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From YouTube: Transactive Energy Frameworks for Smart Power Grids
Description
A presentation from Shivam Saxena at the Hyperledger Toronto meetup on December 7, 2019 about using the Hyperledger Fabric framework to design and develop a permissioned blockchain network that utilizes smart contracts to validate short-term energy contracts between utilities and asset owners, ultimately enabling seamless trust among all participants within the network.
More details about the meetup can be found at: https://www.meetup.com/Hyperledger-Toronto/events/266765758/
----
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A
Everything,
good,
hey,
wonderful,
blockchain,
okay,
thank
you!
So
much
for
coming
out
wasn't
expecting
this
kind
of
turnout.
Try
to
get
my
wife
to
come
out
even
she
said.
No,
so
thank
you
so
much
for
sacrificing
your
Saturday
afternoon
to
be
with
us.
My
name
is
Shivan
Saxena
I'm,
a
professional
engineer
registered
here
in
the
province
of
Ontario,
and
it's
just
such
a
pleasure
to
be
here
with
you
today
talking
about
one
of
my
passions,
which
is
smart
power
grids
and
clean
energy.
A
So
I'm
here
to
share
this
knowledge
with
you
today,
as
well
as
how
we
can
merge
blockchain
applications
with
this
application
as
well.
So
quick
shout
out
to
the
blockchain
lab.
We've
got
Professor
Henry,
Kim
and
Marik
in
the
house.
A
quick
email
in
2017
to
the
blockchain
lab
enabled
this
type
of
collaboration
at
that
point.
I
didn't
know
anything
about
blockchain.
A
Even
now,
my
knowledge
of
blockchain
is
relatively
limited,
but
thanks
to
these
gentlemen
for
equipping
me
with
the
right
knowledge
and
the
tools
to
go
out
and
implement
a
project
such
as
this
to
have
a
real-world
implementation
for
a
blockchain
enabled
power
system.
So,
thank
you
so
much
the
blockchain
lab,
as
well
as
York
University
I'm
under
the
supervision
of
dr.
Hannah
frog
who's.
My
PhD
supervisor
got
two
gentlemen
from
his
lab
here
as
well
today.
A
A
Then
we're
going
to
try
to
relate
the
needs
of
the
current
smart
grids
with
how
blockchain
can
solve
certain
business
cases
and
certain
problems
that
smart
grid
operators
are
facing
and
then
we're
going
to
get
into
the
case
study
of
how
we
implemented
a
blockchain
based
transactive,
transact
of
energy
system
in
a
real
world
Vaughn
micro
grid.
Okay.
A
So
before
I
get
into
me,
I
just
want
to
get
a
quick
profile
of
the
room.
How
many
people
are
aware
of
how
energy
flows
from
power
stations
to
your
door?
So
some
we've
got
to
phd's
in
the
house
that
can
help
me,
okay,
perfect,
so
I'm
going
to
proceed
at
a
relatively
medium
pace.
Tim
I've
got
40
minutes.
A
Okay,
all
right
I
try
to
keep
the
the
time
going
all
right.
Yes,
so
a
little
bit
about
me.
I
am
the
systems
architect
and
CEO
of
a
company
called
here
engineering
I
founded
in
2015,
so
we're
into
our
fifth
year.
Our
mission
statement
is
take
the
fight
to
climate
change
and
we
do
that
by
developing
products
and
doing
research
in
clean
tech
and
particularly
Smart
Grid
applications.
A
So,
as
you
know,
the
world
of
distributed
energy
resources
is
exploding,
people
are
getting
it:
solar,
energy,
electric
vehicles
and
batteries
and
all
these
things
are
causing
problems
at
the
grid
edge.
We're
gonna
review
that
in
a
couple
of
slides,
but
there
is
software,
that's
needed
to
coordinate
the
objectives
of
you
as
the
owner
of
those
de
RS,
with
real
time
constraints
that
grid
operators
actually
have.
A
So
this
is
the
industry
and
application
that
we
work
in
okay
and
passionate
about
the
environment,
passionate
about
electric
power
grids
and
I'm,
not
coding,
I'm,
usually
playing
sports,
as
I
mentioned
earlier
in
my
second
year
of
my
PhD
as
well.
So
there's
a
lot
going
on.
So
this
is
a
slide.
I
try
to
try
to
use
in
all
of
my
presentations.
This
is
really
the
end
game.
This
is
the
biggest
business
case
of
all
climate
change.
We
have
to
get
our
act
together.
A
Every
single
one
of
us
in
this
room:
okay,
power
generation,
transmission
and
distribution
accounts
for
upwards
of
30%
of
all
carbon
emissions,
and
we
know
that
carbon
emissions
is
the
major
driver
of
climate
change
and
all
the
extreme
outages
or
the
weather
events
that
are
happening
over
the
last
couple
years
are
indicative
of
this,
whether
it's
atmospheric
pollution,
cyclones
sea
level
rise.
All
these
things
are
related
to
climate
change,
and
we
everybody
in
this
room
and
all
the
politics
and
everybody
across
the
world
is
responsible
for
this.
A
Okay
power
systems
or
energy
systems
are
particularly
vulnerable
because
they're
centralized
in
nature
right:
hurricane
sandy,
Toronto
floods,
wherever
cyclones
are
coming
through
the
world,
we
leave
people
without
power
and
when
we
leave
people
without
power,
all
productivity
stops.
So
in
the
US
alone,
power
related
outages
cost
over
10
billion
dollars
annually
in
terms
of
economic
development
sustainability.
