Can the blockchain help accelerate the energy transition in France and in Europe

Master 2 Digital Marketing 2016

Executive summary 3
Introduction 5
1. THE TRANSITION TO A LOW CARBON/NUKE ECONOMY IN EUROPE AND IN
FRANCE 7
The energy market is rapidly evolving due to the development of renewable
energies 7
2. WHAT IS BLOCKCHAIN TECHNOLOGY? 10
2.1 Définition 10
2.2 How does a blockchain work? 11
2.3 How the blockchain works in detail? 14
The proof-of-work and proof-of-stake concepts 15
What are tokens? 16
Smart contracts 17
3. HOW COULD BLOCKCHAIN HELP OUR COUNTRIES TRANSITION TO A
LOW-CARBON/LOWER NUCLEAR-POWERED ECONOMY? 17
3.1 Blockchain could facilitate the adoption (hence the development) of renewable
energies 17
Encouraging prosumers to adopt and invest in renewable energies at home 18
Reducing frictions attached to current political incentives to the renewable
energies 21
Helping Distribution system operators manage the smart grid... 22
3.2 Blockchain could help the transport industry migrating from fossil fuels to
electricity 26
Facilitating charging of Electric vehicles: slock.it project 26
3.3 Blockchain could help reduce the energy consumption 27
4. What are the risks about the blockchain today? 28
4.1 High energy intensity required by the verification process 28
4.2 Security risks 29
4.3 Impact on the energy bill for the consumer 29
4.4 Regulatory limitations 30
5. Conclusion 30
6. Annexes 33
Nom Vincent Poizat 1/41
Mémoire Master 2 - Digital Marketing 2016

Annex 1: Ordonnance n° 2016-1019 du 27 juillet 2016 relative à
l’autoconsommation d’électricité 33
Annex 2: The proof-of-concept method 36
Sources 38
Thanks 40

Executive summary
Renewable energies gain an increasing market share of the energy market in Europe
and in France. This is mostly due to 2 factors:
- a political decision to decarbonise the economy in order to fight against
climate change. This decision was reinforced by the Paris agreement in 2015
during the COP21
- a sharp decrease of the production cost for the 2 major sources of renewable
energy: wind and solar-energy.
This has strong consequences on the energy market.
First this has led to the development of small, local producers and the emergence of
the so-called prosumers: a productor that self-consume partially or totally his
production. This is typically the 6 kwc installation of solar panels on the roof of an
individual housing.
This multitude of small-size productors leads to an increasing decentralisation of an
energy market that was mostly organised along big central sources of power. This is
especially true in France where 58 nuclear power plants produce 75% of the total
electrical production.
At the same time the blockchain technology has matured from a crypto-currency only
(i. the bitcoin) to a technology that could possibly enter other markets. Don Tapscott
summarizes the blockchain technology, as the biggest innovation in computer
science—the idea of a distributed database where trust is established through mass
collaboration and clever code rather than through a powerful institution that does the
authentication and the settlement.
With the introduction of smart contract by the Ethereum blockchain, self-enforcing
contracts on the blockchain could provide an auditable, non-repudiable and
cryptographically secure history of automated transactions, therefore possibly
rendering other services than simply exchanging money.
Many have compared the blockchain to internet. For Joiichi Ito, the blockchain “works
the opposite to internet. It makes information looks like a thing. It creates the scarcity
you could not do on the internet.”
Joiichi Ito considers that the energy market fits particularly well with the blockchain
technology.
“Energy is the only other thing that has scarcity and goes over a wire. There is a one
to one match between energy and blockchain. If I share my music with you over the
internet I still have it. Once I give you my energy over the blockchain I don’t have it
anymore.”

The blockchain technology is still in its early stages and there are numerous
uncertainties about its full acceptance in the market: transaction costs attached to the
blockchain, security risks and regulatory hurdles.
Should these issues be lifted, the blockchain could help the energy transition from a
carbon-rich, centralised system to a decentralised and then distributed energy
system based primarily on renewable energies. It could first facilitate the adoption of
renewable energies by local prosumers by facilitating local transactions of small
value, reducing frictions attached with political intrusion into the market or by
facilitating charging of electric vehicles.
Balancing supply and demand is also a challenge met by smart grids and one which
could be addressed by the blockchain.
Finally and perhaps more importantly the blockchain could help people manage their
own energy consumption which they hardly do now, lifting the ultimate barrier to
massive energy savings, a key to a successful energy transition.

Introduction
“The European Union turned climate ambition into climate action. The Paris
Agreement is the first of its kind and it would not have been possible were it not for
the European Union. Today we continued to show leadership and prove that,
together, the European Union can deliver. “
Jean-Claude Juncker, on the EU ratification of the Paris Agreement, 4 October
2016
On 4 october 2016, the European union ratified the Paris Agreement of the COP21
that set ambitious environmental goals for the world countries in order to remain
under the threshold of +2% for global warming.
To be effective the Paris Agreement required that 55 countries ratified it representing
more than 55% of the total amount of the global greenhouse gas emissions. The EU
ratification took us across the emissions threshold, triggering the Paris agreement.
The EU has set ambitious goals for greenhouse gas reductions: -40% in 2030
(compared to 1990) and -80% by 2050. One key factor to meet this target is by
developing low-carbon renewable energies like windmill and solar energy.
Besides its climate upside, clean energy is seen by the EU as the growth of
tomorrow.
In France the law for the energy transition and the green economy (Loi pour la
transition énergétique et la croissance verte) voted in 2015 set ambitious goals for
the development of renewable energies and forecast to reduce significantly the share
of nuclear power in the electricity production by 2030.
The development of renewable energies will have tremendous implications on the
energy market. The single most important one is a massive decentralisation of

energy production … and consumption. A new economic actor has indeed appeared
that will take a growing space in the energy market: the prosumer of energy, an
economic actor that both produces and consumes energy.
In this context the concept of blockchain has emerged recently and is gathering a
considerable amount of interest from both researchers and corporations.
The blockchain has evolved from its origin as a crypto-currency and some
researchers have lately come to discuss that it may be a mature technology ready to
enter the energy field and possibly disrupt it .. for the better.
Today blockchain technologies could:
- help increase the adoption of renewable energies in the building and the transport
industry.
- help manage the smart grids which will be necessarily built in order to manage the
input of renewable energy supply.
- help reduce the energy consumption
Finally we shall review the limits existing today to a full scale deployment of the
blockchain technologies in the energy market:
- regulatory barriers
- consumer acceptance to such a decentralised way of managing energy
- Energy intensity required by the consensus protocol
- Impact on the energy bill for the consumer

