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GridExchange Platform
Blockchain backed Energy Transactions
September 25, 2019 Presented by: Abhinav Tiwari, Head of Advanced Planning, Alectra Utilities
2
Who is Alectra?
Alectra is an energy company that
distributes electricity and provides
innovative energy solutions to
customers in Ontario
Second largest municipally-owned
integrated energy solutions
company in North America
Over C$4.5 billion in assets
and 1,500 employees
Serving over 1 million
customers across 1,921 sq
kms
Two subsidiaries:
• Alectra Utilities: responsible for distributing electricity to residents and businesses
• Alectra Energy Solutions and Services: provides innovative energy solutions, such as microgrids, energy storage,
solar PV, metering, and street lighting
3
Green Energy and Technology (GRE&T) Centre
GRE&T Centre makes energy innovations come to life by identifying, evaluating, developing and deploying
emerging, green, and customer-friendly energy solutions across Alectra's service territory
Our core values
Safety Respect Customer Focus Excellence Innovation
focus on
emerging
technologies
Artificial Intelligence Blockchain Data Analytics Cloud Computing Robotics Process
Automation
preparing for
Energy
Solutions of
tomorrow
Advanced Planning Smart Cities Grid Innovation
Energy Technology
Accelerator
4
How the current landscape is changing
The electrical market is being transformed by many forces which requires a change in the way we operate today
Driving Forces coupled
with
Emergence of DERs requires a change in the way grid
is operated
Shift to Renewable Energy
Sources
• Address Climate
Change
• Changes in
consumption driven by
consumer electronics
• Electrification of
Transportation
• Increased engagement
of Customer ratepayers
+
DER Global Capacity: 132GW in 2017
and is expected to grow to 528GW by
2026
• Electric Vehicles: Half the cars sold in
2030 are expected to be electric
• Distributed Generation (largely Solar):
Cost is 1/5th to that in 2010, further
expected to drop by over 2/3rd by 2030
• Smart Thermostats: Customers
actively managing their energy usage
• Distributed Storage: Cost is 1/5th to
that in 2009, further expected to drop
by another 2/3rd by 2030
Transmission System
Operators
Distribution Network
Operators
Regulators /
Policy Makers
5
DERs – Benefits & Challenges
Challenges are largely driven by behind-the-meter DER installations not controlled by Utilities
Benefits to Consumers Challenges New ways to finding a potential
solution
Self-generation, local storage
and local resiliency
Cost-savings and energy
efficiency
Convenience and automation
Environmental and social
benefits
DERs, when not properly controlled such as in the case of
behind-the-meter installations, could bring unintended
negative impacts on grid stability
EVs, especially due to its clustered density and coincidental EV
charging places enormous strain on the grid, brings a high
likelihood of causing grid congestion and reduces the overall
life of distribution system assets
Excess volumes of solar generation are beginning to create
overvoltage conditions that generate excessive heat and
threaten the stability of distribution infrastructure
Consumers are expecting more active engagement with their
utility over traditional one-way ratepayer/energy supplier
relationship
Traditional strategy to build more
infrastructure is discouraged by
regulators and policymakers to:
• lower environmental impact and
• ratepayer’s reticence to paying
higher electrical bills
6
GridExchange Platform
Alectra’s approach for Transactive Energy Platform
Secondary
Participants
Payments Provider
Contract
Counterparty
Residential
Customer
Bill Payees
Merchants
Platform Operator
Contract
Counterparty
Control Agent
Metering Agent
Settlement
Provider
Exchange
Provider
Market
Operator
Primary Participants
A software platform to facilitate a
wholesale ⟷ distribution ⟷ end
user marketplace for energy
products, including contracting,
delivery, and settlement, based on
enterprise blockchain technology
Blockchain based transaction
management enables smart
procurement, contracting,
verification and settlement of
services for different participants
and stakeholders
7
GridExchange Services
In the pilot phase, GridExchange will enable three major market services
•Reduce load on transformers
serving residential customers by
limiting the rate of charge for
electric vehicle charging stations
according to user tolerance and
propensity to earn rewards
Managed
EV Charging
•During times in which the energy
supply from large-scale generation
within a jurisdiction has a greater
proportional dependence on fossil-
fuel burning sources, encourage
households to prioritize usage of