A
A
Now
a
little
bit
of
review
for
power
systems.
Power
systems
are
divided
into
three
general
components:
generation,
transmission
and
distribution:
the
generation
we
have
centralized
power
plants,
mainly
coal,
nuclear,
natural
gas,
these
humongous
power
systems.
We
take
the
power,
we
step
it
up
the
voltage,
and
then
we
go
across
to
very,
very
long
distance
transmission
lines.
Then
it
gets
set
down
into
these
things
called
distribution
feeders.
So
you
might
see
them
above
on
your
house,
see
the
distribution
lines.
A
But
what
I
want
you
to
take
away
from
this
slide
is
that
it's
very
centralized
in
nature,
any
one
attack
or
any
one
outage
on
any
one
of
these
interconnected
systems,
and
we
have
a
big
problem
today.
We're
gonna
be
talking
mostly
about
distribution
systems,
because
that's
where
you
and
I
are
connected
at
the
end
of
the
line.
A
Now
we
can
forget
about
all
the
main
terminology
with
the
main
takeaway
I
want
you
to
take
from
this
slide
and
distribution
systems
is
that
we
exist
all
the
way
at
the
end
as
end
consumers
and
power
flow
is
unidirectional
all
the
way
from
the
utility,
your
local
distribution
company.
If
we
live
in
Toronto,
extraña,
hydro,
Vaughn
and
you
have
Elektra
the
person
actually
the
the
company
that
gives
you
your
energy
bill.
That's
your
distributor
this!
That's
your
distribution,
utility
provider,
okay,
power
flows
from
their
substation
to
you,
unidirectionally!
That's
generally,
how
things
go?
A
Okay,
now
one
of
the
big
problems
for
we
call
them
Dino's
distribution
network
operators.
Is
these
feeders
these
primary
feeders?
Now
these
feeders?
If
you
imagine,
like
the
401
s,
traffic
right,
there's
a
certain
capacity
of
traffic,
it
can
take
it's
the
same
thing
with
power
systems
that
distribution
feeder
can
only
take
a
certain
amount
of
power
flow.
So
when
there's
too
much
load
by
us
at
the
end
of
the
lines,
traffic
stops
and
what
I
mean
by
traffic
is
power.
A
Active
power
actually
stops
and
that
feeder
gets
congested
similar
to
how
the
401
gets
congested.
Okay.
Now,
when
that
happens,
bad
things
start
happening.
A
lot
of
heat
accumulates
in
those
distribution,
feeders
we
get
power
losses
and,
more
importantly,
the
quality
of
power
that
we
have
at
the
end
of
the
line
starts
to
go
down.
Lights,
lights,
lights
start
to
flicker,
maybe
if
you
have
a
cottage
and
a
heat
pump
stops
working.
So
we
have
all
these
issues
when
there's
too
much
congestion
on
the
feeder.
A
Now,
usually,
distribution
network
operators
do
knows
they
sit
in
the
control
room.
They've
got
20
24/7
operation.
They
have
three
main
objectives.
One
reduce
peak
demand
to
avoid
that
feeder
congestion
I
just
talked
about
okay.
That
usually
only
happens
three
to
four
days
a
year,
usually
in
the
summer
when
it's
extremely
hot,
outside
and
everybody's
got
their
AC
cranked
to
the
max
okay.
So
we
want
to
reduce
that
peak
demand.
That's
really
their
only
motivation
in
life,
it's
all
they
care
about.
Okay.
A
Second,
we
want
to
reduce
green
house
green,
green
Jay,
cheese,
greenhouse
gas
emissions
by
limiting
power
generation
of
dirty
sources.
So
sometimes
when
the
congestion
is
at
its
peak,
if
a
utility
has
a
natural
gas
generator,
they'll
actually
turn
it
on
it's
very
quick
acting
and
that
feeds
local
power
to
sources.
It
takes
some
of
the
congestion
off
the
line.
It's
like
if
somebody
built
a
little
freeway
to
a
freeway
on
the
401
and
allow
traffic
to
flow,
that's
pretty
much
what
it
does.
Okay,
but
really
to
summarize.
A
A
This
is
supposed
to
be
a
solar
panel.
Sorry
guys,
you
got
cut
off
in
the
Google
transmission,
but
now
there's
this
new
resources
called
distributed
energy
resources
and
we
all
know
them
and
we're
all
familiar
with
them:
solar
panels,
energy
storage
systems,
electric
vehicles
and
smart
loads.
What
I
mean
by
smart
lows
are
those
Google
nests
in
your
home
that
allow
you
to
remotely
control
how
much
energy
you
want
for
your
eating
systems.
Those
are
smart
loads
and
all
these
resources
can
really
help
us
and
the
power
systems
manage
that
peak
demand.
A
So
that
way,
we
can
shift
that
peak
demand
same
thing
with
electric
vehicles
right
when
we
use
electric
vehicles,
we
can
really
limit
the
amount
of
greenhouse
gases
that
are
caused
by
patrol
or
diesel
or
gasoline,
whatever
the
fuel
mixes.
Okay.
So
these
d
ers
are
really
instrumental
in
making
the
smart
grid
and
actual
smart
grid.
The
grid
that
we
have
today
is
still
a
legacy
grid.
It's
not
that
intelligent,
there's,
not
a
lot
of
communication
going
on
between
the
dno
and
you
you'll
get
a
bill
at
the
end
of
the
month,
and
that's
it.
A
A
They
also
want
to
have
decentralized
type
of
applications
when
there's
an
outage
in
the
main
grid,
and
you
can
use
your
resources
to
island
away
and
make
community
of
your
own.
