flexibility framework
24. 24
woodmac.com
We Are Entering a New Phase of Grid Evolution
The move from accommodating renewable energy and DERs to orchestrating them
Smart Grid
• Utility-Centric
• Distributed Intelligence
• Bi-directional Comms
• Resilience goals
• Era of AMI
Grid Edge
• Ecosystem-centric
• DER integration
• Customer access to
wholesale markets
• Network sensorization
• Emergence of new
regulatory models (PBR)
• DERs for Infrastructure
deferment
• Utilities remain responsible
for grid balancing
The Flexible Grid
• Market-centric
• DERs for system-wide
benefits
• Rise of distribution-level
markets
• Distributed market
operations
• Wholly new models for the
utility (DSO)
• Decentralized grid
balancing responsibilities
25. 25
woodmac.com
The Flexible Grid is Complex, And Increasingly Decentralized
• The Flexible Grid Allows:
• Highest percentage of variable renewable
energy
• Decentralized grid balancing
• Broad transactive grid operation
• The Flexible Grid Requires
• An administrator of the distribution system
• An administrator of the distribution-level
marketplace
• Shorter time interval data
• Distribution-level locational marginal
pricing
• Asset registration
• Data access and privacy
• Security
Source: LBNL
26. 26
woodmac.com
Where Does Blockchain Come In?
— A flexible grid will ultimately necessitate new markets, and those markets will require
» Scalability, transaction speed in complex multilateral markets
» Cost efficiency, minimizing costs associated with supporting the vast volume of energy trades and
data exchanged
» Validity of data and transactions, and a process for reversability
» Security, which takes many forms in a highly transactive ecosystem
» Data privacy, a complex issue in regulated distribution-level energy markets, where customer energy
must be accessible by the market but must also remain “private”
» Regulation and Governance Markets must be designed around rules, and utilities and DSOs must
have full access to market platforms
» Reliability and affordability for all ratepayers
28. 28
woodmac.com
What needs to be better understood
— Is the blockchain better used as a final record of transactions (light touch) or as the fundamental
data and value exchange layer of an energy system (embedded model)
— What unique requirements do blockchain platforms force on the grid?
» Computing power and storage at the customer site/meter
» Data privacy/transparency tradeoffs
» Immutability/reversability tradeoffs
— What to do about blockchain governance? Who decides when it’s time to fork?
— Is proof-of-authority the most scalable consensus model? What are the security tradeoffs?
— Is the future of blockchain in energy in the hands of utilities, or outsiders?
— What level of standardization is required to accelerate adoption?
30. Questions? Enter them at gtm.cnf.io #gtm
Fireside Chat: IBM’s Blockchain
Advancements in the Energy Space
Fei
Wang
Wood Mackenzie
Power & Renewables
Senior Analyst, Grid Edge
Neil
Gerber
IBM
Director, New Energy &
Environment
M
32. Questions? Enter them at gtm.cnf.io #gtm
An Energy Blockchain Retrospective: Is
Blockchain Delivering on Promises from Two
Years Ago, and What’s Coming Next?
Elta
Kolo, Ph.D.
Wood Mackenzie
Power & Renewables
Research Manager, Grid Edge
Jesse
Morris
Energy Web
Foundation (EWF)
Chief Commercial OfficerM
38. 38
Our mission is to develop and deploy a decentralized digital
operating system for the energy sector in support of a low-carbon
energy future
Mission
In 2017 we launched Energy Web Foundation
39. We identified “over 100” use cases…
Process improvement (total = 55)Disruptive platforms (total = 52)
13
9
7
6
6
5
5
4
Communication
Grid management
Security
Mobility
Automation
Sales & Marketing
Billing
Metering and
data transfer
26
17
9
Transactive
energy
P2P Trading
Distributed
generation
Additional use cases
• RMI: 27
• Grid Singularity: 30
• PWC: 20
Game changer to potential game changer
Source: DENA/ ESMT survey of 70 German energy sector executives– November 2016
39
40. …and many hypotheses were put on the table
Blockchain will facilitate “peer to peer” electricity markets
Blockchain will disrupt the energy sector
Blockchains consume too much energy to be useful
Blockchains don’t scale (Tx per second)
Public blockchains won’t fit the energy sector
40
46. Answers are emerging
Blockchain will disrupt the energy sector
Blockchains consume too much energy to be useful
Blockchains don’t scale (Tx per second)
Public blockchains won’t fit the energy sector
Blockchain ≠ peer to peer electricity marketsBlockchain will facilitate “peer to peer” electricity markets
Hypotheses Reality
Blockchain = enabler of energy transition
Not the case (see EWC, POS or POA chains)
With smart solution design current scale sufficient
Privacy features needed on public and private networks
46
47. Renewable energy
Electric vehicles
Distributed energy
resources
Most importantly, it is becoming much clearer where blockchain can
unlock value in context of the energy transition
4747
50. Customers will not want to pay twice
From a utility-driven to customer-driven architecture
Customer-driven investments
Utility-driven investments
Utility
Customer
kWh
$$$
51. 51
Our assets can – with no owner, no bank, no invoice:
• Have their own identity
• Buy electricity and sell services to the grid
• Post collateral to trades
Blockchain can help market participants build relationships with assets
52. In this context, we’ve identified two primary ways blockchain technology
can unlock value—today—in the energy sector
52
•Today = unbundled
“certificates”
•Tomorrow = whole system
carbon accounting
Tracing energy and
energy attributes
•Leverage digital and
blockchain tech to capture
full value from DERs
Integrating DERs
Intrinsic Data
Relational Data
Operational Data
DER “Passport”
53. In this context, we’ve identified two primary ways blockchain technology
can unlock value—today—in the energy sector
53
•Today = unbundled
“certificates”
•Tomorrow = whole system
carbon accounting
Tracing energy and
energy attributes
•Leverage digital and
blockchain tech to capture
full value from DERs
Integrating DERs
Intrinsic Data
Relational Data
Operational Data
DER “Passport”
54. ROC
KY MOUN
TAIN
INSTITUTE
THE ECONOMICS OF BATTERY ENERGY STORAGE | 4
systems are located on the electricity system, the more
services they can offer to the system at large.