1. THE TRANSITION TO A LOW
CARBON/NUKE ECONOMY IN EUROPE
AND IN FRANCE
In October 2014 the European Council agreed on the 2030 climate and energy policy
framework for the EU setting an ambitious economy-wide domestic target of at least
40% greenhouse gas emission reduction for 2030. The Paris Agreement in 2015
vindicates the EU's approach. Implementing the 2030 energy and climate framework
as agreed by the European Council is a priority in follow up to the Paris Agreement.
The European Union is aiming for an 80 % reduction in greenhouse gases by 2050
compared with 1990 levels and while renewable technologies will play a vital role in
achieving this, they will also require a major overhaul of how energy is distributed.
One way to reduce greenhouse gas emissions such as CO2 is to replace coal and
gas-fuelled power with energy from renewable sources such as the wind and
the sun.
In France the law for the energy transition and the green growth was voted in 2015. It
set 5 ambitious goals:
- Reduce the final energy consumption in France by 20% between 2012 and
2030 and by 50% in 2050.
- Reduce the emissions of greenhouse gas by 40% in 2030 (compared with
1990) and by 75% in 2050.
- Reduce the share of nuclear power in the electricity production from 74%
of total electric power in 2012 to 50% in 2025
- Reduce the total consumption of fossil energies by 30% between 2012
and 2030
- Increase the share of renewable energies in the final energy
consumption from 14% in 2012 to 32% in 2030.
The energy market is rapidly evolving due to the
development of renewable energies
In a conference given in February 2016 at MIT, Scott Clavena, CEO of Greentech
media, shows how the energy market is rapidly evolving from a centralised structure:

Source: EPRI
To an increasingly decentralised & distributed energy network:
Source: EPRI

One of the key concept that appears in the new energy market is the notion of
prosumers. Office buildings, private homes are increasingly becoming energy
producers thanks to the reducing costs of solar and windmill energy.
Cost of energies Source: Bloomberg
Finally let us examine how this new energy production/distribution model would
translate at the individual place of a home-owner.
Source: GTM research

It appears on these graphics that what causes the energy market to evolve
dramatically is the development of renewable energies adding capacities on a very
decentralised manner.
The energy transition is not only a matter of switching energy sources from
fossil/nuclear to renewables, it transforms the market from a centralised one with
producers on one side and consumers on the other to a decentralised one where
energy consumers could increasingly be energy producers.
Already, in Belgium, somewhere between 8 % and 12 % of households have become
prosumers, says Dr Mihail Mihaylov at the AI lab of the Vrije Universiteit Brussel
(VUB).
What would happen if these numbers of prosumers increased, including the scenario
whereby 50 % of households became prosumers, i.e energy producers and
consumers at the same time. Under the current system a lot of green energy would
be wasted.
2. WHAT IS BLOCKCHAIN
TECHNOLOGY?
2.1 Définition
Blockchain is a technology that enables so-called “peer-to-peer” transactions. With
this type of transaction, every participant in a network can transact directly with every
other network participant without involving a third-party intermediary.
The blockchain innovation is that transactions are no longer stored in a central
database, but distributed to all participating computers, which store the data locally.
The first relevant blockchain application was Bitcoin, a so-called “cryptocurrency”.
Over recent years, Bitcoin has become the basis for other blockchain applications,
most of which are currently being developed in finance. A number of businesses and
initiatives have recently been launched that apply the blockchain principle.
Essentially, a blockchain is a digital contract permitting an individual party to conduct
and bill a transaction (e.g. a sale of electricity) directly (peer-to-peer) with another
party. The peer-to-peer concept means that all transactions are stored on a network
of computers consisting of the computers of the provider and customer participating
in a transaction, as well as of the computers of many other network participants.

Traditional intermediaries, e.g. a bank, are no longer required under this model, as
the other participants in the network act as witnesses to each transaction carried out
between a provider and a customer, and as such can afterwards also provide
confirmation of the details of a transaction, because all relevant information is
distributed to the network and stored locally.
How blockchains change the way we transact
Source: Blockchain – an opportunity for energy producers and consumers? PWC
2.2 How does a blockchain work?
Where a provider and a customer agree to enter into a transaction, they determine
the variables of this transaction by specifying the recipient, the sender and the size of
the transaction, among other things. All information relating to an individual
transaction is then combined with the details of other transactions made during the
same period to create a new block of data. This is comparable to sending emails,

which are also split into separate data blocks. Blockchains are different in that this
process relates to a single standardised transaction.
The blockchain process
Each transaction is encrypted and distributed to many individual computers
(peer-to-peer), each of which stores the data locally. The members of the network
automatically confirm (verify) the transactions stored on the individual computers.

Source: https://theconversation.com/how-blockchain-will-transform-our-cities-69561
The data stored in a block is verified using algorithms, which attach a unique hash (1)
to each block. Each such hash is a series of numbers and letters created on the
basis of the information stored in the relevant data block. If any piece of information
relating to any transaction is subsequently changed as a result of tampering or due to
transmission errors, e.g. the exact amount of the transaction, the algorithm run on the
changed block will no longer produce the correct hash and will therefore report an
error.
All number/letter combinations are continuously checked for correctness and the
individual data blocks are combined to form a chain of individual data blocks – the
blockchain. Due to the interlinking of these number/letter combinations, the
information stored on the blockchain cannot be tampered with (at least this would
(1) An algorithm that turns a variable amount of text into a small, fixed-length value called a
"hashvalue" or "hash code." Hash functions are widely used to create codes for message
authentication.

require a great deal of effort). This continuous verification process (called “mining”) is
performed by the members of the blockchain, who are rewarded for this service
according to the computing power they contribute.
The verification process ensures that all members can add to the blockchain but no
subsequent revisions are possible. This enables direct, peer-to- peer transactions
between persons or organisations that used to require the services of an
intermediary in order for their transactions to be legitimately recorded. For example,
while a bank is currently needed as an intermediary to effect a financial transaction
between two parties, the same transaction can be executed and documented directly
between the two parties if a blockchain is used.
The verification process
2.3 How the blockchain works in detail?
Each blockchain is essentially a so-called “DApp” (decentralised application)
operating on the basis of a peer-to-peer protocol and coming with the special feature
that it provides distributed storage functionality for storing transaction data.
DApps are open-source applications which represent a contract between a network
and its users and which run on a distributed register (the so-called “ledger”), such as
the Bitcoin or Ethereum blockchains. What makes this type of application special is
that no single organisation controls these contracts or holds a legal claim over
them, but that all decisions (e.g. on protocol adaptations) are taken by
consensus between the users on the basis of computer code.