So
these
are
flexible
ways
in
which
a
smart
card
can
go
and
really
satisfy
those
operational
objectives
that
I
talked
about
earlier.
A
Most
important
is
the
third
point
we
want
bi-directional
power
and
communication
flow
right
right
now.
It's
just
a
utility
talking
to
you
once
a
month,
but
what
we
should
be
able
to
do
is
say:
hey
as
a
community.
We
have
excess
solar.
Do
you
need
it
who
needs
it
right
now?
Can
we
inject
it
to
the
grid?
Can
we
get
a
good
price
on
it?
Can
we
sell
energy?
Can
we
sell
services
to
the
grid?
A
That's
the
way
it
should
be,
but
it's
not
like
that
right
now,
as
always,
there's
big
problems,
though:
okay,
when
we
have
D
ers
on
the
grid
and
they're
uncontrolled,
they
cause
lots
of
issues.
So
this
graph
on
the
left
hand,
side
is
actual
real
world
measurements
of
the
micro
grid
that
we
work
at.
It's
called
the
Vaughn
micro
grid,
see
the
red
line,
there's
something
called
voltage
and
power
systems.
Voltage
is
the
lifeblood
of
a
power
system.
It
needs
to
be
in
between
this
area.
A
Okay
voltage.
Essentially,
if
you
have
a
pipe
like
this
and
water
is
flowing
through
it,
the
rate
that
the
water
flows
through
is
like
current,
but
the
actual
impedance
of
the
potential
energy
to
take
that
water
all
the
way
through.
That's
voltage,
it's
the
juice
in
the
line
that
actually
pushes
that
power.
So
if
there's
too
much
voltage
in
too
much
juice,
there's
excess
heat
and
your
entire
transformer
infrastructure
could
melt.
It
actually
causes
a
lot
of
power
losses
as
well.
A
We
operate
in
the
summer,
eighty
percent
over
this
mark
and,
as
a
result,
our
distribution
infrastructure
has
actually
melted.
So
two
years
ago
there
was
a
heat
warning,
35.5
degrees,
Celsius
we
reached
on
that
day,
the
side
of
our
transformer
actually
melted.
So
there's
a
real-world
problem
here
that
we
faced.
Second,
is
electric
vehicles.
There
is
an
experiment
done
in
Sacramento,
people
are
rich
there.
Apparently,
in
an
affluent
neighborhood,
there
is
a
in
one
community
out
of
eight
houses.
A
Six
of
them
had
electric
vehicles
they
all
plugged
in
at
the
same
time,
and
did
three
four
week
measurements.
You
see
that
line
the
red
line,
30,
that's
the
maximum
power
that
that
feeder
can
take
and
they
tripled
it
overnight,
because
everybody's
plugged
in
at
the
same
time
and
their
estimate
is
because
of
that
in
the
city
of
Sacramento,
they
have
to
spend
1.5
million
dollars
to
upgrade
all
their
transformers
to
handle
all
the
capacity
charging
electric
vehicles.
So
now
we
see
all
this
uncontrolled
operation
really
effects
power
system.
Operators.
A
Ok
remember
this:
this
is
the
legacy
grid.
Power
flow
is
unidirectional.
Now
this
is
happening
at
the
end
of
the
line.
We
are
no
longer
end.
Consumers
we're
something
called
prosumers.
We
have
D
ers,
we
have
solar,
we
have
electric
vehicles
and
we're
taking
power
and
we're
injecting
it
back
into
the
grid,
and
this
is
precisely
the
juncture
where
the
utility,
the
dno
it
doesn't
have
communication
and
control
infrastructure
because
they
never
ever
envisioned
that
this
would
happen
right
50
years
ago,
the
price
of
solar
is
2,000
percent.
A
A
Here's
the
biggest
challenge,
those
de
are
zoned
by
you:
I,
don't
have
an
electric
vehicle
at
this
point
in
my
life,
maybe
one
day,
but
maybe
somebody
does
here.
People
have
solar.
This
is
not
controlled
by
the
utility,
it's
controlled
by
you
and
your
objectives
and
the
DNS
objectives
are
different
right.
Your
objective
is
to
generate
as
much
revenue
as
you
can
from
your
DVR
because
they're
expensive
right.
If
you
have
a
roof
right
now,
standard
roof,
maybe
1500
square
foot
house.
A
Can
somebody
tell
me
or
guess,
if
I
want
to
outfit
my
with
solar
and
provide
maybe
ten
kilowatts?
How
much
does
that
cost?
The
total
installation
start
the
bottom?
Yes,
very,
close
yeah
$24,000
a
lot
of
money
right,
so
you
want
to
recoup
that
investment
as
soon
as
possible.
So
you
want
to
take
the
power
that
you
have
and
inject
it
into
the
grid
and
get
paid
for
that.
But
if
there's
too
much
power
and
too
less
demand,
we
get
those
voltage
problems
that
we
were
talking
about
right.
A
A
Decentralization
needs,
trust
right,
so
the
responsibility
of
a
safe
and
reliable
power
grid.
That's
not
just
the
Dinos
responsibility
anymore.
It's
actually
ours
too,
because
we're
part
of
that
problem
right
so
transactive
energy
is
all
about
hey.
Can
I,
as
a
dno,
can
I
incentivize
you
with
the
electric
vehicles
to
maybe
not
charge
at
peak
times
or
maybe,
if
I
have
a
battery?
Can
I
ask
you
to
discharge
it
when
I'm
in
trouble
and
I'll
pay
you
for
your
time
and
I'll
pay
you
for
your
services.
