IEEE Blockchain Transactive Energy_Claudio Lima (Aug 2022).pdf

Transactive Energy
with Blockchain DLT
Claudio Lima, Ph.D.
Chair IEEE Blockchain Transactive Energy Initiative
All rights reserved © BEC 2022 August 26st, 2022
SEPA Transactive Energy Regulatory Foundations

All rights reserved © BEC 2022
What is Blockchain?
All rights reserved (c) BEC 2020
The simple definition of Blockchain:
• “A time-stamped series of cryptographic data
records (ledgers) that is managed by
distributed computers.”
• Blockchain transactions are immutable,
transparent, and traceable.
• Each block of data is secured and bound to
each other in a data chain using cryptography
hashes.
*DLT- Distributed Ledger
Technology

Three main missanderstandings of
Blockchain in Energy
Blockchain is only used by Bitcoin, Ethereum,
cryptocurrency and fintech and cannot be used in the
energy sector
Blockchain is based on cryptocurrency data mining and
cannot be used in energy applications
Blockchain only uses Proof-of-Work (PoW) consensus
mechanism which is energy inefficiency, burns fossil
fuel, and cannot be used in energy applications
Not all blockchain(s) are the same! Not all blockchain
is Bitcoin, or Ethereum POW

IEEE Blockchain in Energy Standards, P2418.5
P2418.5
Distributed Ledger Technology (DLT)
Blockchain Non-Blockchain
(e.g., DAG, others)
ü P2418.5 is primarily a DLT standard. Blockchain is used because is the
most popular use of DLT, but other DLTs shall be considered.
ENERGY
Power Energy
Smart Grid
Renewables
Energy Markets
O&G – related to power grid
ü P2418.5 is an Energy standard and shall cover all related power and
energy grid definitions.

Smart Contract – What it is?
• createAsset
• querryAsset
• querryAssetProperties
• updateAsset
Application
Smart Contract
• update transactions
• order transaction proposal
• notify ledge update
• run query
• return query results
• etc..
Blockchain
Ledger
update,
change
states
Smart Contract is a computer logic
that automates and executes
”what..if” conditions.
source: BEC

Why Smart Contract is Important for the Energy Industry?
Automates energy trading and transactions – reconciliation,
settlements, etc. –reduces time, costs, and improves efficiency.
Automate grid processes and operations workflows
Track and trace grid assets, processes and personnel

Blockchain Distributed Ledger Technology (DLT)
Data Properties & Benefits
tamper-proof
(immutability)
no intermediaries
data/user security
track & trace
data transparency
Blockchain/DLT Ledgers source: BEC

Blockchain in Energy
Grid Applications
Rooftop Solar/
Battery
Electric Vehicle Infrastructure
DER
Substation
Transmission &
Distribution
T&D Blockchain Customer-Facing Blockchain
smart contract
smart contract
field data
field data,
energy contracts,
transactions
source: BEC

Blockchain in Transactive Energy
The Missing Component
The Blockchain Transactive Energy (BCTE) is a new layer that adds trustability,
traceability, and transparency to the existing TE layer . This layer was missing!

Blockchain Transactive Energy Definition
BCTE is an IEEE framework used for the design,
and implementation of Distributed Ledger
Technology (DLT)/Blockchain in Transactive
Energy systems.
It is composed of a modular architecture that
interfaces with existing distribution energy
systems and intersects with other existing
technologies components.
Data formats
Consensus algorithms
Governance models
Cybersecurity
Smart contracts framework
Interoperability
Areas of standardization

IEEE Blockchain Transactive Energy (BCTE) Initiative
IEEE BCTE
Position Paper
BCTE Architecture
Framework
BCTE Field Demonstration
2020 2021-2022 2022
BCTE Events,
Standards, etc.
utilities, ISOs, service-providers,
start-ups, etc.
participating partners
IEEE P2418.5 standards
18x U$10K Global Awards
for BCTE project
demonstration in 2021-2022
IEEE-CIGRE 2020, 2021, 2022
IEEE PES 2019, 2020,2021
IEEE ISGT 2019, 2020, 2022
IEEE-Ethereum Hackathon
IEEE Blockchain Energy Workshop, 2022

IEEE Blockchain in Energy Standards, P2418.5

IEEE P2418.5 DLT for Energy Use Cases

High Level Blockchain Transactive Energy Framework
Blockchain/DLT Transactive Energy (BCTE) Platform
Distribution Grid power flow
residential renewable
prosumer
commercial buildings
prosumer/consumer
SLEC
Smart
Legal
Energy
Contract
Distribution/
Transmission/
Regional
System
Operator
(DSO, TSO, RTO)
utility
enterprise
systems
sell energy
buy energy
sell energy sell energy
buy/sell
energy
consumer
prosumer/
client
energy transactions
Regulator
Blockchain/DLT BCTE Platform
generator/prosumer
Regulator
consumer
API API
Payment/
Financial
Service
Provider/
3rd parties
Bi-lateral BCTE Transaction Market-Based BCTE Transaction
energy
aggregator
Retail
Electricity

Tier 1: utility governs/owns
Tier 2: utility is a participant
Tier 3: peer-driven
utility grid governs and owns the blockchain DLT platform/consortium
utility grid participates in the blockchain DLT platform/ consortium
peers govern & participate in the blockchain DLT platform/ consortium
market
regulation
+
-
grid
loads/consumer/
prosumer
Tiers of Transactive Energy Blockchain/DLT Governance
Utilities can benefit from implementing Blockchain/DLT in tiers 1 and 2

IEEE Blockchain Transactive Energy Framework

Thank You!
Claudio Lima
clima@blockchain-eng.org
https://attend.ieee.org/bcte/

About the Speaker
Claudio Lima, Ph.D.
• Executive and thought leader in advanced blockchain, IoT, and AI technologies
• Expertise in energy (utilities, oil, and gas), smart city, and telecom/IT digital transformation
• Distinguished Member of Technical Staff at Sprint Advanced Technology Labs in Silicon Valley,
California.
• Co-founder of the Blockchain Engineering Council (BEC)
• Chair of IEEE Blockchain Transactive Energy (BCTE) Initiative
• Chair of the IEEE Blockchain Standards
• Chair IEEE P2418.5 Blockchain Energy WG
• Vice Chair IEEE P2418.1 Blockchain IoT WG
• Member ISO DLT for Power Standards
• PhD in Electronic Engineering, University of Kent (UK) (1995).
clima@blockchain-eng.org

IEEE Blockchain Transactive Energy_Claudio Lima (Aug 2022).pdf

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