This study probes into the potential impact of Blockchain on the future of Utility industry and recommends a high-level strategy for Utility companies to embrace Blockchain to create new revenue streams while enduring the threat of disintermediation.

1. Blockchain in utilities
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Prepared By
Mudassar Shaikh
1

2. The Changing Utility Landscape
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Emerging Trends
Policy Regulation
• Local and global environmental concerns over
air emissions
• Energy security and reliability goals
Technology changes
• Innovation in data, intelligence, mobility and
asset optimization
• Increasingly digital operations
Consumer Behaviour
• Consumer is informed connected
• Rise of a ‘Pro-sumer’ model
Renewable power generation
• Shift towards renewable energy has caused
emergence of distributed energy generation
Markets
• Reduced demand for energy
• Dynamic markets with real time trading
Generation
Customers
Transmission Distribution
MarketRegulation
Challenges
Policy Regulation
• Pressure on power generators to reduce reliance
on fossil fuels
• Secure transmission of data throughout value
chain is a key priority
Technology changes
• Pressure to increase performance of existing
assets by leveraging real time data & insights
Consumer Behaviour
• High expectations in terms of reliability
Renewable power generation
• Need for more flexible and agile grid
• Need for balancing supply and demand in real
time
Markets
• Changing business models

3. “How can Utility companies use Blockchain to solve the
current challenges and endure the threat of
disintermediation caused by it ? ”
3
The Key Issue ......
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4. Not all problems can be solved by Blockchain !
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5. Understanding Blockchain
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6. Four key elements of Blockchain critical to utilities
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Digital Ledger – Decentralization Algorithm based consensus
validation
Smart contracts
Cryptographic security
• Highly secure transactions
• Practically impossible to access
data without authorization
• Enables autonomous
transactions when obligations
of contract are fulfilled
• Large number of small
transactions are now possible
• No central storage of data
• Verifiable at any time
• Can never be changed once
recorded
• Need for an external validation
by a third party is completely
eliminated
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7. Potential Blockchain based use cases across the energy value chain
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GenerationGeneration Transmission& Distribution
Retail and Wholesale
Markets
End Consumers
• Wholesale power is traded via
smartcontracts
• Blockchain based payments
especially for developing
countries
• Blockchains enabled sensors
and controls allow for secure,
centralized data and improved
grid resilience
• Secure power generation and
supply data transcribed to
blockchains allow for visibility
security and accuracy
• Renewable energy credits based
on actual production are
autonomously awarded
• Real time customer-utility
interactions facilitate faster
payment cycles more efficient
energy use and streamlined
account management
• P2P trading
• EV Charging connect with
blockchain infrastructure through
smart wallet
• Smart home appliances

8. Key use cases : P2P Trading Model
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• Localized generation & consumption of
energy minimizing transmission losses
• Reduced involvement of intermediaries
like utility companies
• Greater grid resilience to emergencies
and blackouts
• Pilot project of 50 participants is being
test by LO3 Energy & Siemens in Brooklyn
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9. Key Use Cases : EV Charging Model
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• Air-bnb type model to create
consumer owned network of home
charging stations
• Use of Blockchain to validate identity
of customer
• Payments will be facilitated through
Smart Contracts.
• Faster adoption of EVs due to greater
ease of use
• Innogy has launched a pilot initiative
in Germany
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10. What does the future look like ?
Smart Micro-grid enables P2P trading and EV charging
Distributed Energy Resources
DSO Market enables real time trading
Automatic grid balancing with smart devices & EV charging
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Pro-sumers
Electric
Vehicles
Photovoltaics
Sub-station
Smart Micro-
Grid
DSO Market
& Smart grid
manager
Buildings &
communities
Wind Mills
EV
Charging
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11. Blockchain Strategy for Utilities
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P2PTrading
Utilities own hardware and blockchain infrastructure
• Utilities charge consumers per
transaction for accessing the
blockchain infrastructure.
• Cryptographically secured flow of
data.
• Large number of autonomous
transactions done via smart
contracts enable real time trading
of energy.
• System is more agile and flexible
to respond to variation in supply
and demand.
Private permissioned blockchain
ensures that only authorized nodes
access and validate data. The time
to process transaction is less.