solar to meet residential load
requirements (even if not
traditionally economically optimal)
CO2
Reduction
•Allow homeowners to leverage
battery storage capacity to
participate in scheduled demand-
response programs
Demand
Response
8
Data Analytics & Governance at its core
GridExchange is backed by robust Data Management and Governance services to enable Advanced Analytics
while keeping it’s commitment to Data Security and Customer Privacy
Consumers/Users
Analytical / Data
Mining
Data Extracts
Ad-Hoc Analysis
Apps
Visualizations
Service
Interface
Layer
Data Storage & Warehousing
Physical Data Storage
Off-chain DB & Analytical Storage
Data Warehouse Domain Centric Datasets
Advanced Analytics
Data Discovery / Mining
Analytics
Workflows
Reusable
Components
DA Tools
Deep Learning
Statistical
Learning
Machine
Learning
Data Ingestion & Processing
Data Ingestion
Transformation
Data / Metadata
Batch & Ad-Hoc
ETL & Parsing
Data Quality
Metadata Ingestion
Platform Governance and Security
Data &
Metadata
Catalog
BI / Reporting
Streaming
Remodelling
API
Services
9
GridExchange benefits
For End-User and Contract Counterparties
End-Users Improved resilience and reliability towards outages
Cost savings due to their energy contributions to the grid
Better control over their energy assets providing a better sense of ownership over their assets
Ability to make more informed decisions regarding energy contributions based on aggregated & localized recommendations
Earn rewards to obtain value-added services with respect to the positive change in their behavior for energy contribution
Increased transparency by having access to information about their energy consumption/generation (renewables vs fossil)
Become a contributor towards the global initiatives around reducing GHG and carbon footprint
Contract Counterparties Improving customer trust by providing customers full transparency & control over their energy assets, contribution, helping optimize
their energy participation and cost benefits
Reducing overall cost for entire customer base towards their energy consumption
Obtaining benefits around deferring capital and operating expenditures associated with infrastructure upgrades, planning, and grid
resource balancing
Improved visibility towards the changing market and DER penetration to better inform network planning decisions
Empowering customers by enabling them to participate in larger energy demand response needs. Further, empowering them to become
part of larger global initiatives towards reducing GHG and Carbon footprint
10
Market Operators Increased visibility over the network to help achieve improved decision making towards immediate demand response requirements.
Ability to gain a view into the DER landscape in the region that was not previously available
Improved decision making towards longer-term energy needs resulting in infrastructure upgrades due to overall improved visibility.
Further helps in infrastructure upgrade deferral in cases of significant increase in DER penetration
Ability to optimize the energy supply and gain access to cost effective demand response capacity in the wholesale market by
leveraging aggregated DERs
DERMs/ADMS
technology providers
&
Corporate partners
Opportunity to integrate to a larger ecosystem of multiple utilities and technology partners
Opportunity to increase their customer base and increase revenues by participating in new markets and gain access to industry
analytics which will improve the efficiency of their planning and targeting. As a result, they will have greater opportunities to
generate new value propositions and be much more agile in responding to market needs
Ability to improve their platform, models and overall technology through access to cross-functional data and learnings
Corporate Partners specifically will have an additional benefits to band value augmentation through association with efficient energy.
They will get low cost access to customers of their products
GridExchange benefits
For Market Operators, Technology Providers and Corporate Partners
11
Key factors to success
There are many different external factors which could impact the success of Transactive Energy market
•DER growth accelerates and continues
•Incentives for utilities to use non-wire alternatives become compelling and common
•Regulatory changes increasingly allowing the utilities to control customer owned DERs
•DER aggregators and ADMS/SCADA vendors align to interoperable interface standards
•Utilities can enroll DER owners onto the network quickly and easily
•Corporate and financial partners keep supporting the development of the ecosystem
•New use-cases emerge to improve stakeholder buy-in and customer trust
12
Q&A
Thank you!
