Microgrid as a Service (MaaS) and the Blockchain

It is a splendid event to observe when two new technologies combine to create a new marketplace. In recent years as new sources of distributed energy have been entering the electrical grid to provide power they are necessitating a change to the existing large-scale infrastructure model of power supply.

Classic Electric Power Grid Model

Figure 1. Classic electric power grid model with bulk generators transferring power long distances to reach the consumer.  Image courtesy of NetGain Energy Advisors. (1)

The old model utility was large and centralized and tracking transactions was simple as consumers were on one side of the ledger, while the provider as on the other. And whereby currency and energy flowed only in opposite directions between two identified parties, consumer and provider.

In the emerging markets of small-scale independent energy providers, we can see buildings, communities and even individual residences having built capacity to provide intermittently or on demand power at times, and consume or store power from the grid at other times. Solar power is only available during the day, and will require new commercial methods of energy storage.


Figure 2. An example Microgrid (2)

In the transition from decentralized utility is the development of the Micro-grid.  The Micro-grid offers many benefits to society, including; (a) use of renewable energy sources that reduce or eliminate the production of GHG’s, (b) increases in energy efficiency of energy transmission due to shortening of transmission distances and infrastructure, (c) improved municipal resilience against disaster and power reductions, and finally, (d) promotion of economic activity that improves universal standard of living.

As buildings and communities evolve they are moving toward renewable energy sources to supplement their energy requirements and reduce operating costs. Even the building codes are getting into the act, requiring buildings be constructed to new energy efficiency standards. Also, we are seeing the development of new technologies and business methods, such as solar powered charging stations for electric vehicles.

The existing electrical grid and utility model has to develop and adapt to these new technologies and means of locally generating power. The future will include the development and incorporation of peer to peer networks and alternative energy supply methods. Consumers may purchase power from multiple sources, and produce power and supply it to other users via the electrical grid.

Micro-grid and the Blockchain

As new energy sources/providers emerge there is added complexity to the network. Consumers of power can also be an energy providers, as well as having different energy sources available. This increased functionality raises the complexity of possible transactions in the network.

Imagine a financial ledger, where each user in the system is no longer constrained to be a consumer, but also a supplier to other users in the system. In order to track both the credits and debits it has been proposed that the exchange of blockchain tokens be utilized to sort out complicated energy transfer transactions in a distributed P2P network.


This class of Platform Application gives retailers the ability to empower consumers (or in an unregulated environment, the consumers themselves) to simply trade electricity with one another and receive payment in real-time from an automated and trustless reconciliation and settlement system. There are many other immediate benefits such as being able to select a clean energy source, trade with neighbors, receive more money for excess power, benefit from transparency of all your trades on a blockchain and very low-cost settlement costs all leading to lower power bills and improved returns for investments in distributed renewables. (3)

One blockchain based energy token that has caught my attention is called POWR and is currently in pre-ICO sales of the tokens by the Australian platform Power Ledger. One of the uses of the platform that is being suggested is peer to peer trading.

 “We are absolutely thrilled with the results of the public presale,” says Dr Jemma Green, co-founder and chair of Power Ledger. “Selling out in just over 3 days is a very strong performance in line with global ICO standards, which speaks to the strong levels of interest from consumer and institutional buyers.”

The proceeds from the total pre sale were AU$17 million and the main sale on Friday offers approximately 150 million POWR tokens (subject to final confirmation before the sale opens) in an uncapped sale, meaning that the level of market demand will have set the final token price at the end of the sale. (4)



  1. The Changing Power Landscape
  2. Siemens – Microgrid Solutions
  3. Power Ledger Applications
  4. PRESS RELEASE Having Closed $17M In Their Presale ICO, Power Ledger Confirm Their Public Sale Will Commence on 8th September 2017

An Engineering Blockchain Cryptocurrency

The revolutionary aspect of the blockchain is starting serious discussions in the Professional Engineering community. Indications are that there are some fundamental problems in Engineering may be solved by the issuance of a token, in this case called Quant (1) and is currently in the “sand-box” phase of development.

The plan, in part, involves mining Quant to create a public key, or data-base called Engipedia.  There is also a “proof-of-stake” (2) aspect, which forms an engineer’s private key summarizing by algorithm the engineer’s personal data such as education, qualifications, projects, and other contributions or related works.