In order for an application to qualify as a genuine decentralised application, both its
protocol and data must be stored on a public, decentralised blockchain (to avoid a
central point of failure) and validated using a decentralised verification mechanism
(e.g. “proof of work”).
Properly decentralised applications ensure that a reliable record can be kept of all
transactions and business deals, even in the event that key websites and interfaces
go offline. Also, no one can subsequently revise or erase the ledger.
DApps can be classified as follows:
● Type 1: decentralised applications that have their own blockchain
Examples:Bitcoin, Altcoin,Litecoin
● Type 2: decentralised applications that use the blockchain of a type 1 DApp
Example: OmniProtocol (a software layer built on top of the Bitcoin blockchain)
● Type2 DApps are protocols and use their own tokens
● Type 3: decentralised applications that use the blockchain of a type 2 DApp
Example:the SAFE Network,which uses the Omni Protocol to issue “safecoin”
tokens.
The proof-of-work and proof-of-stake concepts
The purpose of the verification process is to achieve consensus on the content of the
distributed ledger. Consensus-based verification is a decentralised (i.e. embedded on
the blockchain itself) and automated process.
The following two mechanisms are most commonly used to establish consensus. But
there can be other verification process, like the proof of concept (see annex 1).
Proof-of-Work
The proof-of-work concept is the consensus mechanism most frequently used in
conjunction with blockchain technology, and relies on so-called “miners”. Each block
is verified through mining before its information is stored. The data contained in each
block is verified using algorithms which attach a unique hash to each block based on
the information stored in it.
Hash algorithms are used to convert data of an arbitrary length to a fixed length,
thereby creating a hash. The hash value represents a checksum which is used to
encrypt a message of variable size using a hash function. No two encrypted
messages may be based on the same hash value, nor will the hash value provide
any clues as to the message content.
These hashes can be either ordinary hashes or cryptographic hashes. The
complexity of this task lies in finding a specific hash corresponding to the block’s
content. The level of complexity (difficulty) adjusts flexibly in response to the
computing power available on the miners’ network, so as to ensure that new blocks
can be hashed at predefined intervals (Bitcoin: 10 minutes, Ethereum: 10 seconds).

Even if only a single piece of information relating to any transaction is subsequently
changed, for example if the amount of a transaction is altered as a result of
tampering or due to transmission errors,the algorithm applied to the block will no
longer produce the correct hash. The hashes computed for the same block, which
was stored many times around the decentralised network as described above, are
compared so that changed blocks can be identified and declared invalid. The verified,
correct version of a block is identified by the majority of participating computers and
added to the other blocks previously verified, thereby extending
the blockchain. Once the block which contains the initial transaction is added to the
blockchain and this addition has been stored by a sufficient number of network
participants, the transaction is confirmed to both parties.
The mining process can also be used to take decisions on changes to a DApp.
Decisions made in accordance with the proof-of-work principle are taken on the basis
of the amount of work the individual stakeholders have performed to verify a block.
Proof-of-stake
The proof-of-stake approach simplifies the mining process where a large number of
tokens need to be verified. While under the proof-of-work principle, a large group of
distributed users are continuously verifying the hashes of transactions through the
mining process in order to update the current status of the blockchain assets, the
proof-of-stake concept requires users to repeatedly prove ownership of their own
share (“stake”) in the underlying currency.
Where the proof-of-stake method is used, the work required to carry out the
verification process is allocated between the individual members based on their stake
in percent. For example, if a user owns a 10% share of the total outstanding
blockchain assets, the user will have to carry out 10% of the required mining activity.
This approach reduces the complexity of the decentralised verification process and
can thus deliver large savings on energy and operating costs.
What are tokens?
The term “token” may refer to several things: a token can be used to grant users
access to a (de-)centralised computer application, act as a key for the execution of
digital transactions or represent a currency unit (e.g. bitcoins).
DApp tokens must be generated and distributed according to a standard algorithm or
set of criteria. Tokens constitute the basis for using an application, and are also a
reward for contributions by users. Yet tokens do not represent any assets, nor do
they give rights to dividends or equity shares. Although the value of a DApp token
may increase or decrease over time, it would be a misconception to think of them as
a type of security.
What mechanisms are used to distribute tokens?
There are three general mechanisms DApps (e.g. Bitcoin, Ethereum) can use to
distribute their tokens (e.g. bitcoins, ethers): mining, fundraising and development

• Mining: tokens are distributed as a reward to those participants who solve certain
verification operations most quickly (with consensus being established by proof of
work). Bitcoin is one example of a DApp issuing its tokens through mining.
Fundraising: tokens are distributed to those who funded the initial development of the
DApp.
Development: tokens are generated using a predefined mechanism and are available
for the future development of the DApp (with consensus being established by proof of
stake).
Smart contracts
The Ethereum blockchain was created in 2011 by Vitalik Buterin, a russian
developer. It created the concept of smart contracts in a blockchain.
Smart contracts are computer protocols that facilitate, verify, or enforce the
negotiation or performance of some sort of agreement (e.g. a legal contract
emulating the logic of contractual clauses or a financial contract specifying
responsibilities of the counterparts and automated flows of value). Smart contracts
usually have a user interface that can be implemented as web page, an application,
or a mobile app.
Thus traditional contracts could become outdated for the purposes of certain
transactions. Rather than drafting a costly, lengthy contract employing attorneys,
banks and notaries contracts might be created with a few lines of code, perhaps
constructed automatically by wiring together a handful of human readable clauses.
It would for example be possible to create a fully automated smart contract between
an energy producer and a consumer that autonomously and securely regulates both
supply and payment. If the customer were to fail to make payment, the smart contract
would automatically arrange for the power supply to be suspended until payment has
been received, provided the parties had previously agreed to include such a
mechanism in their contract.

3. HOW COULD BLOCKCHAIN HELP
OUR COUNTRIES TRANSITION TO A
LOW-CARBON/LOWER
NUCLEAR-POWERED ECONOMY?
3.1 Blockchain could facilitate the adoption (hence
the development) of renewable energies
The European Union and the French government have set ambitious goals for developing
renewable energies. The blockchain technology could help accelerate the adoption of
renewable energies in critical economic sectors like the home building industry and the
personal transport industry.
Encouraging prosumers to adopt and invest in renewable energies
at home
- by facilitating the buying and selling of decentralised energy:
An experimental energy microgrid in Brooklyn, New York, shows how
energy-generating homes can become part of a peer-to-peer electricity system and
shows how the blockchain technology can help this electricity system work.
Here is the idea: “On one side of President Street, five homes with solar panels
generate electricity. On the other side, five homes buy power when the opposite
homes don't need it. In the middle is a blockchain network, managing and recording
transactions with little human interaction.”

Brooklyn micro-grid projet
The project, called TransActive Grid, is a joint venture between Brooklyn Microgrid
developer LO3 Energy and blockchain technology developer ConsenSys, a startup
focused on Ethereum applications.
TransActive Grid includes a hardware layer of smart meters and a software layer
using the blockchain and smart contracts ‒ self-enforcing contracts on the Ethereum
blockchain which provide an auditable, non-repudiable and cryptographically secure
history of automated transactions. The participants’ homes are equipped with smart
meters linked to the blockchain to track the electricity generated and used in the
homes and manage transactions between neighbors.