September 25, 2019 Presented by: Abhinav Tiwari, Head - Advanced Planning, Alectra Utilities

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Case Study: Blockchain as the Foundation of Alectra's Grid Exchange Transactive Energy Platform

  • 1. 1 GridExchange Platform Blockchain backed Energy Transactions September 25, 2019 Presented by: Abhinav Tiwari, Head of Advanced Planning, Alectra Utilities
  • 2. 2 Who is Alectra? Alectra is an energy company that distributes electricity and provides innovative energy solutions to customers in Ontario Second largest municipally-owned integrated energy solutions company in North America Over C$4.5 billion in assets and 1,500 employees Serving over 1 million customers across 1,921 sq kms Two subsidiaries: • Alectra Utilities: responsible for distributing electricity to residents and businesses • Alectra Energy Solutions and Services: provides innovative energy solutions, such as microgrids, energy storage, solar PV, metering, and street lighting
  • 3. 3 Green Energy and Technology (GRE&T) Centre GRE&T Centre makes energy innovations come to life by identifying, evaluating, developing and deploying emerging, green, and customer-friendly energy solutions across Alectra's service territory Our core values Safety Respect Customer Focus Excellence Innovation focus on emerging technologies Artificial Intelligence Blockchain Data Analytics Cloud Computing Robotics Process Automation preparing for Energy Solutions of tomorrow Advanced Planning Smart Cities Grid Innovation Energy Technology Accelerator
  • 4. 4 How the current landscape is changing The electrical market is being transformed by many forces which requires a change in the way we operate today Driving Forces coupled with Emergence of DERs requires a change in the way grid is operated Shift to Renewable Energy Sources • Address Climate Change • Changes in consumption driven by consumer electronics • Electrification of Transportation • Increased engagement of Customer ratepayers + DER Global Capacity: 132GW in 2017 and is expected to grow to 528GW by 2026 • Electric Vehicles: Half the cars sold in 2030 are expected to be electric • Distributed Generation (largely Solar): Cost is 1/5th to that in 2010, further expected to drop by over 2/3rd by 2030 • Smart Thermostats: Customers actively managing their energy usage • Distributed Storage: Cost is 1/5th to that in 2009, further expected to drop by another 2/3rd by 2030 Transmission System Operators Distribution Network Operators Regulators / Policy Makers
  • 5. 5 DERs – Benefits & Challenges Challenges are largely driven by behind-the-meter DER installations not controlled by Utilities Benefits to Consumers Challenges New ways to finding a potential solution Self-generation, local storage and local resiliency Cost-savings and energy efficiency Convenience and automation Environmental and social benefits DERs, when not properly controlled such as in the case of behind-the-meter installations, could bring unintended negative impacts on grid stability EVs, especially due to its clustered density and coincidental EV charging places enormous strain on the grid, brings a high likelihood of causing grid congestion and reduces the overall life of distribution system assets Excess volumes of solar generation are beginning to create overvoltage conditions that generate excessive heat and threaten the stability of distribution infrastructure Consumers are expecting more active engagement with their utility over traditional one-way ratepayer/energy supplier relationship Traditional strategy to build more infrastructure is discouraged by regulators and policymakers to: • lower environmental impact and • ratepayer’s reticence to paying higher electrical bills
  • 6. 6 GridExchange Platform Alectra’s approach for Transactive Energy Platform Secondary Participants Payments Provider Contract Counterparty Residential Customer Bill Payees Merchants Platform Operator Contract Counterparty Control Agent Metering Agent Settlement Provider Exchange Provider Market Operator Primary Participants A software platform to facilitate a wholesale ⟷ distribution ⟷ end user marketplace for energy products, including contracting, delivery, and settlement, based on enterprise blockchain technology Blockchain based transaction management enables smart procurement, contracting, verification and settlement of services for different participants and stakeholders
  • 7. 7 GridExchange Services In the pilot phase, GridExchange will enable three major market services •Reduce load on transformers serving residential customers by limiting the rate of charge for electric vehicle charging stations according to user tolerance and propensity to earn rewards Managed EV Charging •During times in which the energy supply from large-scale generation within a jurisdiction has a greater proportional dependence on fossil- fuel burning sources, encourage households to prioritize usage of solar to meet residential load requirements (even if not traditionally economically optimal) CO2 Reduction •Allow homeowners to leverage battery storage capacity to participate in scheduled demand- response programs Demand Response