Energy storage can be sited at three different levels:
behind the meter, at the distribution level, or at the
transmission level. Energy storage deployed at all levels
on the electricity system can add value to the grid.
However, customer-sited, behind-the-meter energy
customer-sited storage is optimally located to provide
perhaps the most important energy storage service
of all: backup power. Accordingly, regulators, utilities,
and developers should look as far downstream in
the electricity system as possible when examining
the economics of energy storage and analyze how
those economics change depending on where energy
storage is deployed on the grid.
FIGURE ES2
BATTERIES CAN PROVIDE
UP TO 13 SERVICES TO THREE
STAKEHOLDER GROUPS
ISO
/RTOSERVICES
CUSTOMERSERVICES
UTILITY SERVICES
Backup Power
Increased
PV Self-
Consumption
Demand
Charge
Reduction
Energy
Arbitrage
Spin /
Non-Spin
Reserve
Frequency
Regulation
Voltage
Support
Resource
Adequacy
Transmission
Congestion Relief
Transmission
Deferral
Distribution
Deferral
Time-of-Use
Bill
Management
Service not
possible
Service not
possible
DISTRIBUTED
TRANSMISSION
DISTRIBUTION
BEHIND THE METER
CENTRALIZED
Black
Start
Integrating distributed energy resources
54
55. ROC
KY MOUN
TAIN
INSTITUTE
THE ECONOMICS OF BATTERY ENERGY STORAGE | 4
systems are located on the electricity system, the more
services they can offer to the system at large.
Energy storage can be sited at three different levels:
behind the meter, at the distribution level, or at the
transmission level. Energy storage deployed at all levels
on the electricity system can add value to the grid.
However, customer-sited, behind-the-meter energy
customer-sited storage is optimally located to provide
perhaps the most important energy storage service
of all: backup power. Accordingly, regulators, utilities,
and developers should look as far downstream in
the electricity system as possible when examining
the economics of energy storage and analyze how
those economics change depending on where energy
storage is deployed on the grid.
FIGURE ES2
BATTERIES CAN PROVIDE
UP TO 13 SERVICES TO THREE
STAKEHOLDER GROUPS
ISO
/RTOSERVICES
CUSTOMERSERVICES
UTILITY SERVICES
Backup Power
Increased
PV Self-
Consumption
Demand
Charge
Reduction
Energy
Arbitrage
Spin /
Non-Spin
Reserve
Frequency
Regulation
Voltage
Support
Resource
Adequacy
Transmission
Congestion Relief
Transmission
Deferral
Distribution
Deferral
Time-of-Use
Bill
Management
Service not
possible
Service not
possible
DISTRIBUTED
TRANSMISSION
DISTRIBUTION
BEHIND THE METER
CENTRALIZED
Black
Start
Integrating distributed energy resources
55
•DERs are not deployed in
any systematic /
coordinated way
•Though technically
capable of delivering
value to multiple
stakeholders, in reality
they are isolated from
grid operations
56. ROC
KY MOUN
TAIN
INSTITUTE
THE ECONOMICS OF BATTERY ENERGY STORAGE | 4
systems are located on the electricity system, the more
services they can offer to the system at large.
Energy storage can be sited at three different levels:
behind the meter, at the distribution level, or at the
transmission level. Energy storage deployed at all levels
on the electricity system can add value to the grid.
However, customer-sited, behind-the-meter energy
customer-sited storage is optimally located to provide
perhaps the most important energy storage service
of all: backup power. Accordingly, regulators, utilities,
and developers should look as far downstream in
the electricity system as possible when examining
the economics of energy storage and analyze how
those economics change depending on where energy
storage is deployed on the grid.