Source: Fox news, going solar on the City
The energy meter data from the participants within the microgrid becomes an oracle
that feeds into Consensys’ token issuance and management system to create tokens
representing the electricity surplus generated by the prosumers’ solar arrays. The
tokens, which indicate that a certain amount of energy was produced from a
renewable energy source, can be transacted on the blockchain and transferred from
one smart meter wallet to another.
Blockchain technology permits developing sophisticated data networks for efficient,
self-executing community management of energy networks.
Confluence project with Bouygues Immobilier in Lyon
Bouygues Immobilier, a leading real estate company in France, has partnered with 2
French start-ups, Stratumn and Energisme, to build the first local energy network in
France powered by blockchain technology.
The project consists in building a decentralized local network of supervision of the
exchanges of energy in the city of Lyon. The district of Lyon Confluence, housing a
Demonstrator of the Institute of the Sustainable City (IVD), is the site chosen to
deploy this technology enabling prosumers of solar energy to follow directly and
locally their energy exchanges.
A demonstrator of this solution was introduced at the Blockchain Hackademy
organized during the Microsoft experiments held on October 4 and 5, 2016 at the
Palais des Congrès in the presence of Satya Nadella, CEO of Microsoft Inc.
Nicolas Gaume, Director of the Developer eXperience division at Microsoft France
explains: « we are glad that this demonstrator has been developed and deployed
quickly thanks to Azure's "Blockchain as a Service" platform.”
“Microsoft was instrumental in sourcing the start-ups we needed to implement our
idea” said Olivier Sellès, the project director in the department of innovation at
Bouygues Immobilier.
This project was made possible after the promulgation in July 2016 of a government
order allowing self-consumption of energy produced by local, decentralised
producers (see the full order in annex 2).
Mr Sellès explains that Bouygues Immobilier is well ahead of the regulation as far as
energy in office buildings is concerned. All new office buildings built nowadays by
Bouygues Immobilier are net energy producers (BePos buildings, positive energy
building), thanks mostly to photovoltaic panels installed on all new projects.
Bouygues Immobilier’s customers for their office building division are institutional
investors (insurance companies..) which invest long term funds. They expect
therefore that the buildings they acquire will keep its value when they divest it in
20-odd years.

Individual investors do not have this long term vision when they acquire a flat or a
house. Hence the slow adoption of BePos apartments by individual buyers.
Bouygues Immobilier’s challenge is to increase “perceived value for renewable
energies” in order to promote BePos buildings towards family or individual buyers:
What is it to live in a positive energy building? How to live with a reduced energetic
print?
Mr Selles argues that the blockchain technology will allow to build use-cases that will
demonstrate the value of renewable energy to the building’s inhabitants. What form
theses use-cases will take (mobile app, web portal...) remains to be seen. It is to the
people to define what they could expect from the technology. Mr Sellès will run focus
groups with the building inhabitants along the year and expects first outcomes at the
end of this year.
To implement this project Bouygues Immobilier works with Stratumn, a French
startup dedicated to blockchain technology.
Stratumn will design, develop and implement the technology behind the concept
worked out by Bouygues Immobilier. Stratumn works with the Tendermint blockchain
and its proof-of-process consensus method (see annex 1).
The project will unfold in 3 parts:
1) Proof of concept
The proof-of-concept built during the Microsoft Experiments in oct 2016 has
validated the methodology and the capacity to acquire data about production
of PV electricity on one side and consumption of this PV electricity by different
consumers on the other. The POC showed that it was possible to build a
database with data certified, auditable and reliable.
2) Deployment in the Confluence building
In the Bouygues project in Lyon, Stratumn will set up a smart meter at the exit
of the solar installation to measure electricity production. It will then set up a
smart meter at the entrance of each apartment of the buiding to measure the
electricity consumption. All smart meters will work as oracles for the
blockchain that will measure electricity output and input.
3) Deployment of a market place
Ultimately if the project is successful Stratumn’s technology will serve as a
market place for various buildings where each building’s blockchain will plug
and organise the exchange of energy and data between the buildings.
Reducing frictions attached to current political incentives to the
renewable energies
A new currency to incentivize prosumers
The biggest disincentive to getting solar panels today is that regulatory conditions in
the market might change suddenly for political reasons.
In France for instance the Fillon government has abruptly reduced the purchase price
of electricity generated by these photovoltaic installations by EDF: -30% in January

2010 and -12% in September 2010. It even decided a moratorium on all photovoltaic
projects in december 2010. Consequences were painful: according to the Renewable
energy corporate union, ⅓ of the jobs in the industry were lost in France during 2011.
.
A group of researchers from the Free University of Bruxelles led by Mihail Maihaylov
have introduced the concept of NRGcoin – a decentralized digital currency for
renewable energy, based on Blockchain technology.
The NRGcoin concept is visualized in the figure below. When a prosumer generates
energy and injects it in the grid she receives information from the grid operator on the
balance of supply and demand in the micro-grid (or district). This information is then
source: Boosting the Renewable Energy Economy with NRGcoin
used by the smart meter at that agent’s home to securely create (also issue, or
“mint”), new digital units (or NRGcoins) for that prosumer. For every 1 kWh of
renewable energy that the prosumer injects in the grid, her smart meter creates 1
NRGcoin. At any time, the prosumer can offer to sell her coins on the NRGcoin
currency market – a FOREX-type currency exchange. Consumers join the NRGcoin
market and buy NRGcoins using fiat currency, e.g. Euro, Dollar, Pound, etc.
When consumers use green energy from the grid their smart meter automatically
pays for that consumption using NRGcoins, instead of traditional currency.
All digital transactions of NRGcoins, including their creation, are governed by the
decentralized NRGcoin protocol – a piece of software running on the peer-to-peer
network of smart meters. This protocol is based on the Ethereum Blockchain
technology.
Thus the NRGcoin concept offers a number of benefits in the smart grid:
It works as a subsidy scheme for renewable installations with lower risk
against policy change for prosumers. The issuance of the currency is governed by
a decentralized protocol that can only be changed by a majority vote and thus not by
individual market actors.
The NRGCoin offers a mechanism that reduces the need for government support
schemes, since prosumers are generating their own money, thus saving on budget.