This
is
transactive
energy.
A
Fundamentally,
the
combination
of
economic
and
control
techniques
to
improve
grid
reliability,
it's
about
creating
a
marketplace
that
we
can
all
exist
in
together.
Any
questions
so
far
clear
all
right.
What
are
the
ethos
of
TEF
transactive
energy
frameworks?
Number
one:
high
coordination,
ok,
one
of
the
issues
like
we
saw
in
the
slides
with
solar
is
that
it's
very
intermittent
right.
We
have
solar
dens,
our
shading,
and
it
goes
down
even
with
wind,
sometimes
there's
wind,
sometimes
there's
not
causes
a
lot
of
intermittent
scene.
A
So
when
we
go
when
you
try
to
depend
on
more
than
30
percent
solar
in
the
grid,
bad
things
start
to
happen
right.
So
we
need
high
coordination
of
all
these
resources
to
follow
those
generational
patterns.
I'm
going
to
slip
ahead
to
point
number
four
shortly.
We
should
maintain
system
reliability
at
all
times.
That's
obvious,
but
since
here
we're
talking
about
hyper
ledger
and
blockchain
I
want
you
to
focus
on
points
two
and
three,
and
specifically
the
bolded
ones.
Non-Discriminatory
participation
of
all
users
number
three
observable
auditable,
accountable,
metrics
of
participation.
A
Okay,
so
before
we
get
into
blockchain
as
a
solution,
I
want
to
point
out
that
transactive
energy
is
not
new,
whose
first
coin
in
about
2010
there
have
been
solutions
out
there,
both
decentralized
IOT
based
and
centralized
that
have
tried
to
solve
this
problem
with
varying
degrees
of
success.
How
many
people
know
about
the
brooklyn
micro
grid?
Some
people
right
good,
the
brooklyn
micro
grid,
is
about
at
that
time.
It
was
about
two
neighborhoods
one
with
solar
panels,
one
without
and
they
implemented
a
peer-to-peer
based
trading
system
right.
A
So
there
have
been
many
IOT
based
systems
like
that,
where
you
can
trade,
your
energy
back
and
forth,
okay,
but
the
biggest
problem
in
non
blockchain
based
solutions
is
how
do
you
verify
those
transactions
actually
happen
right
because
in
peer-to-peer
there's,
no
central
database
that
people
that
can
actually
access?
You
need
to
have
history,
and
for
you
to
expose
your
history
that
everybody
causes
a
lot
of
audibility
issues.
So
that's
one
reason
it
hasn't
gained
any
traction.
A
A
A
In
general,
why
do
we
use
block
chains,
block
chains
in
our
case,
in
the
transactive
energy
case?
It's
used
when
a
group
of
peers
must
work
together,
but
they
do
not
necessarily
trust
each
other.
We
like
to
call
it
a
shared
business
network
right.
So
what
is
blockchain?
It's
basically
a
distributed,
shared
ledger
right,
it's
a
ledger
where
there's
a
mass
of
data
and
everybody
in
the
room.
A
Let's
say
we're
all
part
of
this
blockchain
we're
all
validating
the
transactions
that
go
on
to
those
Ledger's,
so
there's
consensus
based
mechanisms
to
make
sure
that
all
data
going
in
and
out
and
the
actions
taking
on
the
data
is
true
and
verifiable.
Second,
is
automation,
there's
actual
code
that
lives
in
the
blockchain
called
Smart
contracts
that
can
take
action
on
that
data
and
make
decisions
for
you
an
automated
way.
That's
what
block
tunes
are
according
to
my
understanding,
okay,
so
how
does
blockchain
actually
solve
issues
that
we
encountered
in
the
previous
slide?
A
The
shared
ledger
concept
provides
a
single
point
of
truth,
because
peers
are
verifying
those
transactions
with
each
other
based
on
consensus,
okay
and
as
a
dno.
That's
the
biggest
thing
at
the
end
of
the
day
when
they
do
their
accounting,
they
need
to
know
where
energy
came
from
where
it
went
what
the
losses
were,
and
we
now
that
we're
part
of
this
ecosystem.
We
need
to
know
that
as
well.
So
blockchain
is
a
good
way
to
provide
consensus
on
that.
A
Second
is
in
some
block
chains.
You
can
actually
provide
readwrite
mechanisms
on
the
data
you're
posting
to
the
ledger,
so
that
solves
some
problems
when
it
comes
to
privacy
in
particular,
gdpr,
which
specifies
the
right
to
be
forgotten.
So,
if
I've
entered
into
a
framework
and
I
spent
some
time
there
and
I've
contributed,
my
personal
data
and
I
want
to
leave.
I
have
the
right
to
be
forgotten,
so
blockchains
can
help
with
that.
Third
is
that
blockchain
architecture
is
fundamentally
decentralized.
So
we've
gone
past
that
single
point
of
failure
issue.
A
Okay,
now
returning
to
blockchain
compatibility
with
those
ethos
that
we
discussed
earlier
law
chains
are
non-discriminatory
because
we've
got
consensus
based
decision
making
based
on
peers
number.
Two
we've
got
observable
and
auditable
interfaces
due
to
the
immutability
of
those
transactions
on
chain
number:
three.
If
you
want
to
hold
people
accountable,
maybe
for
bad
data,
or
perhaps
you
promised
your
utility
that
you
wouldn't
charge
a
peak
demand,
but
you
did.
We've
got
smart
contracts
to
enforce
penalties
on
that
as
well.