12. Implementation Roadmap
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Support the formation of a consortium based private blockchain while working with other
stakeholders in the industry
Identify and screen problems that can be solved using blockchain based systems
Create an ecosystem of startups focused on solving the problems using blockchain
Implement the solution on full scale
• Implement change management methodologies to ensure success

13. Screening problems that can be solved using blockchain based systems
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No
Yes
No
Yes
Yes
Yes
No
Yes
Is there a transaction that
involves transfer of value
or data ?
Is there Trust between
transacting parties ?
Is the data private?
No
Use Private Blockchain
Use Public Blockchain
Blockchain
not
Required
Blockchain
not
Required
Blockchain
not
Required
Is there a database of
information ?
Are there multiple
stakeholders writing and
reading the data ?
No
Blockchain
not
Required
Note: As of now, Blockchain
based transactions are much
slower than those in legacy
systems. This might be an
additional consideration.

14. Creating an ecosystem of startups solving relevant problems
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①
①
②
③
④
Assist start ups
in creating
Proof of
concept
Invite startups
to create
solutions for the
problem
Define the
problem to be
solved using
blockchain
Acquire the
startup & integrate
the solution

15. • Clearly define the problem
to be solved
• Determine whether using
blockchain will actually add
value
• Determine the type of
blockchain architecture to be
used
• Testing the system in
an isolated sandbox
environment with real
data
• System is tested
running a simulation
preferably on a cloud
• No customer is
impacted
• A small contained trial with
real but a small number of
customers
• Lessons learnt in tests
conducted during POC are
integrated in the system
before field trial
• Implementing an
organization wide system
• The scope for improvements
at this stage is limited hence
the risk is high
Identify Use Case
Build Proof of
Concept
Conduct field
trial
Full scale roll out
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Framework to build and deliver Blockchain based solution

16. Implementing the solution
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Not having changed for more than 70 years, Utilities lag behind other industries in adoption of emerging
technologies
Source : CIO Agenda Utility 2018 Gartner
7%
44%
27%
2%
5%
4%
0
4%
37%
32%
14%
11%
21%
7%
89%
18%
40%
84%
84%
75%
93%
0% 20% 40% 60% 80% 100%
3D Printing
Digital Security
IoT
Virtual Reality
Smart Robots
AI
Blockchain
Have already invested & Deployed
In short term planning /Experimenting
Not initiated
Percentage of respondents
13%
62%
28%
7%
11%
15%
4%
9%
29%
23%
23%
20%
35%
19%
78%
9%
49%
69%
69%
50%
77%
0% 20% 40% 60% 80% 100%
3D Printing
Digital Security
IoT
Virtual Reality
Smart Robots
AI
Blockchain
Have already invested & Deployed
In short term planning /Experimenting
Not initiated
Percentage of respondents
Utilities Other Industries

17. Implementing the solution
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52%
17%
15%
1%
46%
23%
13%
2%
CULTURE RESOURCE TALENT IT INFRASTRUCTURE
Utilities Other industries
Percentageofrespondents
Source : CIO Agenda Utility 2018 Gartner
Culture remains the number one barrier in adoption of emerging technologies
Implementing change management methodologies will play a key role in this phase

18. To summarize …..
• Utilities can be enablers of P2P trading via Blockchain and create new revenue streams.
• Given, the interdependency on different stakeholders in the industry, Utilities should support a
consortium based private blockchain.
• Utilities can create programs to develop startups focused on solving specific problems and
later acquire them to integrate the solution
• Change management will play a key role in implementation of solutions
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19. 0.5
3
2
3
1
Process
Improvement
Blockchain
Relevant ExperienceKey Skills – (IN YEARS)
Business
Proposal
Development
Strategy
Consulting
Project
Management
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A little about me …..
● Excellent story teller
● Thought leader on Emerging
technologies for a management
consulting website.
● Coffee lover, Hiker, Biker, Piano
player and cooking enthusiast
● UNICEF volunteer and founder of a
school in a remote village.
Skills Passions and Interests
● Leading end to end client
engagements while managing cross-
functional teams to deliver projects
on-budget, in-time in Energy and
Utility sector.
● First-hand Operations strategy
consulting experience.
● Expertise in conducting primary and
secondary research to derive insights
and make strategic recommendations

20. Get things done, Negotiator, Conflict Manager, & structured decision maker
Accountable, Mission-driven, Innovate, Team work, Customer Focus, & IntegrityValues
Leadership
MBA, Bachelor’s in Mechanical Engineering, Master’s in Thermal
Engineering, PMI- PMP Certified
Qualification
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Mission
“An engineer at heart, a strategist by profession, an entrepreneur by spirit
and a student by essence, my mission in life is to enable companies to
leverage disruptive technologies and apply them at scale, positively
impacting the lives of many and ultimately pushing the human race forward.”
More about me …..

21. Let’s meet over coffee !
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Contact Details
Email: mudassar.shaikhMBA@gmail.com