Energy Web Foundation blockchain and digital security in energy. OECD workshop, 15 February 2018

Transcription

1 Energy Web Foundation blockchain and digital security in energy OECD workshop, 15 February 2018

2 Agenda 1 What 2 is EWF? Blockchain and digital security in energy 3 The EWF Blockchain Platform: functionality and governance 4 Q&A 2

3 What is the Energy Web Foundation? EWF s Mission Foster value creation in the energy sector by promoting an open, decentralized software infrastructure built around blockchain technology What we do 1. Work jointly to develop decentralized, blockchain-based energy applications 2. Build an open source IT infrastructure upon which these applications can be implemented 3. Develop an ecosystem of users, application developers, and infrastructure providers 4. Educate regulators and other stakeholders and provide input to standardization bodies 3

4 What is the Energy Web Foundation? EWF Governance structure Advisory Board Foundation Council Dr Jon Creyts Member, EWF Managing Director, RMI Dr Herve Touati President, EWF Senior Fellow, RMI Christoph Frei Member, EWF Secretary General, World Energy Council Ewald Hesse Vice-President, EWF CEO, Grid Singularity Dr Ana S. Trbovich Member, EWF COO, Grid Singularity 4

5 EWF Affiliate Ecosystem EWF Affiliates as of Feb

6 Cultivating a broader energy blockchain ecosystem 6

7 Energy Web Foundation - Timeline Task forces & core tech (Now) Ongoing task force work Alpha version of core tech released Core tech features and testing (2018) Additional functionality Application testing and feedback from task forces Round B recruiting (starts in Q3 2017) Event Horizon Conference (April 2018) EWF blockchain goes live (2019) Begins August 1 st, closes May 1 Second annual energy & blockchain conference Affiliate-only meeting during event Token Generation Event Q Release of operational EWF Blockchain platform after generation event 7

8 Agenda 1 What 2 is EWF? Blockchain and digital security in energy 3 The EWF Blockchain Platform: functionality and governance 4 Q&A 8

9 Expert Panel at EventHorizon 2017: Control and security features of smart metering infrastructure Protocols regulating communication among utilities, smart meters, home appliances Insufficiently secure High exposure to attacks by hackers The current system incentivizes utilities to focus on short-term cost-savings rather than long-term investment in security In many regions of the world utilities lack qualified professionals to properly assess all risks and supervise outsourcing of smart meters roll-out 9

10 Expert Panel at EventHorizon 2017: Control and security features of smart metering infrastructure Conclusions Governments, including regional authorities, should set up institutional structures to accelerate the process of establishing safety guidelines Device manufacturers and electric utilities as operators of smart meters should pay more attention to security issues Responsibility for liability issues should be fully clarified Blockchain is a possible solution 10

11 Expert Panel at EventHorizon 2017: Control and security features of smart metering infrastructure The real benefit of blockchain is that the protocol and network themselves already have security implemented Jan-Peter Kleinhans, IoT-Security Project Leader of the think-tank Stiftung Neue Verantwortung Single points of failure can be avoided. When they are distributed, an attacker would have to hack each single device to obtain each single key. Devices talk to each other over this decentralized blockchain, which does not have a single point of failure. That is why there is such a good fit between blockchain and smart meters. Christoph Jentzsch, co-founder of blockchain tech company Slock.it 11

12 Blockchain features that enhance security Feature Immutability /Authenticity Traceability Smart contracts Effect on security Records of transactions cannot be altered once they have been written on the blockchain (unless all on the network agree) Every transaction added to a blockchain is digitally signed by both the sender and the receiver, making them accountable for it Can facilitate, verify or enforce rules among parties No single point of failure Operational resilience Privacy The inherent decentralized structure of blockchains makes the system significantly more resilient to attacks. A node under attack can be made redundant and continue to operate business as usual. Blockchain can provide high standards of privacy while not relying on a centralized authority (ZkSnark, Secret Store) 12

13 What are blockchains capable of in energy? EWF and others have identified over 100 potential applications to date Disruptive platforms (total = 52) Process improvement (total = 55) Game changer to potential game changer Transactive energy 26 Billing 13 P2P Trading 17 Sales & Marketing 9 Distributed generation 9 Automation Metering and data transfer 6 7 Mobility 6 Additional use cases Communication 5 RMI: 27 GSy: 30 Grid management 5 PWC: 20 Security 4 Source: DENA / ESMT survey of 70 German energy sector executives Nov

14 What are blockchains capable of in energy? We are focused on four specific application domains Taskforces conduct research and supporting Affiliate app commercialization Certificates of Origin Description: RE generators / buyers interact directly, use smart contracts to streamline overall CO process through automated issuance, tracking, and retirement Detail: EWF is developing Origin an open source, decentralized energy certification application Demand Response Description: DR aggregators use secure smart contracts to conduct aggregation, real-time M&V, settlement, and trading for EE and DR programs Detail: EWF is supporting Affiliate lighthouse projects Utility Billing Description: Utilities, third parties use cryptographic identities to manage metering, customer settlement, advanced rate implementation and/or customer switching Detail: EWF is supporting Affiliate lighthouse projects Transactive Energy Description: Devices automatically respond to local grid conditions in real time via two-way price negotiation based on a combination of user preferences and grid needs Detail: EWF is developing an app, a recursive transactive market structure / simulation environment 14

15 An example of process improvement (1/2) Certificates of origin today certificates of origin today Qualified Reporting Entity Certificate Tracking System Trading & Ownership Tracking OTC Markets Redemption, Retirement, & Reporting 5 Renewable Generator 1 2 Renewable Generator Broker Aggregator 4 REC Buyer 3 6 Annual Audit 2a REC Certification Entity REC Exchange 15

16 An example of process improvement (2/2) Certificates of origin with blockchain: high level Origin architecture Onboarding & Issuance Trading & Ownership Tracking Certificate of Origin Tracking System Redemption & Retirement 2 Renewable Generator 1 Blockchain 3 Certificate Buyer Reporting 4 Compliance or Disclosure Entity Lower transaction costs Faster execution (minutes - not weeks) Reduced working capital requirements Reduced labor Increased transparency Increased cyber-security Number of vulnerable points reduced Higher data reliability Increased transparency and traceability 16

17 Where blockchain can make a difference and how regulation needs to be adapted Emerging system architecture Wholesale Issues that blockchain can address Smart contracts for IOT Cost of transactions Cyber security / data privacy Distribution Edge kwh $ Regulation to be added Digital ID based on blockchain Metering data on blockchain (allowing customer access) License for small scale trading Direct payment of energy between parties Billing data access for grid operator (DSO) 17

18 Standards under development IEEE, ISO + Horizon research 18

19 Agenda 1 What 2 is EWF? Blockchain and digital security in energy 3 The EWF Blockchain Platform: functionality and governance 4 Q&A 19

20 The EWF Platform: Overview Emerging blockchain and energy ecosystem Certificates of Origin Transactive Energy EV Management Application Proprietary For profit (mainly) Blockchain infrastructure Blockchain (core and additional functionalities) Device interface Open source Not-for-profit Coal Gas Nuclear Hydro Wind Solar DERs Dist. Networks 20

21 EWF Blockchain Governance Open but Permissioned Network (proof-of-authority consensus mechanism) Higher degree of scale, Interoperability with other chains Identity of Authorities to be known selection criteria to be determined but aim to reach diversity (geographic, company size) and retain focus on energy Regulatory Oversight role of regulators still under discussion but agreement on enabling oversight sandboxes need to be initiated Regulatory Liability at app level 21

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23 Thank you! 23