A
Okay,
so
we
see
this
system
in
which
you've
taken
trust
out
of
the
scenario
you've
used,
we've
actually
allowed
utilities
to
now
trust
these
de
RS
and
before
I
go
a
little
bit
further.
I
just
want
you
to
understand
the
mindset
of
utilities
right
utilities
over
time
they
were
monopolistic
entities
right,
the
handle
generation,
transmission
distribution,
they
ruled
the
roost.
There
is
no
competitive
advantage,
nothing,
it
was
just
them
and
in
the
early
90s
there's
deregulation
and
there
began
to
be
a
lot
of
competition.
So
now
the
utility
is
a
service
right.
A
As
a
result,
the
utilities
have
a
tough
time,
trusting
different
people
to
provide
services
right
now.
You're,
coming
in
with
your
electric
vehicles
or
solar,
your
batteries
and
you're
saying
utility
I
can
help
you
actually
fulfill
your
operational
objectives
and
they
have
no
way
to
trust
you.
They
don't
want
to
trust
you,
and
why
should
they?
This
is
millions
and
millions
of
dollars
of
infrastructure
on
the
line
right.
So
if
we
can
introduce
a
system
that
takes
trust
out
of
the
equation,
then
we're
in
business.
A
Okay,
now
getting
into
the
mathematics
at
its
core
transactive
energy
frameworks
are
a
marketplace.
That's
all
they
are
their
ability
for
you
to
provide
energy
and
services
to
a
grid
operator.
So
what
we've
done
is
taken
a
smart
home
concept
where
a
smart
home
consists
of
solar
energy,
electric
vehicles,
a
smart
thermostat
and
a
battery
all
in
one
home,
and
we've
allowed
you
to
place
energy
bids
for
each
one
of
your
D
ers.
Okay.
A
So
if
your
battery
needs
a
certain
amount
of
energy,
are
allowed
to
put
in
a
price
quantity
pair,
represented
by
these
lines,
horizontal
and
vertical,
and
within
a
retail
marketplace,
which
is
usually
eight
homes
in
a
local
transformer,
you
can
trade,
your
energy
with
everybody
else.
It's
a
classic
case
of
peer-to-peer
energy
trading.
How
it
works
is
all
the
generational
sources
we
stock
on
the
left
hand,
side
from
bottom
to
top
and
all
the
loads
we
stack
from
top
to
bottom
on
the
left
hand,
side
and
where
they
meet
in
the
middle.
A
A
Okay
and
already
we
can
tell
that
when
we're
playing
with
this
kind
of
money,
we
need
this
to
be
done
in
a
trustless
decentralized
way.
That's
not
run
by
one
Operator
any
questions
on
this
slide.
Is
it
clear,
okay,
oops?
Oh
one
more
thing
see
here:
MC
P,
1,
MC,
P
2.
We
noticed
that
MC
P
2
is
a
lot
cheaper
than
MC
p1.
Can
anybody
tell
me
why.
B
A
Yeah,
you
nailed
it
right
there,
so
the
more
locally
sourced
energy
that
we
have
the
best
as
in
the
battery,
the
solar
all
the
way,
the
more
contracts
that
can
be
had
right
at
this
market-clearing
price.
Only
this
and
this
operate
because
they're
at
the
market,
clearing
price
right
load,
one
and
low
two
they
get
their
loads
on,
and
then
these
two
and
then
we're
done
all
these
guys
are
off.
All
these
guys
are
on
okay
and
this
market
clearing
price
because
we
have
more
local
generation.
We
allow
more
local
loads
to
come
on.
A
So
the
whole
idea
is
that
we
generate
more
local
energy.
We
consume
more
local
energy
right.
We
reduce
the
congestion
on
those
feeders.
That's
the
whole
idea,
so
you're
right
does
that
make
sense
a
little
bit
more
sense.
Now,
okay,
perfect
less
thing:
we
can
talk
about
characterizing
these
bids.
We
characterize
them
as
selfish
or
helpful.
Okay.
Now
this
is
an
energy
bid.
What
really
is
an
energy
bid?
It's
it's
sacrifice
on
what
you
perceive
to
be
something
that
is
a
benefit
to
you,
okay,
so
for
a
smart
thermostat,
its
thermal
comfort.
A
A
How
many
degrees
are
you
willing
to
sacrifice
your
optimal
setpoint
and
we'll
give
you
money
for
that?
So
the
way
we
can
characterize
is
this:
this
x-axis
measures,
the
temperature
deviation
from
your
preferred,
set
point
right.
So
if
I
want
the
the
temperature
in
my
house
to
be
20
degrees
Celsius,
this
is
the
maximum
I'm
willing
to
go
1.5
degrees
or
1
or
0.5.
So
we
see
two
types
of
curves
here
right.
We
see
the
orange
curve
and
we
see
the
purple
curve.
A
You
notice
how
the
purple
curve
breaks
at
zero
point
five
and
goes
all
the
way
up.
What
that's
telling
you
is
the
maximum
I'm
willing
to
play
with
my
smart,
smart
thermostat
is
0.5
degrees
at
that
point,
I'm
willing
to
pay
whatever
price
it
takes
so
I'm
selfish.
In
that
case,
I
don't
want
to
play
with
my
smart
thermostat,
because
I
need
that
thermal
comfort,
where,
as
a
helpful
bid
curve,
is
a
lot
more
flexible.
It's
not
rigid
at
this
point
that
breakeven
point
is
1.5
degrees.
A
Okay,
any
questions.
Ok,
now
getting
into
hyper
ledger.
