Energetica India Magazine nº88 March-April 2020

some important nuances to consider. There are private P2P trading systems, in which microgrid-connected owners of small-scale renewable generation sell their excess generation directly to microgrid-connected consumers us- ing pre-programmed “smart contracts” (stored on a blockchain) that automati- cally trigger transactions between sell- ers and buyers based on previously agreed-upon terms. But some utilities are also pursuing use cases that could eventually create a larger, grid-wide transactive market for electricity. This requires a decentralized transaction and supply system in which the valua- tion and settlement of electricity over time and location is fully automated via blockchain-enabled smart contracts, managing all of the electricity load over that grid. Distributed Energy Resource (DER) management : There are a number of potential use cases being evaluated by utilities in this area. Within a community microgrid, blockchain has the potential ability to automate the control of dis- tributed energy resources using smart contracts to agree upon the optimal re- sponse to a peak load event and ensure financial settlement conditions are met. Network security: Much has been writ- ten in recent years about the prolifera- tion of IoT sensors and devices on the grid, and the potential cybersecurity risks they might pose. Blockchain’s dis- tributed ledger technology and encryp- tion capabilities could provide authenti- cation records of IoT devices connected to the grid, making it much more difficult to counterfeit transactions or inputs into the system. Automate complex contracting Utilities engage with third-party provid- ers in numerous ways, from construction and field work to asset lifecycle manage - ment and more. Because the blockchain stores an unalterable record of every transaction across the network, it adds transparency and real-time trackability to multi-party, supply-chain processes. For example, in utility construction work, the use of blockchain technology could provide full traceability of the status of all parts ordered and services provided, all within the same system. This transparen- cy also provides auditable proof of both regulation compliance and the ways in which goods were sourced. While blockchain technology is not a solution for every utility business chal- lenge it certainly is showing some very promising possibilities. Ultimately, it’s not a matter of looking for a problem to which blockchain technology can be applied; rather, it’s a matter of understanding the areas within the utility’s business where blockchain can provide clear value. POWER SECTOR 47 energetica INDIA- March-April_2020