FIGURE ES2
BATTERIES CAN PROVIDE
UP TO 13 SERVICES TO THREE
STAKEHOLDER GROUPS
ISO
/RTOSERVICES
CUSTOMERSERVICES
UTILITY SERVICES
Backup Power
Increased
PV Self-
Consumption
Demand
Charge
Reduction
Energy
Arbitrage
Spin /
Non-Spin
Reserve
Frequency
Regulation
Voltage
Support
Resource
Adequacy
Transmission
Congestion Relief
Transmission
Deferral
Distribution
Deferral
Time-of-Use
Bill
Management
Service not
possible
Service not
possible
DISTRIBUTED
TRANSMISSION
DISTRIBUTION
BEHIND THE METER
CENTRALIZED
Black
Start
56
Integrating distributed energy resources
To extract full value from
DERs, we need:
•Access to trusted data
•Multiple stakeholder
groups to agree and act
upon that data
57. 57
Need 1: access to trusted data
•We need to know you
(customer or device) are who
you say you are. Do you have
the attributes you claim to
have?
•In this way, you can be
included / excluded from
market participation
Intrinsic data
•We need to enforce terms
and prevent “double
counting” across services
•We need to agree who can
/ can’t access data and/or
control behavior
Relational data
•We need to know offers are
“real” (coming from the
right devices)
•We need to efficiently
reconcile M&V data
•We need a shared state of
current & planned behavior
Operational data
58. Need 2: multiple stakeholder groups need access
58
• Backup Power
• Demand Charge
Management
• Congestion Relief
• Voltage Support
• Distribution Deferral
• Frequency Regulation
• Energy Arbitrage
• Reserve Capacity
Customer
Installer
OEM
Utility
Aggregator
ISO/RTO
Regulator
59. 59
• Backup Power
• Demand Charge
Management
• Congestion Relief
• Voltage Support
• Distribution Deferral
• Frequency Regulation
• Energy Arbitrage
• Reserve Capacity
Customer
Installer
OEM
Utility
Aggregator
ISO/RTO
Regulator
Intrinsic Data
Relational Data
Operational Data
DER “Passport”
Need 2: multiple stakeholder groups need access
60. We are building this capability with the EWF ecosystem
60
•Establishes digital identities
(e.g., for installers,
customers)
•Creates a trustless, shared
state of identities and
relationships between them
EW User and Asset
Registry Enables digital identities to:
•Settle payments at the
device level
•Automatically conduct
EM&V
•Post value (e.g., tokens) in
escrow
•Engage in complex
transactions
EW Flex
Intrinsic Data
Relational Data
Operational Data
DER “Passport”
62. 62
Big technology and architecture questions
•Tech can support today’s
applications
•What about tomorrow’s?
Horizontal scaling &
interoperability
•In a decentralized world,
end users are in charge of
their data
•Will market participants
embrace or resist this
architecture?
Data ownership
•Many different approaches
to maintaining privacy on
blockchains
Privacy preservation
63. 63
By next year’s forum:
~5 minimum viable products leveraging public blockchains will be in the
market
Blockchain increasingly distinguished from P2P & transactive energy
“Why blockchain?” fades
“Private v. Public” evolves into “What privacy features are available?”
65. Questions? Enter them at gtm.cnf.io #gtm
Mohit
Anand
Blockchain Adoption
& Cleantech
Independent Consultant
Panel: Strategizing Blockchain Adoption and Scalability:
Utility Perspectives on Moving from Proof of Concept to Pilot
M
Ben
Kellison
Wood Mackenzie
Power & Renewables
Director, Grid Research
Colleen
Metelitsa
Con Edison
Evaluation Manager,
Energy Efficiency &
Demand Management
CK
Umachi
PG&E
Expert Product Manager,
Blockchain
Alex
Rojas
Ameren
Director, Distributed
Technologies
66. Questions? Enter them at gtm.cnf.io #gtm
Francesco
Menonna
Wood Mackenzie
Power &Renewables
Research Analyst, Grid Edge
Abhinav
Tiwari
Alectra Utilities
Head of AdvancedPlanning
Case Study: Blockchain as the Foundation
of Alectra’s Grid Exchange Transactive
Energy Platform
M
68. 68
Who is Alectra?