How
do
we
translate
all
the
theoretical
knowledge
that
we
just
gained
and
how
do
we
translate
into
hyper
ledger?
Okay,
so
I
think
Laszlo
was
talking
earlier
about
channels.
Channels
is
a
really
useful
system
in
hyper
ledger.
It
allows
you
to
abstract
away
different
peers
and
put
them
into
different
channels
such
that
they
can't
communicate.
In
this
case,
what
we've
done
in
an
in
a
smart
grid
of
n
communities
is
we've
abstracted
them
into
different
channels
with
their
own
ledger?
A
Ok,
now
on
the
ledger,
we
store
time-stamped
minute
averages
of
all
the
energy
that
we're
dumping
into
the
grid
or
taking
it
away.
If
it's
negative,
like
in
this
block,
that
means
we're
in
Jack
power
to
the
grid.
It's
positive.
That
means
we're
taking
power
away
and
hid
is
a
home
indicator.
It's
just
a
indicator
for
who
you
are
in
the
network.
Ok,
the
smart
contract
has
three
functions.
New
interval
creates
a
different
bidding
interval
like
we
saw
earlier
calculation
of
the
market,
clearing
price.
You
know
how
we
match
the
supply
and
demand.
A
That's
actually
a
mathematical
formula,
so
we
implement
that
on
hyper
ledger
fabric.
On
chain,
so
all
that
works
on
chain,
and
then
we
close
the
interval.
We
actually
close
it
off
on
the
chain
and
nobody
can
contribute
to
that
anymore.
So
that's
how
the
smart
contract
works
and
the
peer
nodes
are
the
gateway
from
all
the
smart
homes,
all
the
way
to
the
blockchain.
A
So
there
are
things
called
D
apps.
Maybe
they
don't
exist
too
much
I!
Think
it's
more
of
an
e
thorium
term,
but
what
we
mean
by
I
D
F
is
just
the
application
that
you
use
to
interact
with
the
ledger.
So
we
created
a
dashboard
that
people
can
come
in
and
actually
program
their
curves
and
then
going
in
the
micro
grid
and
I
should
trade,
their
energy,
ok,.
A
Ok,
so
now
I
went
to
the
case
study
for
our
triangle:
micro
grid.
This
is
a
nice
picture
from
a
drone.
It's
a
nice
facility.
We've
got
about
three
and
a
half
acres,
100
kilowatts
of
renewable
energy,
about
100
kilowatt
hours
of
battery
lots
of
space,
but
you've
seen
that
picture
before
we've
got
a
severe
voltage
problem.
In
fact,
neither
you
worked
on
this
project
two
years
ago,
yeah.
A
The
reason.
Why
is
because
we
have
a
generation
to
load
ratio
of
5
to
1,
so
our
solar
panels
create
so
much
energy
and
there's
such
less
demand
that
the
voltage
is
out
of
whack
most
of
the
time
in
the
summer.
So
most
of
times
we
actually
return
our
solar
inverters
off,
or
we
get
some
sort
of
message
from
the
utility
saying.
There's
a
problem.
A
This
is
something
we
power
engineers
like
to
refer
to
as
a
single
line
diagram.
It
allows
us
to
visualize
all
the
main
assets
in
one
plane
diagram,
and
here
we
see
the
presence
of
four
nodes
on
the
network.
One
is
a
solar
Hut.
It
generates
about
30,
kilowatts
of
power
and
power.
We
can
control
so
usually
like
at
this
day
and
age
75%
of
solar.
You
can't
control
it.
It
just
generates.
A
If
you
want
to
disconnect
it,
you
actually
have
to
go
out
and
take
the
wire
out,
but
now
there's
smart
inverters
in
those
solar
panels
where
you
send
commands
and
it
can
curtail
automatically.
So,
although
there's
about
50
kilowatts
of
solar
out
there,
there's
only
30
that
we
can
control
so
we'll
only
consider
that
going
further
downstream
the
distance
is
about
125
yards.
We
have
wind
power,
another
20
kilowatts
with
the
active
battery
energy
storage
system
and
then
on
another
feeder.
Here
we
have
two
smart
homes,
one
with
solar
one.
A
Without
so
we
have
a
whole
bunch
of
assets
to
play
with.
This
is
actually
really
cool
micro
grid.
Also
at
this
this
micro
grid,
we
have
over
750
monitoring
points
so
for
those
of
you
interested
in
IOT
and
based
applications,
we
have
different
IOT
based
products
that
allow
you
to
monitor
in
real
time
and
for
those
of
you
that
want
to
do
any
research,
definitely
encourage
you
to
collaborate.
It's
a
really
cool
place
where
you
can
see
a
research
go
to
different
ends.
A
This
is
a
dashboard
I
created
it's.
You
can
tell
an
engineer
created
it,
it's
not
particularly
attractive,
but
it
allows
me
to
control
and
see
everything
in
real
time,
so
I
sample
data
from
all
the
inverters
on
these
assets
in
real
time,
whether
they're,
electric
vehicle
charging
station
or
their
power
meters
and
I
dump
all
that
information
to
the
ledger.
So
we
have
four
nodes
actually
going
out
there
minute
averaging
all
the
energy
consumption
and
then
throwing
it
onto
the
ledger.
B
A
Okay,
in
that
case,
whoever
owns
these
assets,
we
have
a
Raspberry
Pi
connected
to
all
the
mainland's,
so
one
connected
to
the
electric
vehicle
when
connected
to
the
smart
home
when
connected
to
the
sunny
HOD,
so
ever
as
any
skin
in
the
game
would
run
notes
in
a
in
a
utility
scenario,
then
you
would
get
aggregated
because
it's
impractical
for
for
one
device
to
run
notes.
