Mieterstrom, IoT & Blockchain (EN)

Next Big Thing AG

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Energy distribution: Networking and decentralization Mieterstrom Internet of Things Blockchain

BDEW Workshop 30.03.2017

Michael Maria Bommer Next Big Thing AG

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Current State: Energiewende

Impact of arising renewables: unpredictable and intermittent supply1

The prosumer phenomenon 2

Grid fragmentation: central network structure vs. cellular approach3

Interconnectivity of flexible grid structure 4


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Inefficiencies

→ Mieterstrom is the first step: Matching the locally produced solar energy with local consumption within an apartment building.

High volatile load on distribution networks: Energy has traditionally been produced to meet demand, in the context of renewable energy, demand and supply don’t always match.

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Energy Transmission: Transferring energy from where it’s produced to where it is needed.

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Ideal Scenario: Consumption of power when available

Smart Grids

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What is Mieterstrom?

→ On-site delivery of PV or cogeneration electricity, saving fixed price components apart from EEG apportionment:

→ Concept: a part of the electricity from eligible plant is sold to a tenant / commercial user behind “a counter” while saving charges and taxes

Concept

→ PV / cogeneration→ Customer Plant Operation (grid feeding)→ Power Supply (additional power)→ Measurement

Functions

The next step of decentralisation of the grid


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Why Mieterstrom?

→ Energy supply (PV+other energy sources), measurement and invoicing from one service provider

→ Service similar to energy suppliers for housing cooperatives and property owners

→ Tenants have a reduced electricity price (distribution margin, network charges, concession fee, grid apportionment, electricity tax)

→ Mieter haben einen reduzierten Strompreis (Vertriebsmarge, Netzentgelte, Konzessionabgabe, Netzumlagen, Stromsteuer)

Incentives for Customers

→ Other players might enter the market piggybacking on the Mieterstrom concept, but they are unable to provide the entire service alone

→ New opportunity to help housing associations to manage the new systems -> service

Incentives for Energy Providers


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IoT & Blockchain: tech development

→ Reduce capital expenditure→ Manage demand→ Increase renewable capacity→ Lower maintenance costs→ Comply with regulations→ Enhance customer engagement

2017: IoT is being steadily adopted in Smart Grid, but the solutions are fragmented and not connected

2020: Further adoption of IoT and initial consolidation around separate functions in a smart grid, no consolidation between actors

IoT

→ Cryptocurrencies→ Peer-to-peer lending→ Decentralised energy-transaction and supply system→ Decentralised energy-transaction and supply system,

supply of solar energy to developing countries→ Smart devices→ Solar power certificates

2017: All blockchain solutions are in the prototyping phase

2020: First blockchain-based transaction models

Blockchain

→ Shifting the roles of the energy market players


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1. The role performed by meter operators would change: they would no longer have to collect and record data themselves, as all consumption and transaction data would be exchanged automatically and accurately through blockchain technology (smart contracts).

2. Distribution system operators would also receive the information on transactions they require to charge their network costs to customers from the blockchain.

3. Transmission system operators would no longer require data for clearing purposes, as all transactions would be executed in real time and settled only on the basis of actual consumption.

Blockchain-based transaction modelAll electricity delivered to the networks can be clearly attributed to individual customers in small time units (down to time windows of only a few minutes)

Current market rolesMarket roles under a

decentralised transaction model (blockchain)


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Technology challenges: IoT & Blockchain

1. Complexity of cyber-physical system of energy generation (digital blockchain does not work) - two parallel systems - physical energy transfer and data/cryptocurrency digitally

2. Existing gap between IoT and blockchain

3. Security as an overall challenge for smart grid (on the hardware, firmware and connectivity layers)

4. Real time data processing and micro-transactions on the blockchain


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NR-GEN Vision

IoT DeviceTEE

Blockchain & Cloud

Payment routing

Automated transaction

Marketplace

Data storage, balance sheet management

Data collection → Date analysis → Trade & Invoicing

Trading operations


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Secure Smart Contracts Enabling Components

1. Secure communication protocol: MQTTS (MQTT + TLS)

2. Embedded secure IoT-TEE /Trusted Execution Environment/ (eg. Secure chip)

3. IoT device is not hackable (physical/cyber)

4. Secure Smart contracts: - Independent from any blockchain technology- Usage of RTA /Real Time attestation/ - sSC is enabled to

communicate its own safety status

Outcome:

1. Toolset for building own customized smart contracts2. Own marketplace with log in effect


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Use Cases: IoT + Blockchain + Mieterstrom1. Various players within the value chain, e.g.

decentral energy providers and energy buyers, communicate and trade with each other through their IoT devices, using a testified Smart Contract (tSC).

2. The tSC allows them to define their specific terms (e.g. selling requirements and buying conditions such as billing, time frame and ID).

3. Usage of an online marketplace to autonomously closed between the two trading IoT devices (e.g. solar panel and e-car).

Role of the energy company – management of smart contracts and serving customized services based on the

Traditional Processes

Processes in a blockchain-based

system

→ Role of the energy company – management of smart contracts and serving customized services.


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Michael-Maria Bommer Gründer [email protected]

Next Big Thing AG Tempelhofer Ufer 17, 10963 Berlin

www.nextbigthing.agBuilding the IoT world of tomorrow.