Alectra is an energy company that
distributes electricity and provides
innovative energy solutions to
customers in Ontario
Second largest municipally-owned
integrated energy solutions
company in North America
Over C$4.5 billion in assets
and 1,500 employees
Serving over 1 million
customers across 1,921 sq
kms
Two subsidiaries:
• Alectra Utilities: responsible for distributing electricity to residents and businesses
• Alectra Energy Solutions and Services: provides innovative energy solutions, such as microgrids, energy storage,
solar PV, metering, and street lighting
69. 69
Green Energy and Technology (GRE&T) Centre
GRE&T Centre makes energy innovations come to life by identifying, evaluating, developing and deploying
emerging, green, and customer-friendly energy solutions across Alectra's service territory
Our core values
Safety Respect Customer Focus Excellence Innovation
focus on
emerging
technologies
Artificial Intelligence Blockchain Data Analytics Cloud Computing Robotics Process
Automation
preparing for
Energy
Solutions of
tomorrow
Advanced Planning Smart Cities Grid Innovation
Energy Technology
Accelerator
70. 70
How the current landscape is changing
The electrical market is being transformed by many forces which requires a change in the way we operate today
Driving Forces coupled
with
Emergence of DERs requires a change in the way grid
is operated
Shift to Renewable Energy
Sources
• Address Climate
Change
• Changes in
consumption driven by
consumer electronics
• Electrification of
Transportation
• Increased engagement
of Customer ratepayers
+
DER Global Capacity: 132GW in 2017
and is expected to grow to 528GW by
2026
• Electric Vehicles: Half the cars sold in
2030 are expected to be electric
• Distributed Generation (largely Solar):
Cost is 1/5th to that in 2010, further
expected to drop by over 2/3rd by 2030
• Smart Thermostats: Customers
actively managing their energy usage
• Distributed Storage: Cost is 1/5th to
that in 2009, further expected to drop
by another 2/3rd by 2030
Transmission System
Operators
Distribution Network
Operators
Regulators /
Policy Makers
71. 71
DERs – Benefits & Challenges
Challenges are largely driven by behind-the-meter DER installations not controlled by Utilities
Benefits to Consumers Challenges New ways to finding a potential
solution
Self-generation, local storage
and local resiliency
Cost-savings and energy
efficiency
Convenience and automation
Environmental and social
benefits
DERs, when not properly controlled such as in the case of
behind-the-meter installations, could bring unintended
negative impacts on grid stability
EVs, especially due to its clustered density and coincidental EV
charging places enormous strain on the grid, brings a high
likelihood of causing grid congestion and reduces the overall
life of distribution system assets
Excess volumes of solar generation are beginning to create
overvoltage conditions that generate excessive heat and
threaten the stability of distribution infrastructure
Consumers are expecting more active engagement with their
utility over traditional one-way ratepayer/energy supplier
relationship
Traditional strategy to build more
infrastructure is discouraged by
regulators and policymakers to:
• lower environmental impact and
• ratepayer’s reticence to paying
higher electrical bills
72. 72
GridExchange Platform
Alectra’s approach for Transactive Energy Platform
Secondary
Participants
Payments Provider
Contract
Counterparty
Residential
Customer
Bill Payees
Merchants
Platform Operator
Contract
Counterparty
Control Agent
Metering Agent
Settlement
Provider
Exchange
Provider
Market
Operator
Primary Participants
A software platform to facilitate a
wholesale ⟷ distribution ⟷ end
user marketplace for energy
products, including contracting,
delivery, and settlement, based on
enterprise blockchain technology
Blockchain based transaction
management enables smart
procurement, contracting,
verification and settlement of
services for different participants
and stakeholders
73. 73
GridExchange Services
In the pilot phase, GridExchange will enable three major market services
Reduce load on transformers serving
residential customers by limiting
the rate of charge for electric
vehicle charging stations according
to user tolerance and propensity to
earn rewards
Managed
EV Charging
During times in which the energy
supply from large-scale generation
within a jurisdiction has a greater
proportional dependence on fossil-
fuel burning sources, encourage
households to prioritize usage of
solar to meet residential load
requirements (even if not
traditionally economically optimal)
CO2
Reduction
Allow homeowners to leverage
battery storage capacity to
participate in scheduled demand-
response programs
Demand
Response
74. 74
Data Analytics & Governance at its core
GridExchange is backed by robust Data Management and Governance services to enable Advanced Analytics
while keeping it’s commitment to Data Security and Customer Privacy
Consumers/Users
Analytical / Data
Mining
Data Extracts
Ad-Hoc Analysis
Apps
Visualizations
Service
Interface
Layer
Data Storage & Warehousing
Physical Data Storage
Off-chain DB & Analytical Storage
Data Warehouse Domain Centric Datasets
Advanced Analytics
Data Discovery / Mining
Analytics
Workflows
Reusable
Components
DA Tools
Deep Learning
Statistical
Learning
Machine
Learning
Data Ingestion & Processing
Data Ingestion
Transformation
Data / Metadata
Batch & Ad-Hoc
ETL & Parsing
Data Quality
Metadata Ingestion
Platform Governance and Security
Data &
Metadata
Catalog
BI / Reporting
Streaming
Remodelling
API
Services
75. 75
GridExchange benefits
For End-User and Contract Counterparties
End-Users Improved resilience and reliability towards outages
Cost savings due to their energy contributions to the grid
Better control over their energy assets providing a better sense of ownership over their assets
Ability to make more informed decisions regarding energy contributions based on aggregated & localized recommendations
Earn rewards to obtain value-added services with respect to the positive change in their behavior for energy contribution
Increased transparency by having access to information about their energy consumption/generation (renewables vs fossil)
Become a contributor towards the global initiatives around reducing GHG and carbon footprint
Contract Counterparties Improving customer trust by providing customers full transparency & control over their energy assets, contribution, helping optimize
their energy participation and cost benefits
Reducing overall cost for entire customer base towards their energy consumption
Obtaining benefits around deferring capital and operating expenditures associated with infrastructure upgrades, planning, and grid
resource balancing
Improved visibility towards the changing market and DER penetration to better inform network planning decisions
Empowering customers by enabling them to participate in larger energy demand response needs. Further, empowering them to become
part of larger global initiatives towards reducing GHG and Carbon footprint
76. 76
Market Operators Increased visibility over the network to help achieve improved decision making towards immediate demand response requirements.
