A short presentation illustrating the key challenges in renewable energy and how Mieterstrom, IoT & Blockchain may provide a solution...

1. Next Big Thing
AG
1
Energy distribution:
Networking and decentralization
Mieterstrom
Internet of Things
Blockchain
BDEW Workshop
30.03.2017
Michael Maria Bommer
Next Big Thing AG

2. Next Big Thing
AG
Next Big Thing
AG
2
Current State: Energiewende
Impact of arising renewables: unpredictable and intermittent
supply
1
The prosumer phenomenon2
Grid fragmentation: central network structure vs. cellular
approach
3
Interconnectivity of flexible grid structure4

3. Next Big Thing
AG
Next Big Thing
AG
3
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.
1
Energy Transmission: Transferring energy from where it’s produced
to where it is needed.
2
Ideal Scenario: Consumption of power when available
Smart Grids

4. Next Big Thing
AG
Next Big Thing AG 4
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

5. Next Big Thing
AG
Next Big Thing
AG
5
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

6. Next Big Thing
AG
Next Big Thing
AG
6
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

7. Next Big Thing
AG
Next Big Thing
AG
7
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 model
All 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 roles
Market roles under a
decentralised transaction
model (blockchain)

8. Next Big Thing
AG
Next Big Thing
AG
8
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

9. Next Big Thing
AG
Next Big Thing
AG
9
NR-GEN Vision
IoT Device
TEE
Blockchain & Cloud
Payment routing
Automated
transaction
Marketplace
Data storage, balance
sheet management
Data collection → Date analysis
→ Trade & Invoicing
Trading operations

10. Next Big Thing
AG
Next Big Thing
AG
10
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 contracts
2. Own marketplace with log in effect

11. Next Big Thing
AG
Next Big Thing
AG
11
Use Cases: IoT + Blockchain + Mieterstrom
1. 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.

12. Next Big Thing
AG
Next Big Thing
AG
12
Michael-Maria Bommer Gründer
michaelmaria.bommer@nbt.ag
Next Big Thing AG
Tempelhofer Ufer 17, 10963 Berlin
www.nextbigthing.ag
Building the IoT world of tomorrow.