So
there
are
services
called
aggregators
that
aggregate
people's
small
de
ours
together,
and
they
would
run
notes.
C
C
C
A
C
A
A
C
C
C
B
B
B
B
A
B
B
Basically,
what
you're
doing
is
you're
taking
surplus
power
and
you're
selling
it
to
somebody
who
basically
doesn't
have
it
now?
My
argument
would
be
when
you
cover
all
the
cost
of
the
setup
and
the
swapping
of
the
power.
It
would
probably
be
more
economically
feasible
profitable
for
you.
You
just
dump
that
power
into
some
sort
of,
like
basically
monetize
that
power,
probably
through
GPUs,.
B
Like
legitimately,
like
you've
set
up
this
system,
if,
like
the
classic
example,
is
mining
crypto,
but
there's
folding,
proteins,
there's
a
whole
bunch
of
stuff
that
you
can
use
excess
power
for
mm-hmm
to
generate
profit
sanity.
Centralized.
Why
great
those
to
me,
those
solutions
would
actually
generate
a
higher
return,
then
actually
selling
yeah.
A
It
depends
on
the
business
case
right,
so
the
only
way
this
business
case
is
successful
is
if
the
utility
gives
incentives
right
to
all
these
community
members,
because
I'll
show
you
some
simulation
results
two
slides
down,
but
you're
absolutely
correct,
because
the
price
electricity,
a
particularly
Ontario,
is
so
low,
like
the
wholesale
price
electricity.
We're
not
we're
not
getting
much
benefit
by
this
selling
and
stuff.
But
what
is
what's
going
on?
Is
it's
getting
the
utility
to
not
invest
in
that
capital
expenditure?
A
B
B
B
B
B
A
C
C
A
B
A
For
sure,
so
everything
that
you
saw
in
the
video
is
automated.
There
are
api's
for
all
the
smart
inverter
z'
as
per
the
new
requirements,
something
I
Triple
E
1547
in
I
Triple,
E
2030.
They
specify
that
every
new
de
AR
that
gets
connected
to
the
grid
needs
to
have
some
way
to
control
it
automatically.
So
it's
easy
to
interface
with
those
and
also
we
don't
need
to
reinvent
the
wheel.
So
if
we
want
to
curtail
at
some
point
some
some
solar,
we
provide
the
set
point
and
the
internal
algorithm
the
inverter
takes
it
forward.
A
A
A
B
B
C
C
A
C
A
California
there
are
legislations:
there's
a
company
called
a
Motor
Works.
So
what
they
do
is
when
there's
lots
of
solar
on
their
system.
They
incentivize
you
to
charge
at
that
time,
but
these
are
pilot
projects,
there's
nothing
mainstream
in
North
America
there
is
in
Europe,
but
not
non
North.
America.
C
A
But
they'll
what
they'll
do
is
they'll
they'll,
take
this
marketplace:
they'll,
simplify
it
and
come
from
the
distribution
level
down
so
like
the
gentleman
was,
was
mentioning.
This
type
of
energy
trading
happens
today
at
the
bulk
level.
What
we're
proposing
to
do
here
is
bring
that
marketplace
between
the
distribution
utility
and
those
ddr's.
A
In
that
case,
the
the
bulk
power
grid
will
never
go
away,
at
least
for
the
next
I
think
for
the
next
10
to
15
years,
because
as
soon
as
we
have
about
25
to
30
percent
renewables
on
the
grid,
as
Germany's
found
out,
there's
just
too
much
intermittent
see
instability
issues
right,
so
that
bulk
part
is
always
going
to
be
there.
The
only
way
we
can
use
these
de
RS
is
in
those
special
situations
in
which
we
have
those
congestion
points
and
then
give
them
incentives
to
back
off.
A
C
C
A
C
A
Let's
say
you
have
a
house
right
and
house
is
ten
kilowatts
and
at
your
peak
it's
five
kilowatts
right,
so
that
X
is
five
kilowatts.
It's
going
into
the
grid
right,
your
neighbor
might
use
it.
It
might
flow
down
to
the
to
the
other
end
of
the
street
you're,
injecting
that
power
into
the
grid.
Your
meters
just
running
backwards,
right,
there's
a
power,
and
if
you
have
a
solar,
yeah
yeah
does
that
answer
your
question.
B
A
B
A
Like
I'll
give
an
example:
Elektra
it
they're,
probably
the
most
advanced
utility
in
Ontario,
so
they've
built
a
virtual
power
plant
software.
That
does
something
like
this,
and
now
they
have
a
new
product
called
grid
exchange
and
they're
they're
doing
exactly
this
right,
they're
incentivizing
people
to
discharge
a
certain
times.
So
this
is
this:
is
a
market
that's
heating
up,
but
to
your
earlier
question
will
will
bulk
power
grids
ever
go
away?
I,
don't
think
so.
I
have
a
couple
of
slides
on
that
later.
Well,
we'll
get
to
it.
B
A
Yes,
they
are
and
hyper
ledger
yeah.
It's
called
great
exchange
you'll
like
it
check
it
out.
Through
these,
we
did
some
off
chain
simulation
scenarios
of
eight
houses
with
all
those
assets
and
what
we
found
was
if
we
do
coordinate
all
these
resources.
What
we
can
do
is
we
can
take
that
peak
load
and
we
can
reduce
it
by
sixty
percent,
mainly
by
getting
the
battery
to
discharge
at
helpful
times
all
right,
so
I
think
the
gentleman
is
making
points
about
the
revenue.