Ability to gain a view into the DER landscape in the region that was not previously available
Improved decision making towards longer-term energy needs resulting in infrastructure upgrades due to overall improved visibility.
Further helps in infrastructure upgrade deferral in cases of significant increase in DER penetration
Ability to optimize the energy supply and gain access to cost effective demand response capacity in the wholesale market by
leveraging aggregated DERs
DERMs/ADMS
technology providers
&
Corporate partners
Opportunity to integrate to a larger ecosystem of multiple utilities and technology partners
Opportunity to increase their customer base and increase revenues by participating in new markets and gain access to industry
analytics which will improve the efficiency of their planning and targeting. As a result, they will have greater opportunities to
generate new value propositions and be much more agile in responding to market needs
Ability to improve their platform, models and overall technology through access to cross-functional data and learnings
Corporate Partners specifically will have an additional benefits to band value augmentation through association with efficient energy.
They will get low cost access to customers of their products
GridExchange benefits
For Market Operators, Technology Providers and Corporate Partners
77. 77
Key factors to success
There are many different external factors which could impact the success of Transactive Energy market
DER growth accelerates and continues
Incentives for utilities to use non-wire alternatives become compelling and common
Regulatory changes increasingly allowing the utilities to control customer owned DERs
DER aggregators and ADMS/SCADA vendors align to interoperable interface standards
Utilities can enroll DER owners onto the network quickly and easily
Corporate and financial partners keep supporting the development of the ecosystem
New use-cases emerge to improve stakeholder buy-in and customer trust
79. Questions? Enter them at gtm.cnf.io #gtm
Energy Blockchain Startup
Perspectives: Swytch
Evan Caron
Swytch
CEO & Co-Founder
Elta
Kolo, Ph.D.
Wood Mackenzie
Power & Renewables
Research Manager, Grid EdgeM
80.
81. 81
TEAM
Eric
MILLER
Senior Architect/Former Head of
Engineering, United Health
Group
Evan
CARON
Senior Director, TrailStone
Senior Director, Deutsche Bank
Board Member, Mp2 Energy
Troy
MARTIN
COO, TrailStone
COO, Deutsche Bank Global
Commodities
COO, Merrill Lynch Commodities
(Europe)
Luke
FILIPOS
Owner/CEO, Austin Coding
Academy
CTO
CPOCOO
CEO
82. 82
THE CHALLENGE:
GLOBAL SHIFTS IN THE 21st CENTURY
OUTDATED MARKETS
As technology outpaces policy, energy
transaction and settlement processes designed
decades ago are no longer sufficient.
UNDERDEVELOPED SYSTEMS
Measuring everything means more data than
ever before and our ability to intelligently
process and use that data is underdeveloped.
FRAGMENTED JURISDICTIONS
Even though the world is generally unified
around the goal of sustainability, accounting
and enforcement standards are fragmented.
SMARTER REGULATION
Municipal and international
sustainability mandates increasingly
define future business goals.
SMARTER CONSUMERS
Consumers demand more sustainable
business practices as well as proof that
these practices actually work.
BETTER TECHNOLOGY
The proliferation of IoT and renewable
technology means a sustainable world
where we can measure everything.
83. 83
CONNECTED
METER GROWTH
• 800M internet connected smart
meters
• 80M in the US markets alone,
growing to 120M by 2021
• Globally: 1.2B by 2021 and beyond
250
800
900
1200
1500
35
80 100
120 150 185
0
500
1000
1500
2000
2500
2016 2018 2020 2022 2024 2026
IoT Device Proliferation
(Millions of devices)
Global US
Source: Forrester
84. 84
TOOLS FOR A
SUSTAINABLE FUTURE
swytchX is an ecosystem of products
designed to solve the problems that
come with the global transition to
renewables.
Digital
RECs
Carbon
calculations
Sustainability
linked bonds
Source
tracking
Predictive
modeling
Ene
ori
We work with:
• Energy providers
• Equipment manufacturers
• Financial institutions
• Real estate portfolio managers
• Distributed energy resource managers
• Enterprises with sustainability goals
85. 85
1. Connect
2. Stream
3. Enrich
4. Analyze
5. Deliver
1
2
3
4
5
HOW IT WORKS
The swytchX data pipeline is the foundation for
all swytchX products. Connecting your devices to
this streaming service allows your organization to
unlock new levels of efficiency and value for data
auditing, analysis and applications.
86. 86
3. ENRICH
Metadata points for the exact
time and location of each
energy reading are added to
the data bundles.
Relevant metadata points
include weather data, grid
emission factors and more,
with new ones added regularly.