  • 8. 8 Data Analytics & Governance at its core GridExchange is backed by robust Data Management and Governance services to enable Advanced Analytics while keeping it’s commitment to Data Security and Customer Privacy Consumers/Users Analytical / Data Mining Data Extracts Ad-Hoc Analysis Apps Visualizations Service Interface Layer Data Storage & Warehousing Physical Data Storage Off-chain DB & Analytical Storage Data Warehouse Domain Centric Datasets Advanced Analytics Data Discovery / Mining Analytics Workflows Reusable Components DA Tools Deep Learning Statistical Learning Machine Learning Data Ingestion & Processing Data Ingestion Transformation Data / Metadata Batch & Ad-Hoc ETL & Parsing Data Quality Metadata Ingestion Platform Governance and Security Data & Metadata Catalog BI / Reporting Streaming Remodelling API Services
  • 9. 9 GridExchange benefits For End-User and Contract Counterparties End-Users Improved resilience and reliability towards outages Cost savings due to their energy contributions to the grid Better control over their energy assets providing a better sense of ownership over their assets Ability to make more informed decisions regarding energy contributions based on aggregated & localized recommendations Earn rewards to obtain value-added services with respect to the positive change in their behavior for energy contribution Increased transparency by having access to information about their energy consumption/generation (renewables vs fossil) Become a contributor towards the global initiatives around reducing GHG and carbon footprint Contract Counterparties Improving customer trust by providing customers full transparency & control over their energy assets, contribution, helping optimize their energy participation and cost benefits Reducing overall cost for entire customer base towards their energy consumption Obtaining benefits around deferring capital and operating expenditures associated with infrastructure upgrades, planning, and grid resource balancing Improved visibility towards the changing market and DER penetration to better inform network planning decisions Empowering customers by enabling them to participate in larger energy demand response needs. Further, empowering them to become part of larger global initiatives towards reducing GHG and Carbon footprint
  • 10. 10 Market Operators Increased visibility over the network to help achieve improved decision making towards immediate demand response requirements. Ability to gain a view into the DER landscape in the region that was not previously available Improved decision making towards longer-term energy needs resulting in infrastructure upgrades due to overall improved visibility. Further helps in infrastructure upgrade deferral in cases of significant increase in DER penetration Ability to optimize the energy supply and gain access to cost effective demand response capacity in the wholesale market by leveraging aggregated DERs DERMs/ADMS technology providers & Corporate partners Opportunity to integrate to a larger ecosystem of multiple utilities and technology partners Opportunity to increase their customer base and increase revenues by participating in new markets and gain access to industry analytics which will improve the efficiency of their planning and targeting. As a result, they will have greater opportunities to generate new value propositions and be much more agile in responding to market needs Ability to improve their platform, models and overall technology through access to cross-functional data and learnings Corporate Partners specifically will have an additional benefits to band value augmentation through association with efficient energy. They will get low cost access to customers of their products GridExchange benefits For Market Operators, Technology Providers and Corporate Partners
  • 11. 11 Key factors to success There are many different external factors which could impact the success of Transactive Energy market •DER growth accelerates and continues •Incentives for utilities to use non-wire alternatives become compelling and common •Regulatory changes increasingly allowing the utilities to control customer owned DERs •DER aggregators and ADMS/SCADA vendors align to interoperable interface standards •Utilities can enroll DER owners onto the network quickly and easily •Corporate and financial partners keep supporting the development of the ecosystem •New use-cases emerge to improve stakeholder buy-in and customer trust
  • 12. 12 Q&A Thank you! September 25, 2019 Presented by: Abhinav Tiwari, Head - Advanced Planning, Alectra Utilities