More Related Content Similar to The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energy Providers? (20) The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energy Providers?1. What promises do blockchain
technologies offer energy providers?
The New
Energy Consumer
2. 2Copyright © 2017 Accenture All rights reserved.
Blockchain:
A technology game changer …
A blockchain is simply an open, distributed database that processes
transactions between anonymous contributors, without a central overseer.
Secure
Uses cryptographic
algorithms based on
private and public key
encryption.
Real-time
Blocks are verified and
added in near real time;
reduces arbitrage risk
or data-sync
problems.
Robust
Blockchain ledger is
replicated on servers
across the globe;
no single point
of failure.
Accessible
Open network; anyone
can add blocks and
review the entire
blockchain from
inception.
3. 3Copyright © 2017 Accenture All rights reserved.
…with the ability to address concerns in
privacy and permission management.
• Permission less –
anyone can use it
• “Proof“ consensus –
“Proof of Work” for Bitcoin
• Public nodes
• Cryptocurrency token
• Open wallet access/Internet
• Permissioned –
defined group can participate
• Custom consensus engine –
rules set by participators
• Private nodes – closed group
• Optional token
• Closed wallet access/virtual
private network
Public blockchain:
The Internet
Semi-private and
private blockchains:
Extranet and Intranet
4. 4Copyright © 2017 Accenture All rights reserved.
But why choose blockchain
instead of a traditional database?
Allows
disintermediation
from third party
trust entities
No central gatekeeper
is required to verify
transactions and
authenticate their source –
this is done independently
by multiple nodes.
Removes transaction
fees of intermediaries.
Multiple
contributors
can contribute
simultaneously
More than one contributor
can modify the database
at the same time, from
any locale. Blockchain
validates the transaction
and all contributors can
see the history of
exchanges.
Creates robust
redundancy,
no single
point of failure
If a node or contributor is
compromised, the rest of
the network remains
secure; single faults will not
break the system because
of multiple, disperse
backups with up-to-date
data.
Removes
dependency on
intermediaries and
promotes trust
among contributors
Each contributor
continuously audits the
ledger; consensus
structure reduces security
risks and penalizes those
that deviate from norms.
5. Is blockchain the answer to some of the challenges
energy providers face with traditional databases?
Distributed
energy resources
Settlements
and payments
Grid operations
and load management
Disintermediation
Lower external transactions
costs with banks, clearing
houses, and legal entities.
Accelerate settlement process
with meter-based collections
and decentralized billing.
Facilitate self-managing devices
and appliances.
Multiple contributors
Manage peer-to-peer energy
marketplace using grid as a
service model; facilitate micro-
transactions.
Develop new value-add offerings
for customers.
Reduce manual switching costs to
distributed energy resources.
Facilitate cross border
transactions between international
parties.
Robust redundancy
Ultra resilient system monitoring
for grid and infrastructure;
expedite outage resolution time.
Divert grid congestion to
alternative infrastructure to
balance loads automatically.
Share data between parties
securely across organizations and
international boundaries.
Open yet secure
Transparency across
transactions; reduce risk from
fraud, identity theft and service
tampering.
Enterprise-wide view of all
operations, removes
inefficiencies from siloed
transactions.
Manage collections/debt with
pre-payment metering
Yes it could, and in a secure and disruptive way.
6. 6Copyright © 2017 Accenture All rights reserved.
There are promises that blockchain offers today
to prepare energy providers for tomorrow...
• Enhanced current offerings
• New revenue streams
• Lower external transaction
costs
• Lower internal costs
Manage risk
& working
capital
• Reduced risk
• Improved working capital
Lower
costs
Increased
revenue
7. 7Copyright © 2017 Accenture All rights reserved.
I want my
home
appliances to
self manage
events
in real time.
I want to trade
solar power in
my community,
with the
assurance that
my payments
and exchanges
are secure.
I wish my
energy
provider
resolved
outages
faster without
needing to
dispatch the
field teams.
…and for the creation of a new customer journey
for the energy prosumer.
I want to have
access to
several energy
providers with
distributed
energy
resources, and
I would like to
alternate without
having to switch
myself.
I want to rent an
electric vehicle
for my commute
and I’d like to
look at new
payment
methods for this
service.
8. 8Copyright © 2017 Accenture All rights reserved.
But blockchain is not perfect and energy providers
need to be aware of the limitations to rapid adoption.
No standards
have emerged
for rates of
verification; delay
times are
inconsistent and
introduce
uncertainty in the
system.
Unclear if
integration value
with new
systems will
transfer to
customer or the
business; value
translation is
fragmented.
The regulatory
landscape tends
to assume
centralized trust
actors. Lack of
framework and
legal precedents,
with global
jurisdictions and
economies to
coordinate.
Sophisticated
analysts may
learn of the
transaction
patterns of the
players by
analyzing the
blockchain;
public blockchain
may not be ideal
for certain
industries.
Continued
maintenance
requires scare
technical skills;
still requires
assets and
infrastructure
to maintain
and upgrade.
Platform
provision and
immature;
unsure of the
long term
viability of the
technology and
the success of
delivery.
Variability in
adoption
Capital
expenditures
Regulatory
constraints
Privacy Ongoing
maintenance
Network
effect
9. 9Copyright © 2017 Accenture All rights reserved.
No one can predict the future energy consumer ecosystem
for certain; however, blockchain is triggering energy
providers to rethink the fundamentals of energy market
transactions and explore future opportunities.
10. 10Copyright © 2017 Accenture All rights reserved.
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