"NRGcoin gives you protection against policy change because now the payment is
built into the protocol, which is decentralized. One kilowatt-hour always equals one
NRGcoin—nobody can change it". Dr Mihailov argues.
Facilitating the certification process
Potential future area of application is to use blockchains for the purpose of
documenting ownership and related transactions, i.e by providing secure storage of
ownership records. The possibility of storing all transaction data in a tamper-proof
and decentralised way opens up great opportunities in the field of energy
certification. Two applications come foremost to mind: the first is in the verification of
renewable electricity and of emission allowances (emissions trading). The ownership
history of each certificate could be recorded exactly on the blockchain. This would
provide a tamper-proof and transparent way of managing certificates for renewable
power and emission allowances.
Another use case, which is related to the Internet of Things, is to set up a
blockchain-based register that records and regulates the ownership and current state
(asset management) of assets such as smart meters, networks and generation
facilities (e.g. solar systems).
Helping Distribution system operators manage the smart grid...
Smart electrical grids will have a daunting task integrating a growing network of
small, decentralised electrical power plants, producing intermittent solar or wind
energy.
There are nonetheless a lot of potential advantages in a blockchain-based micro-grid,
as opposed to simply selling excess electricity back to a local utility.
First, you don't have to bring in so much power over long distances, which minimizes
losses. Second, it means more resilience: micro-grids can be isolated from the larger
grid during storms, ensuring some power remains available.
Securing the origin and validity of the metadata exchanged about energy
Blockchain can indeed help deliver this promise in a key aspect of the contract
between prosumers and distribution system operators: securing the validity of data.
In a conference about blockchain and energy given in January 2017 in Total building
in Paris, Sébastien Couture, director of Community Relations at Stratumn, explains
how Stratumn blockchain technology will secure the data attached to production and
consumption of energy and help set-up trustless exchanges within the smartgrid.
The POC developed with Bouygues Immobilier and Energisme smart counter has
proven that Stratumn blockchain technology could supply a tamper-proof data about
production & consumption of energy. THis entails that smart contracts could be
set-up not only within a local blockchain but in-between other local trustless
blockchains, i.e with another building from another real estate company for instance.

Balancing supply and demand on the network
Blockchain technology makes it possible for energy networks to be controlled through
smart contracts. Smart contracts would signal to the system when to initiate what
transactions. This would be based on predefined rules designed to ensure that all
energy and storage flows are controlled automatically so as to balance supply and
demand.
For example, whenever more energy is generated than needed, smart contracts
could be used to ensure that this excess energy is delivered into storage
automatically. Conversely, the energy held in storage could be deployed for use
whenever the generated energy output is insufficient. In this way, blockchain
technology could directly control network flows and storage facilities. Smart contracts
could also be used to manage balancing activities and virtual power plants.
NRGcoin mechanism as a digital currency could also act as a balancing factor in the
smart grid. Since the rates at which substations pay prosumers depend on local
supply and demand, different prosumers may earn different number of NRGcoins for
the same amount of injected energy at different locations of the smart grid.
Again, these rates are independent from the current market value of the NRGcoins.
The difference in the rates is related to the balance of local energy production and
consumption that the DSO strives to achieve, as well as for flattening supply and
demand peaks. For example, the value of generated energy in a neighborhood full of
producers will be much lower than the NRGcoins that a single producer will earn in a
neighborhood full of consumers.
Thus, the value difference imposed may stimulate consumers to install
renewable energy generators and become producers, while at the same time
discourage excess production or consumption that overload the transmission
lines.
Similarly, consumers are motivated to shift their consumption away from demand
peaks and towards production peaks, as that will lower their energy bill. The more
energy supply matches demand, the more NRGcoins producers receive from the
substation and the fewer coins are paid by consumers to the substation, as the
additional energy it needs to supply to that neighborhood is low. In this way agents
strive to balance supply and demand, i.e. achieve demand response, out of their own
self-interest. Prosumers are motivated to feed just enough renewable energy to the
grid, while consumers minimize their costs by shifting their consumption pattern
towards time slots of higher production.
Helping transform the energy distribution system from a centralised/
decentralised system towards a distributed system of energy
With the increase of both local and global energy consumption and renewable energy
costs plummeting, the energy system has started to evolve... So, more and more it
looks like pretty much like that:

Source: Daisee.org
In a more decentralized organization relying on diffuse renewable resources,
production points are more local and close to consumption points.
There are mainly 4 problems related to this new decentralised organisation:
● First, energy producers and dispatchers do not know well (usually not at all)
the real time consumption pattern at the micro-level, meaning they do not
have meaningful energy consumption information on their clients that would
help to real time optimize the production/consumption balance;
● Second, in current systems energy losses are huge (between 7 and 12% of
the total production) because of losses in the pipes making the grid;
● Third, the current systems do not take the full potential of local resources;
those systems are not in place and not consistent with developing countries
issues about energy accessibility;
● Last but not least, consumers do not get real interaction with energy, making
raising awareness on reducing energy consumption hard. The only relation
you've got with your energy provider is, first the bill, second the switch.
The solution that is proposed here to solve those problems is to experiment and
move towards a (more) distributed energy systems organization, like that:

Source: Daise.org
Distributed energy systems will help to develop decentralised autonomous energy
organisations, thus providing strong and resilient answers to the here-above
mentioned challenges.
In line with this smart grid challenge, the DAISEE project was created in Lyon,
France. Its mission is to build the "Internets of Energy" and organise energy as a
“common”. Their aim is to deploy open-source secured decentralized autonomous
energy production systems and consumption monitoring, in line with building
micro-grid infrastructures; thus enabling trusted peer-to-peer energy transactions
through the blockchain technology.
There are 3 packages in their master plan:
● Energy monitoring: how to securely monitor energy consumption /
production on a system based on open-source technologies?
● Machine dialogue: how to make objects take consensual decisions while
dealing energy-token between them about who’s consuming what-when-how ?
● Trusted transactions: how to make it possible to make peer-to-peer energy
transactions at the district / town / territory level?
3.2 Blockchain could help the transport industry
migrating from fossil fuels to electricity
Facilitating charging of Electric vehicles: slock.it project
Blockchain technology could be used to build a simple, blockchain-based billing
model and thereby help remove one of the largest barriers currently preventing
users from adopting electric mobility on a large scale. Widespread use of electric
vehicles (EV) can only become a reality if EV drivers can access charging stations