1. CONNECT
swytchX creates a non-invasive
connection to your device and
listens for energy readings.
None of your current business
processes need to change and
once the first device is
connected, onboarding more in
the future is effortless.
4. ANALYZE
swytchX data bundles stay
within the swytchX ecosystem
and are available to be audited
and analyzed at any time.
Depending on your chosen
services, these analyses are
added to each data bundle and
prepared for delivery.
2. STREAM
Once connected, swytchX
receives energy readings as
frequently as your device emits
and bundles them together
each hour.
Every reading is digitally
signed, creating a secure audit
trail for future validation.
5. DELIVER
After processing, each data
bundle is packaged into a
swytchX “attribution” and
delivered to a desired wallet.
These attributions are
individually tradable and
transactable assets that can be
bundled as RECs, audited for
source tracking and more.
HOW IT WORKS
87. 87
swytchX Carbon
Time-and-location-specific carbon
impact calculations can be
generated from any device that
gives off an energy reading.
swytchX Monitor
View your organization’s entire
energy portfolio and understand its
impact in one place.
swytchX Source
swytchX automatically creates a
digital audit trail for all energy
readings that is secured using
blockchain technology.
swytchX Transactions
swytchX automates the REC
generation process from
renewable devices and creates
tradable digital assets each hour.
swytchX Analytics
swytchX houses calculation nodes
that can run analytics models
against the entire data layer.
swytchX Dev
The swytchX ecosystem is wrapped
in a REST API that can be leveraged
for third party applications.
CORE
CORE
ADVANCED ADVANCED
CARBON
CARBON
SOLUTIONS
88. 88
BLOCKCHAIN:
ENERGY AUDIT TRAIL
HOW:
swytchX creates digital signatures for every energy transaction and anchors
them to a blockchain, allowing for public or private verification.
WHY:
Creating a global accountability standard for energy data creates a more
efficient and trusted environment for energy economics.
WHAT:
A transparent and immutable system leveraging blockchain technology for
verifying energy transactions.
89. 89
HOW:
Aggregating hourly energy data in 1MWh bundles and tokenizing those
bundles on the blockchain.
WHY:
Creating a global accountability standard for energy data creates a more
efficient and trusted environment for energy economics.
WHY:
A unified and common standard on blockchain creates more trust, more efficiency,
more liquidity, more profit and ultimately more sustainability in the marketplace.
WHAT:
A high resolution bundle of auditable energy data and carbon calculations that are
tokenized on the blockchain allowing them to be owned, traded and retired.
BLOCKCHAIN:
DIGITAL RECs + CARBON CREDITS
90. 90
CASE STUDY:
MONITOR
+ ORIGIN
A retail energy supplier is selling green energy
supply contracts sourced from location specific
renewable energy purchases as well as RECs.
Use cases:
• swytchX Monitor creates a unified
view of their energy footprint across
devices.
• swytchX Origin delivers certifiable
proof to their customers that their
energy came from a renewable
source and has not yet been retired.
91. 91
CASE STUDY:
CARBON
+ TRANSACTIONS
A real estate portfolio owner with locations
across the united states is contracting rooftop
PV as a means of reaching a goal of 100%
renewable energy by 2020.
Use cases:
• swytchX Carbon automatically calculates
the carbon offset for each device every 5
minutes.
• swytchX Transactions automates the REC
generation process, delivering tradable
RECs into their wallet every hour instead of
every 2 months.
92. 92
CASE STUDY:
ANALYTICS
+ DEVELOPER
New regulation in New York City mandates that buildings
must make meaningful progress towards becoming “net
zero” carbon emissions each year or face substantial fines.
A flagship office building with over 1.2 million sq ft of
space is looking to calculate a baseline for its carbon
output and optimize building operations for improvements.
Use cases:
• swytchX Analytics is being loaded with the business
logic for local regulation to analyze whether or not
baseline improvements are being made.
• swytchX Developer allows the client’s own
development team to build applications using
swytchX’s data layer and build internal applications.
95. Questions? Enter them at gtm.cnf.io #gtm
Case Study: How ComEd is Implementing
Blockchain to Enhance DER User
Security and Verification
Fei
Wang
Wood Mackenzie
Power & Renewables
Senior Analyst, Grid Edge
Nayeem
Abdullah
Com Ed
Principal Project Manager
– Emerging Technologies,
Smart Grid & InnovationM
96. Questions? Enter them at gtm.cnf.io #gtm
Fireside Chat with LO3 Energy
Scott
Clavenna
Greentech Media
Chairman
Lawrence
Orsini
LO3 Energy
Founder & Principal
M
97. Questions? Enter them at gtm.cnf.io #gtm
Energy Blockchain Startup Perspectives: VIA
Kate
Ravanis
VIA
Chief Operating Officer
Ben
Kellison
Wood Mackenzie
Power & Renewables
Director, Grid ResearchM
98. Solve With VIA
Improved Grid Reliability Through
Collaborative, Privacy Preserving Analytics
109. Questions? Enter them at gtm.cnf.io #gtm
Multi-Stakeholder Presentation: Blockchain as an Integration
Platform for EVs, Solar DERs and Wholesale Prices
M
Elta
Kolo, Ph.D.