The Quant token, which is proposed to have inherent smart contract capabilities will be mined by engineers in a variety of ways, most of which are intended to establish an expanding  knowledge base, one such enterprise is called Engipedia. This is a knowledge base which has a formidable upside for democratic technological advancement and dissemination of workable knowledge worldwide.

As a virtual currency, the Quant token may provide a necessary bridge to financing that was previously inaccessible to engineers. Often pools of capital are controlled by vested interests or politically minded parties. Economic opportunities, which previously were unavailable due to lack of funding, may now have a financial vehicle for entrepreneurial Engineers.

The Design is the Contract

Engineering is different than finance and insurance. Finance and Insurance merely need to represent a physical object in a party / counter-party transaction script.  There is no design involved. Engineering represents a physical object – the engineering design and specification IS the smart contract. Then, what happens in construction, operations, maintenance, renovation, and replacement is far too complex to be scripted in a single smart contract. Engineering outcomes involve enormous mass, forces, and real-life consequences. (3)


  1. The Market for QUANT
  2. QUANT Proof of Stake
  3. A Warning to Engineering Firms Concerning Blockchain Technology

Energy Certificates and the Blockchain Protocol

In the world of energy production, renewable energy sources, micro grids, large scale users, and other forms of electric power schemes there is a concentrated effort being placed on utilizing the Blockchain protocol.  This is because of the unique way in which a unit may be defined and tracked, similarly, can be associated to tracking quantities of value created and utilized in a complex trading scheme.

In a recent article (1) it has been reported that Jesse Morris, principal for electricity and transportation practices at RMI and co-founder of the Energy Web Foundation (EWF) received $2.5 million to develop the Blockchain protocol for energy purposes.

“We have a strong hypothesis that blockchain will solve a lot of long-running problems in the energy sector,” said Morris. “Overcoming these challenges could make small, incremental changes to energy infrastructure and markets in the near term, while others would be more far-reaching and disruptive.”

Certificates (also known as guarantees) of origin would assure the user that a particular megawatt-hour of electricity was produced from renewables. According to Morris, the U.S. alone has 10 different tracking systems, Asia-Pacific has several more, and each European country has its own system of certification. Blockchain could be used to transparently guarantee the origin of the electrons.

Longer-term, and more radically, RMI sees the future of electricity networks being driven by the billions of energy storage and HVAC units, EVs, solar roof panels and other devices and appliances at the grid edge.

Blockchains can allow any of them to set their own level of participation on the grid, without the need for an intermediary. And crucially, they can be configured so that if a grid operator needs guaranteed capacity, the grid-edge unit can communicate back to the grid whether or not it’s up to the task.

This is an example of what Morris described as blockchain’s ability to “fuse the physical with the virtual” via machine-to-machine communication.  (1)

Another example of the emergence of the usefulness and interest in the Blockchain protocol is in crowdsourcing and distributed ledger applications.

Illustration by Dan Page (2)

At its heart, blockchain is a self-sustaining, peer-to-peer database technology for managing and recording transactions with no central bank or clearinghouse involvement. Because blockchain verification is handled through algorithms and consensus among multiple computers, the system is presumed immune to tampering, fraud, or political control. It is designed to protect against domination of the network by any single computer or group of computers. Participants are relatively anonymous, identified only by pseudonyms, and every transaction can be relied upon. Moreover, because every core transaction is processed just once, in one shared electronic ledger, blockchain reduces the redundancy and delays that exist in today’s banking system.

Companies expressing interest in blockchain include HP, Microsoft, IBM, and Intel. In the financial-services sector, some large firms are forging partnerships with technology-focused startups to explore possibilities. For example, R3, a financial technology firm, announced in October 2015 that 25 banks had joined its consortium, which is attempting to develop a common crypto-technology-based platform. Participants include such influential banks as Citi, Bank of America, HSBC, Deutsche Bank, Morgan Stanley, UniCredit, Société Générale, Mitsubishi UFG Financial Group, National Australia Bank, and the Royal Bank of Canada. Another early experimenter is Nasdaq, whose CEO, Robert Greifeld, introduced Nasdaq Linq, a blockchain-based digital ledger for transferring shares of privately held companies, also in October 2015. (2)



  1. Energy Companies look to Blockchain
  2. A Strategist’s Guide to the Blockchain