everywhere. One issue we face today is how to simplify billing at charging stations,
which may be located in public spaces where they can be used by anyone.
Blockchain technology could be one option (besides other advanced payment
models) on which to base a model under which EV drivers could park their cars, for
example to go shopping, whilst the car autonomously logs on to a charging station
and is recharged automatically (in the long run maybe even through induction). Once
the driver leaves the parking lot, the charging station would automatically bill them for
the electricity received, using blockchain technology.
Slock.it is a German start-up that was founded by early members of the Ethereum
project. They are currently running a pilot project with RWE, a large German utility
firm that supplies energy to 30+ million people.
The first one of these projects is an autonomous electric charging station, integrating
a smart contract that allows users to rent the station, put up a deposit, charge their
car, then get their deposit back.
Beside the end user experience, what would make this solution superior to a
centralized one? First it will offer simplified billing: the charging station works on
behalf of RWE and handles user authentication, payment processing and loyalty
point assignments as part of one single immutable transaction.
Second, it aims to get rid of the centralized server. Here, RWE makes proper use of
the public blockchain by leveraging a shared resource and paying only for what it
uses. In effect, they are renting access to the network of computers working for
Ethereum (the so-called “world computer”).
Third, it guarantees fraud-proof accounting — all the transactions take place on the
blockchain allowing them to have complete transparency over the transaction
process.
Last but not least, using blockchain makes onboarding channel partners simple, by
leveraging open APIs instead of service oriented architectures.
Slock-it is also developing Share&Charge, a pilot project using blockchain
technology with Innogy, another German utility.
Share&Charge enables users to easily share their private Electric Vehicle charging
stations.
The user experience consists of mobile geolocation app to identify and navigate to a
given service, in this case a charging pole. Once at the pole (provided in a peer to
peer fashion by another Share&Charge user), the consumer swipe their cellphone
and makes use of the charging service, paying only for what they use. The operator
of the pole is rewarded in tokens valued at EUR 1 they can then use to consume
other services on the platform, including gaining access to 3rd party offers, or
redeeming the tokens for cash.
Share&Charge leverages the blockchain, and has chosen Ethereum in particular
because of its support for smart contracts. On this chain the system creates a token,

to which it assigns a mobility value denominated in EUR, (not dissimilar to a gift
card). Users can purchase these tokens or earn tokens by providing services.
This creates a decentralized marketplace that couldn’t exist as part of a traditional
model: third party services from partners synchronise around a shared state, without
having to ask permission or make use of cumbersome APIs.
A private Ethereum Blockchain ensures the transparency and security needed to
retain the trust of our partners but also the Share&Charge users.
Slock.it mobile application enables anyone to benefit from a platform secured by
proven cryptographic principles without knowing the technical details behind it,
making it as easy to use as any other mobile application.
To this decentralized marketplace slock.it aims to one day add the services of
autonomous machines, for example cars pre-authorized to pay for the energy they
need, without any human intervention.
Share&Charge in effect inherits from the blockchain core characteristics: namely
immutability, refutability, and automation, all three of which leading to cost reduction
and the creation of never seen before peer-to-peer services.
3.3 Blockchain could help reduce the energy
consumption
The first objective of the French law for the energy transition and green growth (loi
pour la Transition Énergétique et la Croissance Verte) is to reduce the final energy
consumption in France by 20% between 2012 and 2030 and by 50% in 2050.
In the current centralised systems, energy losses are huge (between 7 and 12% of
the total production) because of losses in the pipes making the grid.
Relying on peer-to-peer energy transaction through micro-grid at the local level
(thanks to the blockchain) makes it possible to significantly reduce energy losses in
the grid since electricity does not have to cross the country to reach the consumption
point.
Blockchain could help overcome yet another major issue about consumer behaviour
towards energy. Energy practice theory postulates that energy is not used
consciously or rationally, but rather as the ‘by-product’ of practices like cooking,
washing, showering, working, commuting, watching TV, socializing, and travelling.
Such practices are often driven by routines and socially shaped expectations. It
renders attempts to promote energy reduction difficult.
A distributed system makes it possible to switch from pure consumer to "prosumers",
giving a way for people to be involved in energy governance. Not only this helps to
tackle on-ground needs but also to make energy a palpable good.

4. What are the risks about the
blockchain today?
Blockchain technology is still in its early-stages of development at present, which
means that it comes with a range of uncertainties and risks. Outside the Bitcoin
context – the most established blockchain application to date – no long-term
experience with the blockchain is available.
Many experts also suspect that blockchain technology might not be as scalable as
needed. Given the extremely fast rate of data growth, the sheer data volumes
accumulating after several years of operating a blockchain place high demands in
terms of security, speed and costs.
4.1 High energy intensity required by the verification process
Proof-of-Work (POW) System or mining (the verification process used for the bitcoin)
is reputedly highly secure but its mining process is highly energy-intensive and
therefore lacks the scale required by the energy market.
During the conference about blockchain & energy at MIT in , Lawrence Orsini, CEO
of LO3 argues that moving into blockchain, energy would “create a scale that
surpasses bitcoin. There are huge energy costs attached to bitcoin blockchain and
moving to other distributed verification systems like the Ripple protocol or Proof-of
Stake Systems (PoST) in order to secure the blockchain would be necessary.”
Proof-of-Stake (PoST) blockchain securitization has been demonstrated to reduce
electricity usage by 99% when compared to POW blockchain securitization.
4.2 Security risks
Discarding POW system of verification for the energy blockchain for scalability
reason will entail a higher security risk. This was unfortunately proven by the attack
on the application “DAO” (Decentralized Autonomous Organization), which came to
light in the summer 2016. The DAO works on the Ethereum blockchain with PoST
verification process. Due to faulty programming, a hacker could extract several
millions from the DAO before it was stopped.
Joichi Ito argues that the ultimate way to reconcile security and reasonable energy
spending during the verification process would be to do a Proof-of-Work that would
be computationally useful for other computer applications. Such a process however
is still at R&D level according to Mr Ito.

4.3 Impact on the energy bill for the consumer
Blockchain models operate on the assumption that all providers transact directly with
their customers. One consequence of this would be that the intermediaries previously
operating in the market, among them trading platforms, traders, banks or energy
companies, might no longer be needed at all but in any case they would be reduced
to a considerably smaller role. This could lead to a significant decrease in system
costs.
On the other hand, there are the operating costs of blockchain systems, which
include transaction fees for blockchain transactions. As we have seen above the
required computing power and related energy use might also have to be factored in
the actual operational cost of the blockchain. So that the actual costs of blockchain
applications cannot be projected today.
And so what? Should lowering the bill be the ultimate reason for implementing the
blockchain in the energy market? Some pioneers of the energy blockchain claim it
should not.
Said Lawrence Orsini, CEO of LEO“You are not going to care about the 5$ that the
blockchain is going to save you on your energy bill but you are going to care about
other things: how the energy was produced? who produced it? was it produced in my
community?”
In Olivier Sellès’ opinion “we shall not motivate people to invest in renewable energy
by promising monetary gains but by offering additional services”. There is anyway not
many monetary gains to be expected from a local renewable energy power plant.
And today these gains are offset by the technology required to show these gains to
the users.
The objective of Olivier Sellès is therefore to build a use case with the building’s
inhabitants. His aim is to supply a low-cost tool that will generate interest for
renewable energies among the people living in the building. For Olivier Sellès
Blockchain is just the technology that will help do that because it allows a low-cost
access to the data required to build user-friendly interface for the prosumers. To him
the blockchain should help achieve a sense of local community through energy
sharing between inhabitants.
4.4 Regulatory limitations
Today the French government promulgation order of July 2016 does not allow
commercial transactions on a peer-to-peer basis within local smart grids (see annex
2). Today the prosumer has to give its surplus for free to Enedis, the French DSO.
The legislator has yet to define the tariff Enedis (the so-called TURPE, see below)
will collect on every kwh which will be carried over the local smart grid or in-between
local smart grids.