Wood Mackenzie
Power & Renewables
Research Manager, GridEdge
Killian
Tobin
Omega Grid
CEO
Juliette
Chatel
EDF Innovation Lab
Smart GridAnalyst
Denver
Hinds
SMUD
R&D Project Manager,
Smart Energy Technologies
152. Page 2Restricted to EDF Group
WHY EXPLORE LOCAL ENERGY MARKETS NOW?
▪ Strong push for Distributed Energy Resources (DER): distributed PV,
distributed storage, Electric Vehicles.
▪ Those DER make economic sense today, only due to large incentives.
▪ As incentives are expected to decrease, there is a need for unlocking
the full value of those resources for the overall electricity system.
▪ But, only limited access to markets for small capacity DER today.
▪ And, existing DER programs rely on very long cycles of design and
pricing which tend be less aligned with the actual cost/benefits.
▪ And, local value is absent in current pricing.
Market
Short term
Local
Need for understanding those emerging concept now
TOMORROW…
TODAY…
153. Page 3Restricted to EDF Group
EDF is already interested in BC technology and several use cases have been identified and are being tested.
EDF PILOT OBJECTIVES IN TESTING BLOCKCHAIN
Local Energy Market will create numerous small
transactions: is BC a cost-efficient technology for
this use-case?
▪ If yes, how does it work?
• How Smart contracts are related to BC
and how can it be designed?
• Which data are needed to run a BC
marketplace?
• How does it articulated with the utility
legacy systems?
• What is the role of the utility in the BC
process?...
Assess the technical feasibility and integration requirements to best leverage blockchain technology.
7 Blockchain use-cases identified
Page 3Restricted to EDF Group
EDF is already interested in BC technology and several use cases have been identified and are being tested.
EDF PILOT OBJECTIVES IN TESTING BLOCKCHAIN
Local Energy Market will create numerous small
transactions: is BC a cost-efficient technology for
this use-case?
▪ If yes, how does it work?
• How Smart contracts are related to BC
and how can it be designed?
• Which data are needed to run a BC
marketplace?
• How does it articulated with the utility
legacy systems?
• What is the role of the utility in the BC
process?...
Assess the technical feasibility and integration requirements to best leverage blockchain technology.
7 Blockchain use-cases identified
156. DECENTRALI ZED DI SPATCH
VS CENTRALI ZED
PRO CON
Decentralized Dispatch
• Lower Computational Requirements
• Respects Utility Territorial
Boundaries
• Flexible Topology Increases
Resilience
Traditional Dispatch
• Built for Large Generators
• Requires High Speed
Communication
• Bottlenecks/Central point
of Failure
157. Total memory usage by the root node in the scaling tests ranged from 30Mb to70Mb
Platform 1: Platform: Raspberry PI 3 Model B, Rev 1.2. Quadcore 1.2 Ghz processor (ARM Cortex A53) with 1GB of RAM
Platform 2: Ubuntu 18.04 Linux running in a VMWare VM. Allocated 1GB of RAM. Running on a Window 10 Pro laptop with 16 GB of RAM,
and an Intel i5-8400 CPU @ 2.5Ghz (6 core processor)
Private Blockchain
Hardware Average block
size
Blockchain time Bandwidth Max
transactions
/second
Max nodes
(in 5-min
market)
Raspberry PI 61.9 Kb 0.0031 seconds 0.36 Mbps 750 112,000
Linux VM on PC 61.9 Kb 0.0029 seconds 0.36 Mbps 8160 1,124,000
OG Blockchain performance with 10,000 nodes
158. Burlington Electric Department
Demand Response Pilot
• 15 customers (4 C&I , 11 Res)
• $2,000 over 6-cold weather
months
• Transaction Cost on Public
Blockchain: <$0.001
159. BLOCKCHAI N SETTLEM ENTS
PRO CON
Digital Assets
• Remittances
• Low cost transactions
• Low barrier to entry
• Automatically executing
• 1MM transactions/$
Bank & Credit Cards
• Prefer larger transactions
• 30+ day settlements
• 10 transactions/$
160. The future will arrive
exponentially quicker
than you think.
The time to act is now.
The time to act is now.
Contact: Killian Tobin, CEO
killian@omegagrid.com
773.294.4606
http://omegagrid.com
161.
162.
163. Questions? Enter them at gtm.cnf.io #gtm
Case Study: How BMW is Utilizing Blockchain to Create
Carbon Credits for EV Drivers
M
Sean
Batir
BMW
Machine Learning Engineer
Henry
Pease
BMW
Research &
Development Engineer
Kelly
McCoy
Wood Mackenzie
Power & Renewables
Research Associate, GridEdge
164. UTILIZING BLOCKCHAIN TO CREATE CARBON CREDITS
FOR EV DRIVERS
CASE STUDY
FG – AM – 7 | 24 September 2019
Sean Batir and Henry Pease
167. Page 167GTM Conference | Batir and Pease | 25 September 2019
LCFS OVERVIEW
The California LCFS program seeks to reduce the carbon intensity of transportation fuels by 20 percent by 2030.