The
revenue
in
this
model
is
absolutely
not
enough.
A
We
see
a
weekly
community
cost
reduction
from
252
to
236,
so
that's
$2
per
week
per
house,
which
is
nothing
right.
So
all
this
actually,
the
the
trading.
All
the
hype
is
about
hey.
You
can
sell
your
energy,
you
can
make
money
in
the
current
economics
with
how
electricity
is
so
cheaply
priced
right
now,
that's
not
true,
but
the
flipside
is
that
the
utility
doesn't
need
to
spend
five
ten
million
dollars,
upgrading
their
infrastructure,
so
actually
the
winner
and
all
this
is
the
utility
not
necessary
to
the
peers
so
to
enhance
the
business
case.
A
Okay,
when
we
add
electric
vehicles-
and
we
have
a
balance
of
for
selfish
and
for
helpful-
and
we
find
that
we
can
actually
reduce
the
peak
load
a
little
bit
more,
mainly
because,
if
we
have
for
for
selfish
or
eight
health,
eight
selfish
and
eight
helpful,
they
all
tend
to
charge
at
the
same
time,
so
have
the
same
problem.
So
in
this
case,
we
we
bring
it
down
and
we
distributed
bringing
down
to
47
kilowatts.
A
So
last
couple
of
slides
here,
there's
a
lot
of
hype
about
blockchain,
obviating
the
middleman
and
cutting
the
utility
out
of
the
middle,
especially
over
the
last
couple
of
years.
People
are
talking
about
hey.
If
we
can
trade
energy
with
each
other,
then
maybe
we
don't
need
the
middleman.
Maybe
we
don't
need
the
utility,
including
Bloomberg,
there's
a
couple
of
articles
and
people
are
making
these
claims
right,
they're,
saying,
okay!
Well,
blockchain
is
great.
We
can
enable
these
period
of
your
energy
transactions
and
we
can
obviate
the
need
for
utilities
number
two.
A
Let's
all
get
solar
panels
and
batteries
we
create
our
own
micro
grids
together
and
number
three
I
can
sell
my
excess
energy
to
whoever
I
want
whenever
I
want
and
for
whatever
price.
So
these
are
the
way
some
people
are
starting
to
think
I
just
want
to
talk
about
them
very
briefly:
number
one.
The
utility
actually
owns
the
infrastructure
that
you're
trying
to
trade
on.
So
that's
never
going
to
happen
right.
The
utilities
not
just
gonna,
get
out
of
the
way.
So
that
is
not
true.
A
It's
not
like
you
can
just
come
in
and
and
remove
the
utility.
That's
not
gonna
happen.
Number
two,
let's
create
all
these
micro
grids,
that's
pretty
expensive
and
necessary
in
the
coming
years.
With
this
whole
transactive
concept,
you'll
be
able
to
take
your
energy
and
inject
services
back
to
the
grid
and
earn
money,
so
it's
not
necessary
for
you
to
go
and
start
making
these
islands.
There
are
concepts
called
island
and
micro
grids
in
which
you
can
have
an
interconnection,
switch
and
switch
off
completely
from
the
grid.
A
That's
totally
that's
totally
like
doable,
but
in
this
day
and
age
where
you
can
do
is
actually
switch
on
and
switch
off
whenever
you
feel
you
have
services
to
provide
to
the
grid,
you
can
connect
to
the
grid.
If
there's
an
outage
on
the
grid-
and
you
want
to
Island
off,
you
can
island
off
still
a
little
bit
away
from
the
business
case,
like
maybe
three,
four
or
five
years
until
those
situations
start
happening,
but
that
that's
it's
coming
for
sure
number
three
is
this
thing
about:
I
can
sell
energy
to
whoever
I
want.
A
So
if
we
have
one
Street,
let's
say
from
that
gentleman
to
this
gentleman
and
let's
say
one
two:
three:
four:
five:
we
have
five
houses,
so
house
one
makes
a
deal
with
house
five
and
says:
I'll
give
you
20
kilowatts
for
dollars.
He
can't
guarantee
that
all
20
kilowatts
are
gonna.
Go
to
him
right.
You
can't
beat
physics.
The
electrons
are
gonna
flow
to
where
the
demand
is.
So
if
there's
demand
everywhere
on
this
feeder,
everybody's
gonna
get
a
piece
of
that
20
kilowatts.
So
there's
no
way
reliable.
A
You
can
tell
somebody
that
I'm
gonna
give
you
20
kilowatts
and
they'll
get
the
20
kilowatts.
Instead,
what
we
do
is
we
use
the
grid
as
a
giant
buffer
right
and
that
buffer
feeds
everybody.
But
what
we're
trying
to
do
is
just
control
the
economics
around
it.
That's
all
this
project
is
okay,
so
conclusion
and
future
work,
don't
believe
everything
you
read.
Block
chains
are
not
going
to
remove
the
need
for
electric
utilities.
In
fact,
we
need
them.
A
Number
to
block
chains
can
be
key
lever,
key
enablers
of
transactive
energy
systems,
and
they
can
improve
power
system
resiliency
and
the
way
forward.
As
you
know,
we
implemented
this
in
hyper
ledger
Composer,
which
is
actually
more
like
a
PlayStation
version
of
where
we
need
to
be
it's
not
running
it
at
any
actual
nodes.
It's
not
running
actual
consensus
algorithm,
it's
just
a
proof
of
concept.
So
in
our
research
forward
with
dr.