Price structure of the electricity in France
Source: Hespul
Energy blockchain advocates argue that the “TURPE” should be minimal for local
smart grids since the transactions occur within a very small area.
Enedis on its side explains that a local smart grid needs to be connected to the
broader centralised grid even if only there is a local glitch in the local smart grid.
Consumers would then appreciate to be supplied by a neighbouring local smart grid
thanks to the existing centralised network.
The Ministry of ecology, sustainable development & energy has mandated the
“Comité de Régulation de l’Énergie” (the French regulatory body for energy, so-called
CRE) to determine the TURPE for prosumers.
The CRE decision in that matter will be highly scrutinised by the local actors of the
blockchain for energy market as it will strongly impact their business models and
consequently the future of local smart grids powered by renewable energies.
5. Conclusion
Under the current system, energy is produced in centralised generation facilities and
delivered to industrial and domestic users via the electrical grid managed by
distribution system operators (like Enedis in France).
Traders buy and sell energy on the exchanges and banks act as payment service
providers, handling the transactions made by the parties involved.
Blockchain-based energy processes would no longer require energy companies,
traders or banks (for payments). Instead, a decentralised energy-transaction and
supply system would emerge, under which blockchain-based smart contract
applications empower consumers to manage their own electricity supply contracts
and consumption data.
Blockchain technology could give a boost to a currently emerging trend: the rise of
the role of the prosumer. Lower transaction costs and simpler billing processes would

enable small providers or energy consumers to participate in the market not only as
consumers but also as providers.
Consumers who operate their own solar systems, for instance, could more easily sell
on the electricity they produce to their neighbours or feed it into the network. This
would improve the economic viability of solar systems, small-scale wind turbines or
customer-owned CHP plants, which in turn would increase the number of prosumers.
Consumers also stand to benefit from a more diverse product offering and lower
prices. In addition, blockchain models could facilitate the realisation of community-
funded energy projects.
Simplified routes to market for distributed energy generators would further boost the
growth of renewables. Indirectly this might also have a positive effect on the
economic structures in their region. Distributed generation can provide economic
stimulus through services, for example in the fields of maintenance or operations.
Increased deployment of windpower could be a particular benefit in areas with little
infrastructure and slow economic growth.
Nonetheless whether users’ awareness of the technology will grow will also be
dependent on the availability of concrete suitable applications for consumers. At
present, blockchain is a purely technology-driven development. There are no suitable
applications available for customers who wish to actively control and manage their
energy supply, nor are there automated software solutions for customers who do not
want active control of their energy supply. The first group of end customers require
suitable applications they can use without difficulty. These apps must be
user-friendly, easy to use and effective. No such applications have emerged as yet,
although individual companies like Bouygues Immobilier in France and start-ups (like
Stratumn, Energisme in France, Consensys in the USA, Slock.it in Germany) are
working to develop solutions.
Customers who do not wish to actively manage their energy supply, for example
because they do not own a smartphone or do not want to spend any time on doing
this, require automated software solutions. Blockchain technology will not succeed in
the energy sector unless such applications are developed and used on a large scale.
Overall, it can be said at the present point in time that blockchain technology certainly
shows a lot of potential – from a customer perspective too – and should be further
developed by market participants. The approaches seen thus far may have a
disruptive effect in the future and might require additional regulatory intervention in
an already tightly regulated energy market. If blockchains are to deliver benefits for
consumers and consequently help accelerate the energy transition in Europe, a
strong focus on consumer issues will be needed.

6. Annexes
Annex 1: The proof-of-concept method
Proof of Process is a scalable protocol that allows multiple partners to trust a
common process, or a workflow, by decoupling the proof of data from the secret data
in a way that results in a single contextual proof that spans all the steps of a process.
In life and the world at large, we see processes everywhere. A process is any
sequence of steps in time. Whenever there is a movement of information, ideas,
conversations, goods and products, we have a process.
If we can play back the steps of a process, then we have enabled auditing and
traceability. And if every step in a process can demonstrate its veracity to observers,
then we have transparency.
Traditionally, when institutions want to share their set of processes with each other,
they have to create common bridges to share their data. Those bridges usually
consist of APIs, firewalls, and access management.
These bridges leave us two important questions: How can we trust the data? And
once the data is trusted, can we reuse the trust?
The prevalence of Software as a Service (SaaS) platforms have resulted in more and
more consumers to rely on someone else’s processes and systems for their business
and data. For such platforms proving that their platform can be trusted to their
customers is highly critical.
Proof system
A proof system is what enables a first party (called a 'Prover') to exchange messages
with a second party ('Verifier') to convince the Verifier that the subject of the proof to
be true within the context of their mutually agreed upon source of trust. Figure 2.
Proof System There can be two kinds of proof systems. For a posteriori and
subjective facts a proof system can be made to establish a protocol for capturing
enough information from a process to build a proof that can demonstrate the trust
that established the process in the first place. For a priori facts: being computationally
verifiable, by enabling code execution for validating each step of a process where the
code execution is deterministic in nature. Thus, the validation logic acts as the proof
system. For the purpose of this paper, we only focus on the former: proof system for
a posteriori and subjective facts. And we are not checking if the facts were
established in an honest way. However, for established facts, we are enabling a
proof system to demonstrate who established what, when, where, and how. These
facts are in the context of a process; thus, the proof system covers all of the steps of
process. Proof of Process is a scalable protocol that allows multiple partners to trust
a common process, or a workflow, by decoupling the proof of data from the data in a
way that results in a single contextual proof that spans all the steps of a process. In

fact there can be a separate thread, one for the actual process with factual steps,
another for the proof system corresponding to the actual process. Thus, the trust
source that attests datasets as facts through fact-checking in turn builds a separate
thread for enabling proofs to verify the veracity of the facts. By separating the proof of
data from the data itself, the proof of process can exist in parallel to the actual
process. The proof of process can contain minimal information, and no sensitive data
from the actual process but can be used to verify the veracity of the facts of the
actual process.
Source: Stratumn, Proof of process