There are two categories of regulated parties
• Opt In: Suppliers of low carbon transportation fuels, like biofuel refiners, electricity and natural gas suppliers
• Mandatory : Petroleum fuel producers within California (refiners) or importers of a refined petroleum product
Carbon intensity is technology neutral and based on:
• Full lifecycle including direct and indirect emissions
• Tailpipe + production + distribution + land use change
Carbon Credit
marketplace
Credit generation
from electric vehicle
168. Page 168GTM Conference | Batir and Pease | 25 September 2019
CALIFORNIA LOW CARBON FUEL STANDARD PROGRAM
Gasoline Fuel
Emissions
ARB Emissions Threshold (CO2 /MJ)
Electric utilities generate LCFS credits for every
kWh of electric fuel they dispense to electric
vehicles, in an amount equal to the difference
between the ARB emissions threshold
Grid Electricity
Average
Emissions
Oil Refineries are responsible for
purchasing credits equal to the amount
they exceed the ARB emissions limit
Smart
Charging
Renewable
Energy Credit
Matching
California Grid Average Emissions (CO2/MJ)
170. Page 170GTM Conference | Batir and Pease | 25 September 2019
BENEFITS OF BLOCKCHAIN
Credit generation
Blockchain simplifies credit generation, validation, and marketplace verification through a decentralized ledger
Validation Marketplace
• Track all charging sessions in an
immutable ledger
• Calculate LCFS credits automatically
through smart contracts
• Incorporate multiple vehicles across a
fleet with a decentralized
infrastructure
• Provision of audit trails is inherent to
blockchain ledger architecture
• Validate credits for a wide array of
stakeholders
• Reduce manual verification steps
through digital settlement process
• Aggregate buyers and sellers without
intermediaries
• Permit smaller players to participate
in ecosystem
171. Page 171GTM Conference | Batir and Pease | 25 September 2019
04
HOW THE SMART CONTRACT WORKS
172. Page 172GTM Conference | Batir and Pease | 25 September 2019
APPLICATIONS OF LCFS BLOCKCHAIN
A variety of solutions exist in credit generation and marketplace use cases
Automated calculations of LCFS credits for
Metered data
Data from various inputs include telematics, meter,
Inverter, RECs, etc.
Charge events tied to unique IDs
without exposing PII data
Auditability features for CARB
Facilitate transactions of LCFS credits between
buyers and sellers
Counterparties transact without intermediaries
Entities can aggregate counterparties
at larger volume
Contracts are digitized, providing a virtual footprint
versus paper trails and email attachments
Carbon Generation Carbon Generation
173. Page 173GTM Conference | Batir and Pease | 25 September 2019
HANDLING DISPUTES
Smart contracts handle conditional logic and permit state changes
Make contract
Credits go in
Transaction
contract enter
challenge
period
Contract in
Dispute State
Credits
released
Buyer
give
credits
Seller
receive
creditsAgreement
recorded //
Seller ignores
Buyer agrees to
contract
Seller disputes
sent payment
CARB resolves
CARB resolves
Seller resolves dispute
174. Page 174GTM Conference | Batir and Pease | 25 September 2019
CALCULATING CARBON CREDITS
Carbon emission and credit calculation transparency improve audit efficiency
Seller
receive
credits
Simplicity is key, complexity a myth
• Aggregate ”Most Important Variables”
in a Request structure
• vehicle telematics ( kiloWatts /
Hour)
Store LCFS credit calculation inputs to
promote radical transparency
• Simplifies audit trail
• Minimizes uncertainty about how final
LCFS credit was computed
• Calculation is publicly available
176. Page 176GTM Conference | Batir and Pease | 25 September 2019
LESSONS LEARNED
There is potential for blockchain systems to accelerate renewable energy initiatives
You need a growth mindset for your company to succeed in
blockchain adoption. Web3 development skills are rare, in
demand, and different from traditional web development
roles.
Train
Must be mindful to engineer custom solutions, in order to
adapt abstract blockchain solutions for concrete, government
sponsored green programs
Placeholder
• Placeholder sub
• Placeholder sub.
177. Questions? Enter them at gtm.cnf.io #gtm
Panel: A Whole New Level of Transparency: The Impact of
Blockchain on Renewable Energy Credit Tracking & Green Financing
M
Skylar D.
Hurwitz
Jelurida
Capacity Building Consultant
Kelly
McCoy
Wood Mackenzie
Power & Renewables
Research Associate, GridEdge
Andrew
Bruce
Data Gumbo
CEO
Bernhard
Schiessl
CICERO
Advisor, Climate Finance
178. Questions? Enter them at gtm.cnf.io #gtm
Closing Remarks
Scott Clavenna
Greentech Media
Chairman
M