Annex 2: Ordonnance n° 2016-1019 du 27 juillet 2016
relative à l’autoconsommation d’électricité
Le 26 janvier 2017
JORF n°0174 du 28 juillet 2016
Le Président de la République,
Sur le rapport du Premier ministre et de la ministre de l’environnement, de l’énergie
et de la mer, chargée des relations internationales sur le climat,
Vu la Constitution, notamment son article 38 ;
Vu le code de l’énergie, notamment ses articles L. 111-91, L. 322-8, L. 333-1 et L.
341-3 ;
Vu le code de justice administrative, notamment son article R. 123-20 ;
Vu la loi n° 2015-992 du 17 août 2015 relative à la transition énergétique pour la
croissance verte, notamment son article 119 ;
Vu l’avis du Conseil supérieur de l’énergie en date du 14 juin 2016 ;
Vu l’avis de la Commission de régulation de l’énergie en date du 13 juillet 2016 ;
Vu l’avis du Conseil national d’évaluation des normes en date du 21 juillet 2016 ;
Le Conseil d’Etat (section des travaux publics) entendu ;
Le conseil des ministres entendu,
Ordonne :
Article 1
Le titre Ier du livre III du code de l’énergie est complété par un chapitre V ainsi rédigé
:
« Chapitre V
« L’autoconsommation
« Art. L. 315-1.-Une opération d’autoconsommation est le fait pour un producteur, dit
autoproducteur, de consommer lui-même tout ou partie de l’électricité produite par
son installation.
« Art. L. 315-2.-L’opération d’autoconsommation est collective lorsque la fourniture
d’électricité est effectuée entre un ou plusieurs producteurs et un ou plusieurs
consommateurs finals liés entre eux au sein d’une personne morale et dont les
points de soutirage et d’injection sont situés sur une même antenne basse tension du
réseau public de distribution.

« Art. L. 315-3.-La Commission de régulation de l’énergie établit des tarifs
d’utilisation des réseaux publics de distribution d’électricité spécifiques pour les
consommateurs participants à des opérations d’autoconsommation, lorsque la
puissance installée de l’installation de production qui les alimente est inférieure à 100
kilowatts.
« Art. L. 315-4.-La personne morale mentionnée à l’article L. 315-2 organisatrice
d’une opération d’autoconsommation collective indique au gestionnaire de réseau
public de distribution compétent la répartition de la production autoconsommée entre
les consommateurs finals concernés.
« Lorsqu’un consommateur participant à une opération d’autoconsommation
collective fait appel à un fournisseur pour compléter son alimentation en électricité, le
gestionnaire du réseau public de distribution d’électricité concerné établit les index
de consommation de l’électricité relevant de ce fournisseur en prenant en compte la
répartition mentionnée à l’alinéa précédent.
« Art. L. 315-5.-Les injections d’électricité sur le réseau public de distribution
effectuées dans le cadre d’une opération d’autoconsommation à partir d’une
installation de production d’électricité, dont la puissance installée maximale est fixée
par décret, et qui excèdent la consommation associée à cette opération
d’autoconsommation sont, à défaut d’être vendues à un tiers, cédées à titre gratuit
au gestionnaire du réseau public de distribution d’électricité auquel cette installation
de production est raccordée.
« Ces injections sont alors affectées aux pertes techniques de ce réseau.
« Art. L. 315-6.-Les gestionnaires de réseaux publics de distribution d’électricité
mettent en œuvre les dispositifs techniques et contractuels nécessaires, notamment
en ce qui concerne le comptage de l’électricité, pour permettre la réalisation dans
des conditions transparentes et non discriminatoires des opérations
d’autoconsommation.
« Art. L. 315-7.-Les exploitants d’installations de production d’électricité participant à
une opération d’autoconsommation déclarent ces installations au gestionnaire du
réseau public d’électricité compétent, préalablement à leur mise en service.
« Art. L. 315-8.-Les conditions d’application du présent chapitre sont définies par
décret. »
Article 2
Après le 3° du I de l’article L. 111-91 du code de l’énergie, il est inséré un alinéa ainsi
rédigé :

« 4° Les opérations d’autoconsommation mentionnées au chapitre V du titre Ier du
livre III. »
Article 3
Les exploitants d’installations de production d’électricité participant à une opération
d’autoconsommation à la date de publication de la présente ordonnance procèdent à
la déclaration prévue à l’article L. 315-7 du code de l’énergie avant le 31 mars 2017.
Article 4
Le Premier ministre et la ministre de l’environnement, de l’énergie et de la mer,
chargée des relations internationales sur le climat, sont responsables, chacun en ce
qui le concerne, de l’application de la présente ordonnance, qui sera publiée au
Journal officiel de la République française.
Fait le 27 juillet 2016.
François Hollande
Par le Président de la République :
Le Premier ministre,
Manuel Valls
La ministre de l’environnement, de l’énergie et de la mer, chargée des relations
internationales sur le climat,
Ségolène Royal

Sources
1/ http://ec.europa.eu/priorities/energy-union-and-climate_en
2/http://www.focas-reading-room.eu/digital-currency-for-green-energy-can-boost-the-
renewable-economy/#cite-energyascurrency2012
3/ Blockchain – an opportunity for energy producers and consumers? - PWC, Global
Power & utilities
4/
http://www.fastcoexist.com/3058380/world-changing-ideas/how-blockchain-technolog
y-could-decentralize-the-energy-grid
5/ Boosting the Renewable Energy Economy with NRGcoin
6/ NRG-X-Change: a Novel Mechanism for Trading of Renewable Energy in Smart
Grids
7/
https://bitcoinmagazine.com/articles/blockchain-technology-could-enable-next-genera
tion-peer-to-peer-energy-microgrids-1461596932
8/
https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more-an-incomplete-termin
ology-guide/
9/ The Blockchain: Enabling a Distributed and Connected Energy Future:
https://www.youtube.com/watch?v=cpMwPhA9QzM
10/ McKinsey: How Blockchains Could Change the World
11/
https://www.linkedin.com/pulse/mckinsey-how-blockchains-could-change-world-don-t
apscott
12/ FOX NEWS "Going solar in the city”
https://youtu.be/sgyV0Uqa0fk?list=PLVCWCZL8ZZ0SEDbUGoWrkJTfvwM2zTzzX

13/ A Renewable Energy Powered Trustless Value Transfer Network - Connecting
the Blockchain to the Sun to Save the Planet - Authors: Luke P. Johnson, Solcrypto
14/
https://blog.slock.it/partnering-with-rwe-to-explore-the-future-of-the-energy-sector-1cc
89b9993e6#.r0zsb0cej
15/ Daisee project
http://daisee.org/#
16/
http://www.huffingtonpost.fr/2012/07/06/l-austerite-dans-le-monde-comment-les-mes
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=france
17/ http://www.slate.fr/story/31229/energie-solaire-gel-photovoltaique

Thanks
A special thank to Malorie Clermont & Nicolas Hebert from Hespul in Lyon. They first
responded to my request for interview and made me aware that blockchain was high
in the agenda of the energy market players.
Olivier Sellès from Bouygues Immobilier for the interview. I wish him good luck in his
project and look forward to updating this paper with his findings.
Véronique Colbert for her inspiring class at IPSSI DM about the memoir and her
support at the early stage of this work.
Sébastien Couture, Director of community relations, Stratumn
Dr Mihailov from the Free university of Bruxelles
Christophe Bonazzi, CEO of Webistem for letting me do this Master
Alexandre Stopnicki for his spirited management of the MSc Digital Marketing at
IPSSI DM

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